My process on Rehabilitation with my defaulted school loans

Jan 292011
 

I’m brand spanking new to this forum and I have to say, its freaking amazing. It’s comforting to know that I’m not alone on the issue of trying to fix/rebuild my credit. Well, here’s my 2cents on the Rehabilitation Program for defaulted school loans. Any advise, tips or comments to help me on my situation is more then welcomed as well.


Back in June of 2008 I went into default with USA Funds, Inc. who was my creditor for my school loan. I entered to do a Rehab program with General Revenue Corporation (GRC) and completed it with no problem. 2 months later, my defaults with USA Funds were deleted off my credit record BUT my prior negative reports with Sallie Mae, before USA Funds took over, were still showing delinquencies. So I contacted Sallie Mae, their response was, “WE CANNOT DELETE ANY NEGATIVE/DELINQUENCIES PRIOR TO YOUR DEFAULT DUE TO SALLIE MAE’S POLICY BUT YOUR DEFAULT STATUS WERE DELETED.” Which then got me REALLY confused and feeling cheated because before I agreed to do the Rehab, I was told by GRC, that my default AND my negative/delinquencies prior to default were GOING to be deleted and brought up to a clean, paid on time records.


So I called Sallie Mae and requested a letter that states my completion of the Rehab Program and as soon as the letter arrived the letter stated this:


Dear **********,


Sallie Mae, Inc. is a servicer of student loans for national and state guarantee agencies.  We are pleased to inform you that you have successfully completed your rehabilitation program as of 06/24/2010. Your education loan(s) listed below was purchased by the lender and is no longer in default.


The guarantor, United Student Aid Funds, Inc., will notify the national credit bureaus to delete the defaulted status. As a result of your rehabilitation, the lender/servicer that maintained the loan(s) prior to this default will be notified. It will be their responsibility to correct any adverse credit reporting that they may have made.

 

The letter quotes, “The guarantor, United Student Aid Funds, Inc., will notify the national credit bureaus to delete the defaulted status.” which USA FUNDS, Inc, held their side of the bargain and deleted them asap! BUT this portion of the letter, quotes, “As a result of your rehabilitation, the lender/servicer that maintained the loan(s) prior to this default will be notified. It will be their responsibility to correct any adverse credit reporting that they may have made.” Now, is it not Sallie Mae’s responsibility to fix my past adverse (negative/delinquencies) reporting as the letter from USA Funds, Inc., Quotes? Sallie Mae were my original school loan creditor before transferring over to USA Funds, Inc. 

 

So I did some research and found this:

 

“Because the statute specifically refers to a stream of 12 payments as determined by the institution, the institution must work with the borrower to determine a payment amount that is appropriate. The statute does not require a signed rehabilitation agreement. In accordance with the 1998 Amendments, once the loan is rehabilitated (after the 12th payment has been made), the institution or its servicer must request that any credit bureau to which the defaulted loan was reported remove the default from the borrower’s credit history.  The borrower is brought current and is no longer considered to be delinquent or in default. Removing the default is consistent with the requirements of the Fair Credit Reporting Act (FCRA), which requires that an institution correct and update the information it furnishes to a credit reporting agency.”

 

- The Higher Education Act

 Section 674.39 Loan Rehabilitation

 

For full article of the law that states this claim, Google the above source, as I lost the link to the site. Sorry :(


So, in your guys opinion, does it seem like Sallie Mae is obligated to make the changes to my credit report? and I have the upper hand? If so, how should I approach this to where they can’t argue back and fix the issues.


I hope what I provided is of some help to others in a similar situation and if I find out anything else, ill be sure to post it up here for everyone.


Any advise, legal advise, tips or comments will be greatly appreciated. Thanks :)

Started rebuilding process today

Jan 282011
 

I started the credit repair process today and  thought i should start a log so here goes. Today I sent out a gw letter for first premier for a paid charge off even though it seems as there are not alot of people who have had success with them, a pfd to suncoast schools fcu, and cmrrr dv letters to continental finance,pinnacle financial group,and online collections.Also if anyone wants to chime in im wondering why my equifax could be so low the accts on there are as follows:

 

 

Paid auto loan no missed payments (5800)

Paid as agreed lease (2340 a month for 2,5yrs)

5 credit cards no more than 7%balances (had 3 cards for 2yrs and other 2 for 1yr)

paid student loan no missed payments(the loan was only 6000)

auto loan pays as agreed(just got truck 1 yr ago)

paid charge off for $200 (2 yrs since dola)

collection $634 (dola 12/2006 just started reporting 2/2010)

charge off  for original balance of $1443 ( i have paid off $500 since it was charged off.also it reports as open)

 

Missing collections

Jan 282011
 

So I pulled my TU and EQ to see what I needed to work on and to my shock there’s about 3 collection accounts missing from both of them. Not that im complaining if they are in fact gone (none have reached the 7 year mark), but is it possible they’re “hiding” in my experian report? At one point they were on all 3 reports.

Contact Information Request

Jan 282011
 

Working on requesting the following creditors to remove COs from my report.  Any helpful information PM’ed to me would be appreciated!!

 

Also looking to remove a tax lien from DE State, if anyone has help/suggestions.

 

CAPITAL ONE  

FIRST PREMIER  

HOUSEHOLD CREDIT SERVICES  

MACY’S/DSNB  

MIDLAND CREDIT MANAGEMENT  

 

Thanks!!!

Should I see a bump at 1 year of no lates?

Jan 282011
 

Looking to refinance/rehab our house thru an FHA 203K, latest scores are 591/648/???

 

Would like to get this approved some time during the spring/summer.. Here are my problems:

 

1. High utlization, currently around 66% (24K/ 36K limits) and dropping by about 2% each month..

 

2. A ton of lates, mid 2006 ,on everything, mortgage, CC’s, auto… 30, 60 and 90 day lates due to a job loss..

 

3. Goofed in Jan, Feb, Mar 2010 and ended up with  lates on 3 cards, I was doing bills and my husband took over, he didn’t know about the 3 cards on paperless.. 2 cards have 3 30′s, 1 card has 1 30 and 2 60′s…

 

 Can I expect a bump after March 2011 when I have no lates in 1 year? Staying the course, can I hit 640 as a mid by summer???

 

 TU already there, obviously no idea what EX is.. EQ (thru Scorewatch) hasn’t budged in 3 months..

Anyone have luck with PFD over the phone?

Jan 282011
 

I’ve been calling a few places to get a PFD over the phone for some old CA’s and am having no luck at all. 

 

The best they will offer is a “paid in full” status on my credit report, and some of them wont even take credit/debit cards over the phone!

 

None have even offered a settlement amount.

 

Whats going on here?  Is this normal?

Re: Stocks Slide over Egyptian Concerns

Jan 282011
 

Unrest leads to uncertainty, uncertainty leads to anger, and anger leads to the darkside. Yoda says uncertainty is bad for the market, making investors pull their money out, when they pull their money out, the market goes down.

What happened?

Jan 282011
 

So a week or two ago I had two collections left on my credit report, both paid and my score was 634.  Today I check my credit report for transunion, after a goodwill success from both of the collections and my score dropped to 614.  So all baddies gone off TU and score drops?  Why?

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