school loan issue

[kenobisan]

I have a former student loan account that was consolidated at one point post-graduation. I discovered that the loan agency had been reporting delinqeuncies on my account to the major credit reporting agencies. I sent them a letter affirming that my graduation date was post the delinquency and that they should delete the period in question for delinquency, since I had not graduated yet.

They sent a letter confirming that indeed they had recieved the graduation information, but were not going to remove the delinquencies because "they were true at the time they posted them to the agencies".

Since then, I have sent them a letter [certified mail], pointing to the statutes (mostly the FCRA language) that outlines their duty to reporting correct information.

So far, I have not seen any change in my credit reports. What should be my next course of action in forcing this loan agency into compliance?

 

[Michael Wechsler]

I'm not sure I understand what is going on. What does your graduation date have to do with the accuracy of whether you were delinquent on the loan? I guess the first question is, were there delinquencies, was the report ensuing afterwards accurate, and if it wasn't accurate exactly why not?

Additionally, what kind of agency was this? If it is an agency that is part of a federal bank your remedies might be different.

 

[kenobisan]

The reporting of the delinquencies was unknown to me. But, regardless, the information is incorrect, since their claim was of delinquencies while I was still in school.

Just as a statement of fact, I have never had any delinquencies on my accounts, and even started repayment well within the grace period following graduation.

Maybe, my statement wasn't clear: there is a 6 month grace period post graduation, but this moot too since the alleged delinquencies occured while I was in-school. All loans are in deferrment while in-school as well.

The inaccuracy stems from the stated fact that the reporting should have not even occured prior to graduation.
I want the loan agnecy to delete the inaccurate information, but so far they have reufes to acknowledge my inquiries
[from last message]
"They sent a letter confirming that indeed they had recieved the graduation information, but were not going to remove the delinquencies because "they were true at the time they posted them to the agencies". This means they claim that it is their right to keep the information on the credit report, because they thought it used to be correct. This is even though, they agree it is incorrect, but refuse to change the reporting.

The agency is Sallie-Mae

 

[Michael Wechsler]

What you need to do is send them a certified letter stating to them that it was not true at the time reported for the reasons you gave. You were within a grace period and thus the reporting was not true. See a press release below regarding Sallie Mae that I found at http://obemla.ed.gov/offices/OIG/invtreports/ma12001.htm
. Apparently they have had their share of issues. You need the certification to prove you sent and that they received the letter. Best to get return receipt as well.

You have it right. Federal law requires them to correct reports when it is discovered that they are inaccurate. You might as well state so and in the last sentence state that you hope they recognize and correct the errors in a timely fashion so that you will not have to take formal action.


PRESS RELEASE:
Boston, MA January 05, 2001

United States Courthouse, Suite 9200:
1 Courthouse Way
Boston, Massachusetts 02210


SALLIE MAE PAYS $3.4 MILLION TO SETTLE CIVIL FALSE CLAIMS ACT ALLEGATIONS

Boston, MA - United States Attorney Donald K. Stern today announced that Sallie Mae Servicing Corporation of Reston, Virginia ("Sallie Mae") has agreed to pay S3.4 million to the United States to settle civil False Claims Act allegations. The settlement stems from Sallie Mae's submission of claims for federal payments on hundreds of federally insured student loans, before Sallie Mae had taken the legally required steps to collect the loans.

Sallie Mae is the nation's largest services of federally insured student loans under the Federal Family Education Loan Program. Its activities include collecting loan payments and pursuing delinquent borrowers. Federal law requires that loan services like Sallie Mae make a certain number of "diligent efforts" to contact the borrower by telephone and mail prior to making a claim on the federal guaranty, and that an accurate collection history reflecting these diligent efforts be submitted with each claim to collect on the guaranty.

The United States alleges that, for the period July, 1994 through November. 1995, a Sallie Mae employee at its Loan Servicing Center in Waltham, Massachusetts made false call records on collection histories for thousands of delinquent loans he was responsible for pursuing. These records consisted of false reports that the employee had communicated with or attempted to communicate with delinquent borrowers. Sallie Mae then submitted claims for guaranty payments to various guaranty agencies on hundreds of loans on which its employee had made false call records. Alter the guaranty agencies reimbursed Sallie Man for the delinquent loans, the guaranty agencies then obtained reimbursement from the Department of Education.

The Settlement Agreement requires Sallie Mae to pay $3.4 million to the United States in multiple damages and penalties for the claims for federal payments which Sallie Mae has already submitted on loans affected by its employee's misconduct. In addition, it prohibits Sallie Mae from making any claims in the future on federal guarantees on $9.5 million in additional affected loans.

When it learned of the misconduct, Sallie Mae promptly terminated the employee at issue, reported the misconduct to the Department of Education, and has cooperated in this investigation. Sallie Mae has also taken corrective steps to ensure that similar misconduct cannot occur in the future.

U.S. Attorney Stern stated; "Misconduct like this threatens the integrity of the federally insured student loan program. The Department of Education was, in effect, making guarantee payments to Sallie Mae even though Sallie Mae had failed to take the legally required steps to collect from the borrower. We commend Sallie Mae for reporting this serious misconduct to federal authorities, and for accepting responsibility for the losses suffered by the Department of Education."

The case was investigated by agents from the Office of Inspector General of the Department of Education, and handled by First Assistant U.S. Attorney David S. Mackey and Assistant U.S. Attorney Susan M. Poswistilo.

Press Contact: Samantha Martin, (617) 748-3139

 

[kenobisan]

Actually, I have already sent them a certified letter. That is all set, and I have return receipt. I have already even quoted the proper statutes in my letter.

The question(s) are now:

1. Which court should I file?

2. Presentation of the case.
3. What's considered timely fashion. As of receipt, 3 weeks have past without contact.