need info on credit reporting laws

Here's my question. Is there any law that says a creditor CANNOT remove derogatory info if they want to? I have a situation, a long story, but there is some derogatory info on my credit report. The creditor is saying that they would take it off if they could, but they are bound by law to leave it on. I can't find anything in the Fair Credit Reporting Act that says this, nor in the HEA (Higher Education Act)It involves a student loan.

To summarize the story, I had a Perkins loan in either deferment or forebearance for about 10 years. When I began repayment in 1998 they had not told me that the interest that had accrued would be due as a lump sum. I could not pay that, so I began making my monthly payments plus $100, almost doubling my monthly payment. They began to report the payments as past due even though I was making the monthly payment on time, and paying extra to pay off the interest payment. Now my credit report shows 90+ days past due 21 times. I paid off the loan in 2000 when I went to buy a house. The original balance on the loan was $4000. It cost me over $10,000 in higher interest on my home loan. I called the school to tell them the situation and to ask them to remove the derogatory info and was told they could not, as they were bound by laws to leave it on there. I cannot find any law that says this. I am about ready to sue them, as I just had to purchase another car, and that cost me an extra $2500 in interest rates due to this being on my credit report. I am also trying to refinance my house, but having a hard time getting a loan due to this.

Thank you for your time.

 

Well! I guess I finally found the group that can help me. I posted on a couple of other message boards, and on one was told that it seemd to him that the reporting was accurate! I just didn't get it. How can it be fair and accurate to show 90+ days late 21 times but not show that I was making just about double my monthly payment the whole time!!??

So here's what I've done so far. I started an inquiry with Equifax. I guess i need to do that with the other 2 agencies also....?

I went to the Dept of Education web site and came across the Student Financial Aid Ombudsman. The have opened up a case, and I'm hoping to hear from them this week.

I called the House Education and Workforce Commitee, looking for someone to help me translate the legalese of the Higher Education Act. The school is quoting sections of this as the reason that they cannot remove the info. I found a woman there, who after hearing my story said she would call the school also. I never expected her to do that, I just wanted help with the document. She also confirmed my suspicions that at this point the HEA has nothing to do with removing the derogatory info.

If none of this works, I'm tempted to try out that Lexigton Law Firm. Can anyone tell me anything about them?

One other question...what is Doc's Trick all about? Is it to get all the inquries off? I am trying to refinance my house, and we just purchased a used car. So far I think the dealership went to 5 or 6 places before they got the loan. I thought I read somewhere that you can get all those inquries off as there isn't supposed to be more than one for a particular purchase? Is that right?

Any other suggestions would be greatly appreciated. I have BK that will be coming off in less than a year, my credit will look great after that if I can just get rid of this one thing.

Thanks a bunch!

 

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