I've been unable to get a solid answer from TU on this, so I hope someone here can help me: On my TU report, I have 2 student loans showing up as paid charge offs which were purchased by Sallie Mae in June 1996 and sold to the Guarantor (and reported on) in August 1998. No payments were ever made on these accounts while owned by Sallie Mae (the loans are now rehabbed, but the oh-so-friendly folks Sallie Mae absolutely refuse to change their records to PIF, under the reasoning that they no longer own the loan) As I understand it, charge offs fall off the report 7 years from the date of first delinquency. But the first delinquency is not listed on this report - it shows no payments made & no activity. The rep I've talked with at TU said since there wasn't a delinquency date listed, the charge off would be removed 7 years from the date the loan was sold. Shouldn't it be 7 years from the purchase date in 1996? or is the TU rep correct - will it be 7 years from the date sold in 1998?
FCRA § 605. Requirements relating to information contained in consumer reports [15 U.S.C. § 1681c] (a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information: (4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.(1) ---------------------> (1). The reporting periods have been lengthened for certain adverse information pertaining to U.S. Government insured or guaranteed student loans, or pertaining to national direct student loans. See sections 430A(f) and 463(c)(3) of the Higher Education Act of 1965, 20 U.S.C. 1080a(f) and 20 U.S.C. 1087cc(c)(3), respectively. (c) Running of reporting period. (1) In general. The 7-year period referred to in paragraphs (4) and (6) ** of subsection (a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action. (2) Effective date. Paragraph (1) shall apply only to items of information added to the file of a consumer on or after the date that is 455 days after the date of enactment of the Consumer Credit Reporting Reform Act of 1996. Allisona, They would be telling you wrong if it wasn't for the tradeline being a student loan; however, I'm not familiar with the Higher Education Act or it's provisions -- that is specifically referred to in the FCRA via the (1) reference. Looks like that is where you will find your answers. It sure reads hokey that they would go by the sold date however -- that's one of the things the FCRA amendments were all about. The sold date could be changed every 7 years or with each time it changed hands if that were the case. I suppose since it's government money anything is possible. Summons Doc, he's the God of student loans ;-) No matter what TU is verbally telling you, it's still an option to dispute the specific date being reported for the 7 year period and if verified then requesting the specific procedural method of verification. Sassy
