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Crashwave

Fair Credit Reporting Laws

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Hello

I need help/information on laws/regs on what and how creditors can report to credit agencies. 
Is it legal for the creditor to itemize their reports to credit agencies if they only send one monthly statement. 
Specifically about student loans. In my case I was waiting for disability discharge approval and was late on two statement they reported to agencies as 8 individual accounts each late.
If we get one statement, one account, one total amount due monthly is it legal for them to report each individual loan separately to agency.
I was not late paying 8 statements. How is this FAIR credit reporting? I can't even rent an apartment because it looks like I was late paying 8 separate accounts.

Any ADVICE appreciated. 

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Read the Fair Credit Reporting Act and let us know if you have any more specific questions.  If you do have further questions, please explain what "itemize [a] report to credit agencies" means.  Your post is also not clear how being late on two statements would result in a report of eight accounts being late.  Regardless, the FCRA explains the procedure for disputing a credit report.

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Even though you were billed one statement, if you had 8 separate loans and failed to pay them on time then you missed payments on 8 separate loans and the creditor may report that you were late on 8 separate loans. Since what the creditor is reporting is true, how is that “unfair”? Why should it make a difference that the creditor combined the billing for the 8 loans into one piece of mail rather than sending you 8 separate pieces of mail? The main thing that the federal Fair Credit Reporting Act (FCRA) requires of those furnishing information to credit bureaus is that the information they provide to the credit bureau must be accurate. “A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.” FCRA § 623(a)(1)(A), 5 U.S.C. § 1681s-2(a)(1)(A). Thus, so long as the information was accurate, the lender met its obligation under the law. So if it accurately reported that you had 8 loan accounts with it and you were late on all of them the lender has met what the law requires. It is then up the user of the credit report to analyze the reports and decide what impact that has on their decision to do business with you. If the loans have now been discharged and you no longer owe them, make sure that the discharge is reflected on the credit report. That should improve your credit.

 

When you apply for a disability discharge on a student loan, you are still obligated to pay the loan up until the disability discharge is approved. So in not making those payments you took the risk that your credit would get damaged. You may explain why you didn’t make those late payments to future creditors and explain that all 8 loans with all with the same student lender and that may perhaps help improve their view of your credit.

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pg1067

I have read the Fair Credit reporting and disputed the report about being late on 8 account. What I wrote is exactly what is happening. FedLoan servicing sends out one statement every month regardless of how many loans there are. Then when late on the one statement they report late on everything in the one statement itemizing the loans separately though we are not billed separate statements. 

 

Tax_Counsel

“A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.” FCRA § 623(a)(1)(A), 5 U.S.C. § 1681s-2(a)(1)(A) is utterly vague. Reporting should only happen on what you are late on. Late on one statement one account is not late 8 bills. They send one statement with one payment due. So if I pay $10 on a $200 statement which loan does it go to? When a person goes to an emergency room and is billed for every that was done there yes it is itemized on the statement but they should not be allowed to itemize their reporting to agencies saying late for paying MRI, Roomstay, bandage, pain killer. 
Reporting is for paying or not pay a bill, a statement, an account with the creditor. If you have ONE account with the creditor and they send ONE bill it should not be reported multiple times no matter what is on the bill.In this case I believe the information is inaccurate since I was billed once and have only one actual account with creditor.
Is there anywhere that states exactly how/what they can/cannot report?

 

 

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You have not indicated whether all of your loans are from the same lender.  If there is more than one lender then it would be entirely proper to report the default on each loan separately.  The entity to which you made your payment in probably a loan servicer, not a primary lender or creditor.

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1 hour ago, Crashwave said:

pg1067

I have read the Fair Credit reporting and disputed the report about being late on 8 account. What I wrote is exactly what is happening.

 

Neither your original post nor your follow up post address the following:

 

2 hours ago, pg1067 said:

Your post is also not clear how being late on two statements would result in a report of eight accounts being late.

 

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2 hours ago, Crashwave said:

FedLoan servicing sends out one statement every month regardless of how many loans there are. Then when late on the one statement they report late on everything in the one statement itemizing the loans separately though we are not billed separate statements. 

 

I think you aren't going to accept anything that two lawyers tell you and you're just going to keep ranting about it with no end in sight.

 

Answer me this:

 

You borrowed money on 8 different occasions, right?

 

You have 8 different numbered loan accounts showing on your credit report, each with a different loan date and amount borrowed, right?

 

You get a statement every month showing all 8 accounts, their account numbers, and their current balances, right?

 

And the statement allows you to make one payment to cover all the loans, right/

 

2 hours ago, Crashwave said:

Reporting should only happen on what you are late on. Late on one statement one account is not late 8 bills

 

When you look at your credit report do you see a 9th item showing this monthly statement or do you just have 8 accounts showing on your credit report?

 

2 hours ago, Crashwave said:

So if I pay $10 on a $200 statement which loan does it go to?

 

I don't know. $1.25 to each loan. Or maybe it's prorated based on the balances. You tell me. You ought to be able to figure it out by looking at the changes in each of the balances each month.

 

2 hours ago, Crashwave said:

When a person goes to an emergency room and is billed for every that was done there yes it is itemized on the statement but they should not be allowed to itemize their reporting to agencies saying late for paying MRI, Roomstay, bandage, pain killer. 

 

Bad example, irrelevant. Not even close to a valid comparison but no surprise that you came up with it.

 

2 hours ago, Crashwave said:

If you have ONE account with the creditor and they send ONE bill it should not be reported multiple times no matter what is on the bill

 

What you aren't understanding (and apparently don't want to) is that you don't have ONE account, you have EIGHT accounts and all your ranting isn't going to change that.

 

 

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8 hours ago, Crashwave said:

 If you have ONE account with the creditor and they send ONE bill it should not be reported multiple times no matter what is on the bill.In this case I believe the information is inaccurate since I was billed once and have only one actual account with creditor.

 

Let's clarify one thing here, because it is important. Put aside the fact that the creditor sends just one bill. That doesn’t matter here. If you had eight accounts with the same creditor then the creditor could send you eight separate bills to collect those accounts or the creditor could send you one bill each month to combine the payments for all the accounts together. Either way, it would not change the fact that you have eight separate accounts with the creditor and that the failure to pay the bill, whether it be failure to pay the eight separate bills or the one combined bill is still the failure to pay eight accounts (loans) and each may be reported separately.  The flip side of that is that if you have just one account with the creditor, then if it sends you eight bills during the month to collect that one account and you fail to pay any of them the creditor could not report eight separate delinquencies because despite the number of bills they sent you for the month you were still only late paying one account. This is why the number of bills you get does not matter.

 

It is instead the number of accounts (debts/loans) you have with the creditor that matters. The FCRA itself focuses on accounts, as indicated by the following section that requires the creditor to furnish the date of delinquency for delinquent debts reported to credit bureaus:

 

“(5) Duty to Provide Notice of Delinquency of Accounts

(A) In general

A person who furnishes information to a consumer reporting agency regarding a delinquent account being placed for collection, charged to profit or loss, or subjected to any similar action shall, not later than 90 days after furnishing the information, notify the agency of the date of delinquency on the account, which shall be the month and year of the commencement of the delinquency on the account that immediately preceded the action.” 15 U.S.C. § 1681s-2(a)(5)(A)(italics added).

 

So the question is, do you really have eight accounts or one? In order to determine that, answer the following questions:  Did you take out eight separate student loans? Are there eight separate balances due? If the answer answer to each of these is yes, then you clearly have eight separate accounts with that one creditor, and the creditor may report each one separately to the credit bureaus. On the other hand, if you ever only took out one student loan or if you formally consolidated all your separate student loans into one big loan and thus have just one amount outstanding then you have just one account and the lender may report you as delinquent on just the one loan that you have. Which is it? Again, it does not matter whether they bill you separately for each account or send you a combined bill for all of them. It is not the number of bills they send you that matters. What matters is how many accounts you have, i.e. how many separate loans you took out. In general, with student loans you take out a new loan each semester, and each of those is a separate loan and a separate account even though they may all be with the same lender.

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Ok so there are 8 loans each for a different amount with the same fedloan servicing account number

So 8 counts 90 days late but the whole account was discharged and 0 balance

These same 8 loans are also in there again each under one Ed services account and current, noit late 0 balance.

 

I think it is absolutely ridiculous that a company can report multiple time if you only get monthly statement, so I guess I am ranting. Students get loans to make a better future and these loan servicing companies are screwing any chance of that.

 

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8 hours ago, adjusterjack said:

 

Discharged?

 

What do you mean by discharged?

Under certain conditions, a federal student loan borrower may be relieved from further repayment obligations by having their federal student loans discharged. Discharge provisions are available under both the Direct Loan and FFEL programs. Loan discharge differs from forgiveness. https://myfedloan.org/borrowers/forgiveness-discharge/

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On 4/27/2017 at 0:42 PM, Crashwave said:

In my case I was waiting for disability discharge approval and was late on two statement they reported to agencies as 8 individual accounts each late.

 

The poster stated in his initial post that he was awaiting a determination for a disability discharge and was late for payments during the waiting period.  Presumably the discharge application was favorable.

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I am also awaiting a discharge from my student loans (55,000) due to becoming permanently disabled and while I wait they notified my loan holder and deferred my payments. It doesn't make sense that they didn't do the same for you?

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