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Foucault · Mar 27, 2007, 01:53 PM

I have had some loans to pay back to my college. Nothing big, but the payments started while I was still in grad school, and I had a hard time coming up with the money at the time. On 2 occasions I made my payments just after they were notifying me that they would refer me to a collection agency if I didn't pay (a last notice of sorts).

I got damage on my credit that severely limited my options when I searched for housing last year.

At this point I have kept up with all payments and managed to pay off the loan entirely (this month I will make the final payment).

My question is:

Since I will have paid off the whole debt, can I contact the school to tell them to have the damage to my credit removed? And if the school does not do that, who can I work with on this?

Thanks

clohman · Mar 27, 2007, 02:08 PM

I think you should do this through the credit bureau. Do you have a letter to fax them or mail to them showing the account is paid in full.

Foucault · Mar 27, 2007, 02:48 PM

Who would be the credit bureau? Who exactly do I contact for this?

clohman · Mar 27, 2007, 04:10 PM

I live in Illinois and the 3 credit bureaus are Tranunion at 1-800-362-7255, Equifax 1-800-525-6285 and Experian 1-888-397-3742. Have you requested your one free credit reports.

Fr_Chuck · Mar 27, 2007, 04:13 PM

Actually before you paid them off, part of the settlement should have been them taking off anything negative.

But if the info is true, it can't be taken off.

LaurieZ · Mar 27, 2007, 04:52 PM

Originally Posted by Foucault

I have had some loans to pay back to my college. Nothing big, but the payments started while I was still in grad school, and I had a hard time coming up with the money at the time. On 2 occasions I made my payments just after they were notifying me that they would refer me to a collection agency if I didn't pay (a last notice of sorts).

I got damage on my credit that severely limited my options when I searched for housing last year.

At this point I have kept up with all payments and managed to pay off the loan entirely (this month I will make the final payment).

My question is:

Since I will have paid off the whole debt, can I contact the school to tell them to have the damage to my credit removed? And if the school does not do that, who can I work with on this?

thanks

I am a credit specialist and deal with clients on this all the time.Once they are paid off, contact the bureaus in writing with copies of the front and back of the checks. Request that they be marked "Paid as Agreed."

In the future, you need to work with a credit person who knows the laws and how to prepare documentation letters. NEVER speak on the phone--always send certifed return receipt letters to protect your rights.If you decide to negotiate with creditors upon mutually agreeable terms of payment or payment plan, insist that they (in writing) agree to delete the debt from the bureaus. They report it, they can delete it!

Foucault · Mar 30, 2007, 01:30 PM

Just to give the update on this, it looks like Fr_Chuck's answer (below) was the most on point. I talked to the school and they said that unless it was an error on their behalf, it will not be taken off. I certainly think it's no way to treat your alumni (especially for a school of their caliber) and they will stop seeing any more donations from me in the future.

Originally Posted by Fr_Chuck

actually before you paid them off, part of the settlement should have been them taking off anything negitive.

But if the info is true, it can't be taken off.

Fr_Chuck · Mar 30, 2007, 01:34 PM

Now you can of course challegene the debt with the collection agency, as to the info being valid, ( someone listed their names above)

If the school does not respond, and state it is true, it will be removed, on true debts I normally don't recommend this to be done, since true is true and you are suppose to live with the mess you make. But what the heck I like you for some reason and many times your debtor will not respond and it will be taken off.

DrJ · Mar 30, 2007, 02:18 PM

You can also challenge the accuracy in which the account was reported in accordance to the Fair Credit Reporting Act. Whether the debt &/or the negative marks are accurate, this can remove any reference to them if done correctly.

You can attempt to do this yourself or if you would like a company to do it for you, let me know (feel free to PM). There is a great restoration company that charges about $100 to sign up and between $35-$75 a month (depending on how aggressive you wish them to be). The whole process usually takes between 3-9 months.