Consumer complaint received 2020-08-01
Company: Nelnet, Inc.
State: VA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
Nelnet is reporting late payments on 20 different accounts on my XXXX & XXXX credit reports in XX/XX/2019 when those accounts were in forbearance during that time and then paid in full through consolidation in XX/XX/2019. I previously disputed & the reply was that they had backdated the forbearance & " A backdated administrative forbearance does not modify previously furnished data. '' That is incorrect because you have an obligation to report correct information and if you are aware that I was granted a forbearance effective for that time period, and therefore nothing was owed at that time, and therefore nothing was late, then you are incorrectly reporting that I was late for that time period but not correcting it now. Additionally, Not updating this information is drastically affecting my credit & updating it does not harm Nelnet in any way as you have been paid in full & do not even hold these loans any longer. I need this resolved asap. 

This comes directly from the department of education in re to previous incidents like this : " Section 623 ( a ) ( 2 ) of the FCRA addresses the duty to correct and update information by " furnishers, '' or persons who furnish information to consumer reporting agencies ( " CRA '' ) such as credit bureaus. In particular, this section requires a person that " has furnished to a consumer reporting agency information that the person determines is not complete or accurate '' to " promptly notify the consumer reporting agency of that determination '' and provide any information needed to make it complete and accurate. ( 1 ) Thus, on its face, this provision requires a furnisher to provide corrected or updated information to the consumer reporting agency that it had reported to originally. A furnisher that reports current information to a different CRA has done nothing to " correct and update information '' with CRA that possess the information that the furnisher has now determined is incomplete or erroneous. This duty extends to all student loan accounts reported to CRAs, regardless of whether they were accurate at one point, because the section requires the furnisher both to " update '' accounts as well as to " correct '' those that were erroneous when submitted to the CRA. 

Section 607 ( B ) of the FCRA requires CRAs to " follow reasonable procedures to assure maximum possible accuracy of information '' in their consumer reports. It is our view that a CRA that refuses to accept updated and corrected information from a furnisher on student loan accounts, if it still maintains that information in its database, does not have in place " reasonable procedures '' to comply with this section with respect to such accounts. '' You are in violation of the law by continuing to allow this incorrect information to remain on my credit report.

Company response to consumer: Closed with explanation