I am currently going through a miserable experience with a creditor and debt collector. In 2004 I completed my college education and consolidated all of my student loans through Nelnet. In 2005 (or so) I started to get calls from debt collectors stating that I was delinquent on my loan repayment. I explained the situation, that I had made all of my timely payments through Nelnet and, before I would pay anything else, I would need to see some proof of the debt. I never received any proof of the debt and this conversation reoccurred several times for the next five years.
In 2011 I wanted to buy my (wife’s) dream home. It was a significant purchase and the bankers I talked with indicated I needed to clear up the student loan issue to be approved. I reached out to the original creditor and the debt collector and begged for some proof of the loan. They then provided me with a loan application (nothing to indicate that the application was approved or that any funds were ever dispersed to me). While I was not comfortable with the proof, I knew that fighting it out in court would take longer than I was willing to take. So, I was very purposeful in my conversations with the original creditor and the debt collector to make sure that the issue would be cleared on my credit report if I paid the full value of the (alleged) loan. I also recorded the conversations I had with the original creditor and the debt collector.
I paid the original loan amount and (if you didn’t see this coming) the original creditor refused to update my credit report. And, even after providing the credit reporting agencies with proof that the debt was paid, they also refused to update my credit report.
To make matters worse, after the debt was paid, I received a notice from the debt collector that several thousands of dollars had been excused. I immediately contacted the debt collector and requested documentation that would support their amount due, including documentation where I agreed to a specific interest rate. No response from the debt collector.
So, I am now arguing it out with the IRS regarding any additional taxes that may be due. And, even though I paid the debt two years ago, my credit report has not yet been updated.
It is simply ridiculous than any business would have this much power to have such a negative impact on an individual without any documentation to back it up. Any creditor should be required to provide certain documentation prior to making a negative credit reporting and there should be significant consequences for any creditor/debt collector that pursues a debt without having the required documentation.
I am currently going through a miserable experience with a creditor and debt collector. In 2004 I completed my college education and consolidated all of my student loans through Nelnet. In 2005 (or so) I started to get calls from debt collectors stating that I was delinquent on my loan repayment. I explained the situation, that I had made all of my timely payments through Nelnet and, before I would pay anything else, I would need to see some proof of the debt. I never received any proof of the debt and this conversation reoccurred several times for the next five years.
In 2011 I wanted to buy my (wife’s) dream home. It was a significant purchase and the bankers I talked with indicated I needed to clear up the student loan issue to be approved. I reached out to the original creditor and the debt collector and begged for some proof of the loan. They then provided me with a loan application (nothing to indicate that the application was approved or that any funds were ever dispersed to me). While I was not comfortable with the proof, I knew that fighting it out in court would take longer than I was willing to take. So, I was very purposeful in my conversations with the original creditor and the debt collector to make sure that the issue would be cleared on my credit report if I paid the full value of the (alleged) loan. I also recorded the conversations I had with the original creditor and the debt collector.
I paid the original loan amount and (if you didn’t see this coming) the original creditor refused to update my credit report. And, even after providing the credit reporting agencies with proof that the debt was paid, they also refused to update my credit report.
I was originally applying for a “jumbo” loan for my home purchase and I was told that I did not qualify (based on the student loan entry on my credit report). So, I was forced to cash in my life savings in order to come up with a huge down payment. I bought the home in June of 2012 and the stock options/restricted stock that I was force to sell would be worth twice what I realized on the sale.
The impact is that I missed out on the home I really wanted (it was in foreclosure and sold for pennies on the dollar); it would be worth at least $100k more today than the sales price. And, I was forced to take a huge loss on my stock options/restricted stock due to the inaccurate reporting. In my opinion, my actual damages are around $200k.
Things like this should not happen to anyone. I do not come from money (the family farm went under two years after I left for college). I busted my butt to get ahead, always working 2-3 jobs to get through college and I acquired significant student loan debt. But, after working that hard for so many years (four years of undergrad and seven years of post-secondary (part time)), it is inexcusable that anyone should have to go through this kind of abuse.
Based on my experiences, here are a few changes that need to be made to bring some sort of balance to the power inequity between creditors/debt collectors and debtors:
1. We need greater accountability for creditors and debt collectors. At a minimum, creditors and debt collectors need to be accountable for all actual damages and attorney’s fees. Better yet, creditors and debt collectors should be accountable for punitive damages (or some hefty, minimum penalty as well).
2. When an account is in dispute, there should be some minimally invasive/expensive process that a debtor can use to try and remedy the situation. There should be an easy to use form that a debtor could use to dispute a debt. Once filed correctly, it should be against the law for any creditor/debt collector to attempt to collect on the debt.
3. When an account is in dispute, the creditor should not be allowed to pass it off to debt collector after debt collector for year-after-year harassment.
4. The credit reporting agencies should also be liable for incorrect information reported on a credit report.
5. There should be a national registry of attorneys that are competent to handle credit dispute issues. I’m not sure of the evaluation criteria or who would perform the evaluation, but there should be a way to guide a debtor involved in one of these disputes.
Anything you can do to help would be appreciated. I continue to be turned down for load applications due to this inaccurate reporting.
Thanks,
Jason
Jason
1
I am currently going through a miserable experience with a creditor and debt collector. In 2004 I completed my college education and consolidated all of my student loans through Nelnet. In 2005 (or so) I started to get calls from debt collectors stating that I was delinquent on my loan repayment. I explained the situation, that I had made all of my timely payments through Nelnet and, before I would pay anything else, I would need to see some proof of the debt. I never received any proof of the debt and this conversation reoccurred several times for the next five years. In 2011 I wanted to buy my (wife’s) dream home. It was a significant purchase and the bankers I talked with indicated I needed to clear up the student loan issue to be approved. I reached out to the original creditor and the debt collector and begged for some proof of the loan. They then provided me with a loan application (nothing to indicate that the application was approved or that any funds were ever dispersed to me). While I was not comfortable with the proof, I knew that fighting it out in court would take longer than I was willing to take. So, I was very purposeful in my conversations with the original creditor and the debt collector to make sure that the issue would be cleared on my credit report if I paid the full value of the (alleged) loan. I also recorded the conversations I had with the original creditor and the debt collector. I paid the original loan amount and (if you didn’t see this coming) the original creditor refused to update my credit report. And, even after providing the credit reporting agencies with proof that the debt was paid, they also refused to update my credit report. To make matters worse, after the debt was paid, I received a notice from the debt collector that several thousands of dollars had been excused. I immediately contacted the debt collector and requested documentation that would support their amount due, including documentation where I agreed to a specific interest rate. No response from the debt collector. So, I am now arguing it out with the IRS regarding any additional taxes that may be due. And, even though I paid the debt two years ago, my credit report has not yet been updated. It is simply ridiculous than any business would have this much power to have such a negative impact on an individual without any documentation to back it up. Any creditor should be required to provide certain documentation prior to making a negative credit reporting and there should be significant consequences for any creditor/debt collector that pursues a debt without having the required documentation.
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Jason
2
I am currently going through a miserable experience with a creditor and debt collector. In 2004 I completed my college education and consolidated all of my student loans through Nelnet. In 2005 (or so) I started to get calls from debt collectors stating that I was delinquent on my loan repayment. I explained the situation, that I had made all of my timely payments through Nelnet and, before I would pay anything else, I would need to see some proof of the debt. I never received any proof of the debt and this conversation reoccurred several times for the next five years. In 2011 I wanted to buy my (wife’s) dream home. It was a significant purchase and the bankers I talked with indicated I needed to clear up the student loan issue to be approved. I reached out to the original creditor and the debt collector and begged for some proof of the loan. They then provided me with a loan application (nothing to indicate that the application was approved or that any funds were ever dispersed to me). While I was not comfortable with the proof, I knew that fighting it out in court would take longer than I was willing to take. So, I was very purposeful in my conversations with the original creditor and the debt collector to make sure that the issue would be cleared on my credit report if I paid the full value of the (alleged) loan. I also recorded the conversations I had with the original creditor and the debt collector. I paid the original loan amount and (if you didn’t see this coming) the original creditor refused to update my credit report. And, even after providing the credit reporting agencies with proof that the debt was paid, they also refused to update my credit report. I was originally applying for a “jumbo” loan for my home purchase and I was told that I did not qualify (based on the student loan entry on my credit report). So, I was forced to cash in my life savings in order to come up with a huge down payment. I bought the home in June of 2012 and the stock options/restricted stock that I was force to sell would be worth twice what I realized on the sale. The impact is that I missed out on the home I really wanted (it was in foreclosure and sold for pennies on the dollar); it would be worth at least $100k more today than the sales price. And, I was forced to take a huge loss on my stock options/restricted stock due to the inaccurate reporting. In my opinion, my actual damages are around $200k. Things like this should not happen to anyone. I do not come from money (the family farm went under two years after I left for college). I busted my butt to get ahead, always working 2-3 jobs to get through college and I acquired significant student loan debt. But, after working that hard for so many years (four years of undergrad and seven years of post-secondary (part time)), it is inexcusable that anyone should have to go through this kind of abuse. Based on my experiences, here are a few changes that need to be made to bring some sort of balance to the power inequity between creditors/debt collectors and debtors: 1. We need greater accountability for creditors and debt collectors. At a minimum, creditors and debt collectors need to be accountable for all actual damages and attorney’s fees. Better yet, creditors and debt collectors should be accountable for punitive damages (or some hefty, minimum penalty as well). 2. When an account is in dispute, there should be some minimally invasive/expensive process that a debtor can use to try and remedy the situation. There should be an easy to use form that a debtor could use to dispute a debt. Once filed correctly, it should be against the law for any creditor/debt collector to attempt to collect on the debt. 3. When an account is in dispute, the creditor should not be allowed to pass it off to debt collector after debt collector for year-after-year harassment. 4. The credit reporting agencies should also be liable for incorrect information reported on a credit report. 5. There should be a national registry of attorneys that are competent to handle credit dispute issues. I’m not sure of the evaluation criteria or who would perform the evaluation, but there should be a way to guide a debtor involved in one of these disputes. Anything you can do to help would be appreciated. I continue to be turned down for load applications due to this inaccurate reporting. Thanks, Jason
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