I just paid off my student loans that had gone to collections and my CreditExpert score dropped 28 points. Makes me want to set back and do nothing. I think I might be better off. Has anyone experianced this before?
Student Loans do not go away. They are outside the normal SOL. Did you rehab the loans to have the negative information removed?
I consolidated them. I was told that durring the process that the negative info would be removed. The entries were removed from TU and EQ, but not from Experian. I contacted the DOE, and they told me that all they would be willing to do is update the collection as paid. I was obviously misled, should have gotten it in writing. Never will trust RMA again, should never have in the first place.
Yeah, sounds all too familiar. I know there could easily be a class action lawsuit if some lawyer wanted it. When it comes to student loans, most companies say loans that have been consolidated can not be rehabbed, but that is a company policy, not a law! The law says (Higher Education Act- do a search for it here, I've left alot of info!) that they must offer a rehab program and after 12 on time payments, any negative info must be removed. You made an oral agreement with someone, maybe it was the colllection agency, maybe a member of the creditor's staff. They obviolusly are not living up to the terms even though you have. Send a CRR letter to the legal department of whoever will not remove the tradelines from your file. State they are in violation of this agreement and you intend to file suit if you can not reach an agreement. If they reply, have them remove it. If they don't, I would file a small claims court action for the maximum allowed in your state. Be specific with the violation.... Site one year of the student loan and a specific Experian report number. Your bargain power this way goes way up because you can file a suit for each year of the student loan for each Experian report. Remember this is for violation of your oral agreement with a rep for the creditor.
While not exactly the same, I've had my score go down when collections were removed. It's wierd..and frustrating!
