I actually have a couple of questions and want to be sure about my plan of action. I was about to pay for a credit service but would prefer to do it myself. First, I have two derogatory accounts that I need to get a handle of. The first is an old credit card from 1995 that is still showing up on my report. The report says that it was reported 3.22.2004 but this account has been inactive for quite a while. I'm assuming I should just send them in a validation letter to get that resolved. It's for a pretty small amount, $400, and I could just pay it, but if it's invalid I would prefer not to. The second issue is a student loan gone bad. I was overpaid in loans from my University, the school did an audit and all of a sudden I was stuck with 10K bill in order to graduate. They said that if I agreed to pay they would let me graduate, but would keep my diploma. I paid min. amount until I graduated and then did not pay the payments. This was back in 1999. Well they kept my diploma and would not release my transcript which didn't affect me at the time, but does now (trying to further my education). It's not really considered a student loan, such as sallie mae, but just an obligation to the school. I spoke with the university about getting my transcript and agreed to start making payments, and at a certain point they will release my transcript, but it still remains on my account as derogatory, which is not helping me. My score is 580, and I'm trying to purchase a home in the next 12 months. How do I affect this account? Do I have any legal recourse? I also have a couple of closed accounts that are still on my report, Should I request to have those removed completely, because they show late payments in the past even though they are closed? Thanks in advance for the help!
In addition, the university sent the loan to a collector. I show an inquiry by the collector that wasn't authorized. Can they do that?
About the school loan, I would suggest checking your state laws about the Statute of Limitations (SOL). It's difficult for me to believe that a written contract would still be collectible in court if your original default date on the loan is 1999. About the Last Reported date on your CR, this is what I believe. THAT date is just the last time the Original Credit (OC) decided to make a report of this account to the Credit Reporting Agency (CRA). What you really want to know is the original date of delinquency. Then you can figure out when this will fall off of your report. In my opinion making a payment on either of these is a bad idea, until you check with a lawyer about the SOL. If you start payments NOW it would potentially have the effect of re-setting the date of delinquency and thus the date it will disappear from your credit report. I advise you to research this thoroughly before proceeding. Once you have your facts, perhaps a small settlement can be made with the college in exchange for your transcripts. This will get you started.
did you sign a promisory note ? It is with the dept of ed? or student stafford or direct loans? you said the university overpaid you, if you did not sign an agreement you may not be responsible to pay for their mistakes. I do know in certain cases if the loan was given to you based on your school attendance and your drop some classes the school requires you to repay a portion of the loan back is this the case? ck your states laws on this one, because some school loans can not be collected under certain terms such as if you are unable to further your education, if the school closes, you become disabled etc. could you possibly get the loan to go into deferment status for awhil, this will allow you to proceed and make payments at a later time .
The loan is with the school, not the student loan people, and part of the agreement for them letting me graduate is that I sign a promissory note, and this is something they won't let me defer.
What date did you go delinquent on the promissory note? What are the SOL laws in your state. Is this SOL?
AVS- You definitely have a big problem with this one. I'm assuming you signed the promissory note in order to graduate. If so then they have you by the proverbial cojones. You cannot do anything but deal with it because they WILL not release your transcript if you don't. No transcript...no more higher ed. The SOL has nothing to do with your problem. So what if they can't sue you...they can still hold your transcript. The only thing you can do is to contact the school and talk to the financial aid people first. They won't be able to help much but they can get you to the right person who can. When you get to that person beg, plead, cry, get on your knees and kiss their feet...whatever you can do to get them to work with you on this. But since you screwed them over the first time they might not be very sympathetic. They might just tell you to deal with the CA and when the debt is paid off they will release your transcript. If that is the case then you might have to forego any more education for awhile. I'm sorry to be the bearer of bad news but I think you knew this already. The good news is while you're paying off the 10Gs you will have plenty of time to get the other negs off. clc
If I arranged monthly payment to the school, should they update my account to show it being current instead of derog? The SOL in Texas is 4 years
So what is the SOL has expired. THEY ARE HOLDING YOUR TRANSCRIPT HOSTAGE. If you for any reason need to produce a transript to prove you graduated you will be SOL (s**t out of luck) as you already know. I can't tell you what they will do...they're in control. Take my original advice and go from there. If you want them to release your transcript ask them if they will. Because the note is SOL they at the minimum would make you sign a new agreement and the SOL will once again be a sum zero game. What I suggested above is your only option if you want your transcript or else forget about any further education goals. clc
