As some of you may remember, I have recently finished rehabilitating my student loans with the guarantor. I have spoken to someone with the guarantor and she told me that all negative information regarding my accounts with them will be deleted when they update at the end of the month. Yeah! But...the original lender is also reporting...true it reports as Transferred or Sold, but it is still listed as an I9 on Equifax. Equifax states that because it is listed as Transferred or Sold they can legitimately continue to report it for 7 years! I thought that ALL negative info was supposed to be deleted? Since I have 2 accounts it looks like there are 4 bad ones, once the guarantor updates there will be 2 good and 2 bad. It just seems as if rehab is pointless if the original accounts can remain. I know that someone once said that the intent of the law was that all info was to be deleted. Does anyone have the actual statute that I could refer to when contacting the CRA? I want to get a retail card soon since that is one of my 4 reasons for a low score, but with these accounts I don't think it is possible. Thanks Larissa
I just finished the same crap... You need to find out the date of last activity. They tried to say that the transferred my loan in 5/98 and that was activity. DLA is the date that it became due..so find that out and maybe you can go on this angle.
Larissa, I think Marci is an expert in this area. I seem to remember a recent post where she talked about erasing the original student loan negatives. Try a search. EdG
Larissa, The portion of the Higher Education Act that I communicated to the CRA reps can be found at http://www.carreonandassociates.com/stuloanrehabact.htm and reads as follows: "Section 674.39 Loan Rehabilitation REHABILITATION OF LOANS (A) IN GENERAL- If the borrower of a loan made under this part who has defaulted on the loan makes 12 on time, consecutive, monthly payments of amounts owed on the loan, as determined by the institution, or by the Secretary in the case of a loan held by the Secretary, the loan shall be considered rehabilitated, and the institution that made that loan (or the Secretary, in the case of a loan held by the Secretary) shall request that any credit bureau organization or credit reporting agency to which the default was reported remove the default from the borrower's credit history." - emphasis mine As I told you in the previous thread, I used a three way approach - all at the same time. 1. I told the CRA rep at TU and Equifax that normal laws allowing two different creditors to report the same delinquency did not count in this case because the HEA pre-empted that allowance and required the entries of the servicer who *made the loan* to be deleted. The reps initiated the dispute for me against USA Group. 2. I called the servicer actually doing the rehabilitation, ASA, and asked them to ask USA Group to remove its entries. ASA agreed that they should remove the entries and said they would call USA Group. 3. I called the DOE Ombudsman's office, got a great specialist, who said that my complaint was a good one and would have to research the law. I told him I was in contact with Pamela Moran on this issue as well... 4. Before I got a specialist I was already talking to Pamela Moran via telephone and e-mail. She assured me that the HEA covered original servicers, as well, and though they did not HAVE to comply - in keeping with the spirit of the law - they should. 5. The specialist called me back, said that he had been in touch with Pam Moran, and USA Group and that he got USA to agree to delete their entries. He said that the HEA needed to be clarified to specify that ALL loans, including those from original servicers, were to be deleted after rehabilitation. 6. The NEXT day I got an update from the CRAs showing the USA Group deletions. I don't know what worked, but I'm glad it did.
Thanks again marci, I am going to draft another letter to equifax quoting the part of the law that you just gave me and see what they have to say about that. My turn around with EQ is short because they have a local affiliate here, so I usually get an answer within a week. I have already talked to the servicer about it and they say there is nothing they can do to get the original lender to delete. I will ask EQ for the contact info for the original lender and contact them as well. Then if that does not work I guess I need to go to the DOE. I really appreciate the help. Larissa
Great thread While you are preparing your letters go ahead and do an online dispute. My statement was "this is not correct please investigate" nothing else so far it has worked with all of the student loan tradelines they did not report to the CRA's last year. I dispute on all 3 CRAs and i just got 3 off! one more to go. I am now working with the idiots the 4 CA that has my loan. Thank god in a matter of months these M*&^%$#@&^#$S! will be out of my life.
