Some of you may remember me from prior postings. I changed my login name for privacy reasons. But, I'm the won that sued the guarantor of my student loans in Washington State because they kept reporting me as past due to CRA's on loans I paid in full in 1995 even though they gave me letters stating I was paid in full. (I represented myself in Federal District Court and took 16 hours of depositions from the Defendant's employees) Well, it turned out they refused to update my status in their system and lied about the whole thing. They kept telling the court in legal pleading my status was PD, which they said meant paid in full, but it turned out that PD meant Paid (not in full) Principle Settled. Can you believe that? I had them for fraud. So, they settled the suit. I also took a bite out of Equifax for reporting me I5, but with a zero balance. So, the lawsuit is over. But, I still can't let go. I got a license to do business as a student loan counselor in this state last week. Woo baby. My nemesis will just love this. I realized that the Code of Federal Regulations allows borrowers to contact me regarding their rights. Anyway, I'm more than happy to give out FREE counseling here (which people are getting anyway at this site). But you should know. As for student loans, to my knowledge, I'm the only person I ever heard of that won a lawsuit. Anybody else out there get success.
Mozilla, First, let me say congratulations. You are my hero in this regard. Second, I really need your help with respect to the NSLDS records. I'm running into a big headache and American Student Assistance is giving me the runaround. I may need an attorney soon. This is a very long post: Last November, I rehabilitated 5 defaulted loans with ASA. After rehab, I received a letter from ASA stating that my all my loans had been reinstated with Sallie Mae, were out of default, and were paid in full. I called several times and was assured that I had no outstanding balance with ASA (principle, collections, interest or otherwise). In March, I looked on the NSLDS at my records. All of the disbursements, except one, were updated from "DU" for "defaulted unresolved" to "DX" for "defaulted, six consecutive payments" and finally to "PF" for "paid in full". This is fine with me and accurate. The one disbursement that was problematic was updated from "DU" defaulted unresolved" to "DX" "defaulted, six consecutive payments". At this point, it should have been updated to "PF" for "paid in full". But instead it was updated BACK TO to "DU" defaulted unresolved" and then to "IR" for "in repayment". So according to the NSLDS, I am repaying ASA for one disbursement - even though this has been rehabilitated and is now with Direct Loans. So, I called them in March and they said they'd update it but b/c the DOE updates the NSLDS database monthly, I would have a two month lag time. So I wait until May. Still no change - So in May I call and fax them copies of my online records of the messed up disbursement writing very clearly that it needs to be updated to "PF". To make it even more clear - and this is what bites - I sent a record of a disbursement that was normal as an EXAMPLE of what the incorrect one should look like. I'm told again that it will be a two month lag time. I am also told that there is a bug in the system wrt how ASA inputs the data for this particular disbursement and they are working to fix the bug so that my disbursement will be accurate. I ask for a letter stating this problem, and the letter I get says that " due to a problem (which is not specified) with ASA's computer system, that my disbursement is not accurate (but the inaccuracy is not specified), and that they have no comment on whether my loans are in default or not!!!". In July, August, September, October - no change to the NSLDS system - and when I call I get told "you have to wait until the DOE updates". November: That original entry still reads "DU, DX, DU, IR" and NOW has a principle balance due of $2000. So, not only am I back in repayment with this loan but I owe ASA $2000 according to the database. And - this is what bites - the entry that I faxed as a normal example to go by NOW reads "DU, DX, PF, IR"!!!!! So, it's back in repayment with ASA as well!!!! So, I call the ASA director of the NSLDS system, fax over a new request that both entries need to be corrected, and she claims no knowledge of the issue and says that she'll have to review my records. I call today to find out the status, and she says they haven't updated my records b/c there's an issue with their system. She says that they sent me a letter a month ago to tell me the status (I never got it), I ask her what the letter says and she says that she doesn't remember anything but my former account manager who signed off on it should and I need to call him. So, I call him, and he says that the letter is in the mail and when I ask him to read it to me over the phone, he says he doesn't have a copy of it b/c it hasn't been entered into their scanning system and he is "drawing a complete blank" over it's contents and can't tell me anything. So, the two people who wrote and signed the letter have NO clue what it says and as of today it is lost in ASA somewhere and cannot be retreived until it "gets processed" by the scanning dept. And the one they sent to me must be lost in the postal service somewhere since I haven't gotten it yet. ASA says "you know how bad the mail service is these days" but my other national mail is being sent and received jsut fine. What I do have in writing from ASA is the following: 1. 2 letters that my defaulted loans are reinstated and paid in full. (another is on its way per my request today) 2. 1 letter stating that my consolidated loan with ASA is paid in full. 3. 1 letter stating that due to a bug in the ASA computer system that there is an error with my disbursement's record, but this doesn't comment on whether it in default or not. I am ready to call the Ombudsman's office and/or get an attorney. I don't want ASA to pull a fast one and say that I owe them $2K on a loan still in default or that two of my loans were not paid in full as previously thought. If you got this far, thank you for reading. Do you have any comments on how to proceed from here?
Marci, this happened to me too, kind of. The NSLD shows a student loan as paid in full AND as in default. How can it be both? The Financial Aid Rep at school said the same thing. Any suggestions? BTW, this is reporting on my reports as $0 balance, paid collection, I5. It was consolidated and Equifax is using an incorrect account number, even the SL people have no record of the account, yet it comes back verified.
Marci from what I have read the ombudsman is specifcally created to help your situation. Also, Pamela Moran, Policy Development Division, Loans Branch, Department of Education, (202) 708-8242 may be of help. I'd go through these free channels first before you do the whole lawyer thing. Hopefully, either one of these sources can light a fire under ASAs @ss to get this thing resolved. I'd fire off a lengthy letter to both describing this fiasco and mention you're so fed up you're considering legal action. Bet something would happen. Hang in there.
Thanks, RockBottom. I have spoken with Ms. Moran in detail about a year ago for a slightly different issue with USA Group loans. I may try her again or my Ombudsman specialist (I have his direct phone number) if this isn't resolved soon. I just want to know if Mozilla thinks I'm overlooking something important in this - as the DOE has given students NO recouse to get the NSLDS fixed in any way other than going through the servicer who made the errant entry.
This is something I know about from my lawsuit. Your student loan servicer probably uses the EAGLE data system. I saw their employee manual for the EAGLE system. In it, when a status change is made to an account, it assigns a new account number and updates the new status. If you ask me, this is a false a deceptive business practice and gives you an actionable claim against them and Sallie Mae (formerly USA Group Services). If you want to pursue this, you will need to request your student loan file from the guarantor and everyone else that has ever serviced your account, just for starters. Contact me if you want my help. By the way, I sued Equifax for reporting me I5 with a zero balance. I cannot disclose the terms of the settlement, but let me just say I was pleased with the outcome. This also is something I can help you with.
The ombudsman is an informal, non-legal channel. They act like they want to help, but in the end its a frustrating run-around. The only thing student loan servicers ever really pay much attention to is a nice big fat lawsuit. Even then, they don't get too excited until just before the trial. Actually, I did have quite a bit of fun with them when I deposed five of their employees. Yeah. That was cool. (16 hours worth of court reported and videotaped testimony).
I would try to dispute the representation of your status under the Privacy Act of 1974. There is a requirement that the DOE must perform an investigation of the accuracy of any information kept on you in a file if you request it.
Mozilla, I love hearing about succesful lawsuits! Congrats! A couple of questions: How long did it take from filing in USD Ct before you got a trial date? I am filing against Equifax as soon as I receive 2 documents from a creditor proving that they failed to update my record with that creditor, even after the creditor sent them updates. You can't disclose the terms of the settlement, however, what amount did you ask for in your complaint? Did you have to do pre-trial conferences, etc.? I am going for violations of the FCRA and for defamation. I am going to ask for $1 million on the defamation claim. I may be able to get some media attention after I file. Thank you. cariba
Hmm. I would say that discovery lasted about a year. Mediation occured 3 months prior to the schuled trial at the end of discovery. A settlement was reached a couple of weeks after the mediation conference. "pre-trial conference" could mean different things in different courts. In the complaint I included a variety of different claims. The basis of my complaint was interference with economic opportunity to expand my business, which I calculated at about 350,000. Intentional infliction of emotional distress was listed in the complaint at about 350,000. With treble damages under the Washington Consumer Protection Act, I figured a total claim of 2.1 million plus legal fees. But, you know, you never get that much. But, its fun to put it all in. The truth is, on paper I really may have lost the 350,000.00 economic opportunity, because I actually made an effort to expand my business which was frustrated directly because of the derogatory credit in my credit file. If you have a small business and you are serious about an economic intereference claim, get a forensic accountant early on to figure damages, otherwise forget that part of your claim. If you wait too long the forensic analysts calculations are useless and inadmissable.
You probably already know this. But, the creditor is not liable for reporting false information to CRA's except under two scenarios. 1) They must investigate a dispute made by a borrower through a CRA (usually the CRA sends what is called a Consumer Dispute Verification Form that must be filled out and returned to the CRA), and 2) update the results of the investigation to all thre CRA's. Do not sue all three CRA's in a lawsuit ever. Usually a CRA will take you offline if you sue them, until the matter is resolved. This means you have no credit with that CRA. A creditor will have to check your credit with one or both of the other two CRA's. I was turned down for credit because creditor's couldn't pull my Equifax file due to the lawsuit. Also, frequently creditors fail to update the results of the investigation to the other CRA's if you dispute it through a single CRA. This is a good little trick for you. Only sue one CRA. What you have to realize is that no liability exists against the creditor unless you made the dispute through at least one CRA . Even then, no requirement exists for them to update correct information, only to do an investigation and update the results to the other CRA's. The responsibility falls directly on the CRA to hold accurate and complete information in their file on you (and then only if you dispute the information to them and provide some sort of convincing documentation that the creditor is wrong). You can only win on a defamation charge if the FCRA violation was willful, which is tough to prove. Good luck.
Mozilla, Thanks for the information. The FCRA violation was willful. You ignore 3 UDF updates, when the consumer complains, you send back a verification dated 1 or 2 days after? No EQ did not do their job. Poor credit is detrimental to me in my profession in obtaining licensing. I do not think I will have a hard time proving it. I am praying that I can file and move toward settlement quickly, possibly using some type of ADR. cariba
In my lawsuit, the issue was raised as to whether or not a CRA must respond to a UDF (i.e. from a creditor). The FCRA only seems to set up a provision requiring the CRA to respond to a borrower dispute made to the CRA directly (not through a creditor). Also, multiple violations by a CRA are considered as a single violation for applying the $1000.00 statutory damages provision. You will have to prove actual damages to get more than that. Get yourself a good forensic accountant.
"I also took a bite out of Equifax for reporting me I5, but with a zero balance." Are you saying that they can't report both? What about reporting I9 when they have been paid in full? The runaround I get from CSC is that the account shows zero balance but the status has not been changed. Somehow this is supposed to be accurate and fair? Should I not be bothered by it? For my latest mortgage application the underwriting report is very clear about listing my charged off debt as a major derogitory, yet I have NO charged off debt. Sorry, I know this isn't entirely related to this thread. It does, however, deal with a student loan...
Mozilla, I tried emailing you but you are not on . anyway, I am preparing to sue equifax. one of the major items is my studentl loan. it is reporting as 120 days late but also paid in full I5. it also shows loan date of 9/95 when i have papers and promissary not showing 94 (which means it should have been deleted) any help on this matter would be appreciated, especially regarding documentation. i want to file tomorrow.
Almost the same situation here. Equifax and US Dept of ED are reporting me CURRENTLY 120+ days past due, when the loan has been paid off forever it seems. It's reporting a zero balance, and DoLA as 5/1997. How can it be paid and currently past due? I may need an angle if what I'm trying now doesn't work. I hope you can help.
I also would like to talk to you - but cannot email you. My email is turned on - so please contact me? Although, you settled, right? Not actually "won" (though it IS INDEED A VICTORY). I only point that out - since we can't site case law using your case. Still, this is wonderful and I'd like to know more as I am fighting close to the same issue. Mommy2cats
