Consumer complaint received 2023-06-03
Company: EdFinancial Services
State: IL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
PLEASE READ THOROUGHLY!!! 

XXXX XXXX is reporting late payments on my consumer report and is stating that Granite State Management is the reason for it being that this student loan was sent over by them. Both companies are saying two different things while Im stuck in limbo trying to get them to rectify the situation. I will seek damages if XXXX or XXXX XXXX does not resolve this matter as it is negatively impacting me consumer report. Ive tried to work with both companies and they both continue to give me the run around. This is a last ditch attempt to have these companies rectify this matter once and for all. Below is the response that Ive been sent on behalf of XXXX XXXX blaming Granite Management and Granite vehemently denies XXXX XXXX claim. Im giving you both an opportunity to solve this matter before it goes any further. You are reporting to my consumer report inaccurate information which has been detrimental to my consumer report. Please note that I now have several complaints with the consumer reporting agencies, CFPB, and now FTC. I am going to go to the full extent of the law to seek damages if these two companies do not resolve this matter once and for all. 

Complaint response from XXXX XXXX XXXX Dear XXXX XXXX This letter is in response to your recent complaint referred to XXXX XXXX by the Consumer Financial Protection Bureau ( CFPB ) regarding the student loan account we service. Your concern, as we understand it, is regarding credit reporting of the Federal Direct Stafford Loans we service for you. The Federal Direct Stafford Loans we service were issued under Part D, Title IV of the Higher Education Act of 1965 ( HEA ), as amended, 20 U.S.C. 1070 et seq. The making and servicing of these loans is governed by the HEA and the rules and regulations promulgated thereunder. Our records indicate the loans mentioned above transferred to us for servicing from Granite State Management and Resources ( GSMR ) on XX/XX/XXXX. When your loans transferred to us, we began reporting your loans in XX/XX/XXXX. Please be advised that we are not considered a debt collector or collection agency under the Fair Debt Collection Practices Act ( FDCPA ), 15 USC 1692a Sec. 803 ( 6 ) ; therefore, we are not responding to your request for debt validation. We enclosed a copy of your Master Promissory Note ( MPN ) signed on 08/17/16 for your convenience. Within the MPN mentioned above, the MPN Terms and Conditions state the following regarding credit reporting : We will report information about your loan to nationwide consumer reporting agencies ( credit bureaus ) and the National Student Loan Data System ( NSLDS ) on a regular basis. This information will include the disbursement dates, amount, and repayment status of your loan ( for example, whether you are current or delinquent in making payments ). If you default on a loan, we will report this to nationwide consumer reporting agencies. Your loan will be identified as an education loan. In accordance with the HEA, we are required to submit true and accurate credit reporting to the nationwide consumer reporting agencies ( CRAs ). We report the status of your loans each month, and we do not report your loans as delinquent until the loans are 90 days or more past due. Please note, we have not reported your loans delinquent to the CRAs. However, prior to your loans transferring to us from GSMR, they reported the status of your loans as current each month, with the following exceptions : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX During the period of delinquency, GSMR attempted to contact you by phone and by written correspondence, as required by federal regulations, to assist you in resolving your delinquent account. The delinquent reports made on your loans were reported accurately, and under the provisions of the Fair Credit Reporting Act ( FCRA ), these items will remain on your report for seven ( 7 ) years from the time that they were originally reported. In order to remove the negative credit reporting, you must have been receiving public assistance ( such as food stamps, etc. ), attending an eligible school on at least a half-time basis, receiving unemployment benefits, or deployed in the military in support of a war or contingency operation at the time of the delinquent reporting. If you were enrolled in school half-time or more, receiving public assistance, receiving unemployment benefits, or deployed in the military at the time of delinquency, please provide proof, along with the applicable deferment request so we may review your account and make any necessary updates. You may use our contact information below for assistance with determining the appropriate deferment request form to submit with your documentation. If we are not able to approve you for a backdated deferment to cover the delinquency period, the negative credit reporting will be considered accurate and will not be changed. If you have any questions or concerns, please visit XXXXXXXX or you may speak with a Customer Service Representative at XXXX. Sincerely, Customer Resolutions Unit XXXX XXXX Enclosure Complaint response from XXXX XXXX XXXX Dear XXXX XXXX, This notice is in response to your recent complaint referred to XXXX XXXX by the Consumer Financial Protection Bureau ( CFPB ) regarding the student loan account we service. Your concern, as we understand it, is regarding the credit reporting of your student loans. Your Federal Direct Stafford Loans were issued under Part D, Title IV of the Higher Education Act of 1965 ( HEA ), as amended, 20 U.S.C. 1070 et seq. The making and servicing of these loans is governed by the HEA and the rules and regulations promulgated thereunder. Your loans were transferred to our office effective XX/XX/XXXX from Granite State Management & Resources ( GSMR ). According to the Federal Student Aid ( FSA ) website, studentaid.gov, which provides loan detail information from the National Student Loan Data System ( NSLDS ), these loans were used for attendance at XXXX XXXX. For your convenience, we have mailed you a copy of your Master Promissory Note ( MPN ) electronically signed on XX/XX/XXXX for your review. In accordance with the HEA, we are required to submit true and accurate credit reporting to the nationwide consumer reporting agencies ( CRAs ). We report the status of your loan each month and we do not report your loan as delinquent until it is 90 days or more past due. We have not reported your loans negatively to your credit since we began servicing your account. GSMR reported the status of your loans as current each month, with the following exceptions XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX During the period of delinquency, GSMR attempted to contact you by phone and by written correspondence, as required by federal regulations, to assist you in resolving your delinquent account. The delinquent reports made on your loans were reported accurately, and under the provisions of the Fair Credit Reporting Act ( FCRA ), these items will remain on your report for seven ( 7 ) years from the time they were originally reported. In order to remove the negative credit reporting, you must have been receiving public assistance ( such as food stamps, etc. ), receiving unemployment benefits, attending an eligible school on at least a half-time basis, or deployed in the military in support of a war or contingency operation at the time of the delinquent reporting. If you were enrolled in school half-time or more, receiving public assistance, receiving unemployment benefits, or deployed in the military at the time of delinquency, please provide proof, along with the applicable deferment request so we may review your account and make any necessary updates. If we are not able to approve you for a backdated deferment to cover the delinquency period, the negative credit reporting will be considered accurate and will not be changed. On XX/XX/XXXX, the office of Federal Student Aid began providing the following temporary relief on ED-owned federal student loans : suspension of loan payments, stopped collections on defaulted loans, and a 0 % interest rate until no later than 60 days after XX/XX/XXXX. We will notify you before payments restart. If you are unable to afford your payments when repayment resumes, you may contact us to explore other repayment options. XXXX XXXX is committed to providing exceptional customer service and we take your feedback seriously. If you have any questions or concerns regarding your account, please visit www.edfinancial.com/Contact or you may speak with a Customer Service Representative at XXXX. Sincerely, Customer Resolutions Unit XXXX XXXX

Company response to consumer: Closed with explanation