Experian validated loan that was sold.

[phuckenet]

Experian just validated my Student Loans with Nelnet that were sold to the State Garauntee Agency in 1998. The loans were sold 4 times and are now a single combined loan, it shows up 10 times on my CR. The Dept. of ED (who had no knowledge of these loans in thier system) suggested I dv with the CRA's as not mine on the old accounts, so I did.

I just signed and returned my loan rehabilitation letter after my 12 on time payments. So I am not worried about the derog's on my credit report made by the Garauntee Agency as they should be deleted in a month. However I have to get the derogatory accounts listed by previous holders of the loan removed myself. Since the GA owns my loan shouldn't they be the only one that can have a derogatory listing on my CR? Even if the timelines are accurate on most of the entries, it doesn't seem fair that I have 7 negatives (5 derog, 2 delq, and 3 cur) listed in my credit summary all for what is now 1 loan (soon to be cur).
Should I dispute this item again as not mine with the CRA's? now or wait 60 days? OR should I dispute at a duplicate? OR go directly to the previous loan holders?

side note: Experian did get a CO from a bogus cc acount ('98) deleted and my score dropped 12 points and I've been current on everything.
This sux!

[kb9tbq]

Boy, you are really having a time of it...

Past collection agencies can continue to report if the debt has been sold from one to the next, but they must be closed zero balance reporting since they no longer hold the account - technically this is how it works.

But what you can do is continue to dispute ... starting with not mine then if verified.. start picking at the details like you mentioned.. try to duplicate reporting... incorrect status.. and such. Also each time ask that the remedy be removal and eventually you should bump them off.

:twisted:

[phuckenet]

Thanks again kb9tbq! The HEA (Higher ED Act) states all mentions of the defaulted student loan are to be removed from CR and that CRA's must facilitate this after rehabilitation. I think I'll try using that if I can starting next month. Thanks alot you're the first person to explain what was happening. Once this and the other collection are deleted I'll be in good shape.

Boy, you are really having a time of it...

Past collection agencies can continue to report if the debt has been sold from one to the next, but they must be closed zero balance reporting since they no longer hold the account - technically this is how it works.

But what you can do is continue to dispute ... starting with not mine then if verified.. start picking at the details like you mentioned.. try to duplicate reporting... incorrect status.. and such. Also each time ask that the remedy be removal and eventually you should bump them off.

:twisted:

[kb9tbq]

The HEA (Higher ED Act) states all mentions of the defaulted student loan are to be removed from CR and that CRA's must facilitate this after rehabilitation

That is a new one on me... I had a defaulted student loan years ago - but it had been a totally different out come since it was forgiven. So I had not known they where in the business of negotiating on the reporting side.

Stick to them like glue if you have to, to honor this.

--------------------------------------------------------------------------------

There is one difference in reporting that I mentioned earlier but you said the past collection agencies had purchased the debt.

IF an original creditor asigns the debt... then calls it back or asigns another collection agencie to work the collection and reporting of said debt... then each time one is recalled or pulled back that collection agency must remove the credit reporting on the account.

But this don't apply when they have actually owned the debt at one point.. then they have a right to continue reporting.. just that it must be accurate.

[phuckenet]

The HEA was ammended in July 2000. You must be given an opportunity to rehab (12 mo's of on time payments of at least 1-2% of the principle) your 1st time defaulted student loans. Section 674.39 also capped the collection fees at 24%, and explicitly states "Instruct any credit bureau to which the default was reported to remove the default from the borrower's credit history." I also read in a D of ED comments PDF on the 2000 ammendments to the HEA, that CRA's must provide a means for this, I'll try and find it. The HEA is not clear about previous holders of the loan but if they all have closed/transferred charge off status which pretty much means default, I would think it should be covered.
The feds realized that no one can afford to pay 8-20K in full and 35% collection fees would likely result in repeated default.

http://ifap.ed.gov/regcomps/june12000part67439.html
http://ifap.ed.gov/sfahandbooks/attachments/0304Vol5Ch8.pdf

[Ravenous Wolf]

Section 674.39 also capped the collection fees at 24%, and explicitly states "Instruct any credit bureau to which the default was reported to remove the default from the borrower's credit history." I also read in a D of ED comments PDF on the 2000 ammendments to the HEA, that CRA's must provide a means for this, I'll try and find it.

I wish all of this was available back in my day.

My credit sucked big green donkey [EXPLETIVE DELETED] with all the Sallie Mae charge offs, defaults, and other garbage.

Although I did remove everything (except for one minor pesky item on CSC) by old fashion credit repair.