Monday, July 4, 2011

How to Remove Transferred and Sold Student Loans From Your Credit Report

If your student loan has been sold or transferred to another lender but your credit report has not been updated, you could face serious credit issues until you successfully dispute the mistake, especially if the transferred loan has also appeared on your report. If the lender and the credit bureaus don't respond to your dispute in a timely fashion, you may be able to sue your creditor to force them to update your report and pay for the damage to your credit reputation.

Instructions

    1

    Review your credit reports from all three credit bureaus (Experian, TransUnion and Equifax). In many cases, errors can appear on or more of the reports but not on others. File a dispute by mail, telephone or through their websites detailing your issue. They are required by the Federal Trade Commission to follow up within 30 days. They will request documentation from you supporting your dispute if necessary.

    2

    Send copies of your documents supporting your case to the credit bureau when requested. The letter that was sent to you informing you that your student loan was sold or transferred should be sufficient. Provide copies of bills from the old student loan owner and the new owner to further support your position.

    3

    Contact both the old and new owners of your student loan informing them of your credit report error. Write them a letter and save a copy for your records. You can contact them by telephone, but insist that any agreement that you make with them regarding your credit report be put in writing.

    4

    File a lawsuit against the old owner of the student loan if they do not respond to your dispute in a timely fashion. A lawyer will determine what you are eligible to sue them for, but for a case such as this it will likely be covered by the Fair Debt Reporting Practices Act.

    5

    Submit a complaint to the FTC by mail if you lose your lawsuit and have compelling proof of the student loan company's errors. The FTC may be able to strengthen your case should you decide to sue the lender again or may otherwise assist you in resolving your credit report issue.

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