Consumer complaint received 2023-10-26
Company: Experian Information Solutions Inc.
State: MO
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
There are XXXX XXXX XXXX XXXX loans tradelines on my credit report I Filed XXXX XXXXXXXX In XX/XX/XXXX. These accounts show : The Smart Option Student Loan XXXX XXXX Promissory Note XXXX, XX/XX/XXXX last payment XX/XX/XXXX closed XX/XX/XXXX charged off purchased by another lender. XX/XX/XXXX late XXXX. 
The Smart Option Student Loan XXXX XXXX Promissory Note XXXX, XXXX last payment XX/XX/XXXX closed XX/XX/XXXX charged off purchased by another lender. XX/XX/XXXX late XXXX. 
The Smart Option Student Loan XXXX XXXX Promissory Note, requested amount {$7000.00}, academic period XX/XX/XXXX XX/XX/XXXX last payment XX/XX/XXXX closed XX/XX/XXXX charged off purchased by another lender. XX/XX/XXXX late XXXX. 
These accounts have been dormant for since XXXX during the time I was in an active XXXX XXXX 
Ordinarily unsecured loans ( such as private student loans ) are fully dischargeable in bankruptcy. The Bankruptcy Code provides three exceptions relating to educational obligations 1.11 U.S.C. 523 ( 8 ) ( A ) ( i ) ; 2. 11 U.S.C. 523 ( 8 ) ( A ) ( ii ) ; or 3. RS Code 221 ( d ) ( 1 ). See 11 U.S.C. 523 ( 8 ) ( B ). These loans did not mean any of these exceptions.

The lenders had the initial burden to prove that the loan is a qualified education loan that is excepted from discharge. They did nothing but allow the loans to become dormant and barred.

The lenders held to 523 saying it is a educational benefit, I did not receive the benefit based on IRS publication,901. Only one person or marital status can claim the 1098 T when they file.

A creditor with a claim against a debtor may file a proof of claim, 11 U.S.C. 501 ( a ), which consists ofwritten statement setting forth a creditors claim, XXXX XXXX XXXX. XXXX XXXX ( a ). A proof of claim executed and filed in accordance with [ the Federal Rules of Bankruptcy Procedure ] shall constitute prima facie evidence of the validity and amount of the claim, XXXX  XXXX XXXX. XXXX XXXX ( f ), and the claim is deemed allowed unless a party in interest to the bankruptcy proceeding. 
XXXX XXXX did file said claim, was aware of the discharge. The sold to another lender. 
The Supreme Court in XXXX v. XXXX, XXXX XXXX XXXX XXXX ( XXXX ), has ruled that if a lender has knowledge of a bankruptcy discharge and takes intentional actions believing that the discharge does not apply to its actions, then the lender is in contempt if there is no fair ground of doubt as to whether the order barred the creditors conduct. In other words, civil contempt may be appropriate if there is no objectively reasonable basis for concluding that the creditors conduct might be lawful. 
XXXX XXXX charged of the deb and sold to another lender/ t collectors debt buyers may claim they are not covered by the discharge order and have no knowledge of the order. The creditor should be in contempt for selling a discharged debt or for hiring a collector to collect on a discharged debt.

Every circuit ruling on the issue llow for Fair Debt Collection Practices Act ( FDCPA ) claims for violation of the bankruptcy discharge. See NCLCs Fair Debt Collection 13.7.2 Debt buyers purchasing private student loan notes can not claim holder-in-due-course status to avoid the consumers defenses against the originating lender. The very inclusion of the FTC Holder Notice and the fact that the debt buyer purchased the note after the consumers default are two of the potential grounds that defeat holder-in-due-course status. See NCLCs Mortgage Lending 10.7.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation