Consumer complaint received 2023-12-14
Company: EQUIFAX, INC.
State: DC
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
The following letter, which serves to explain the applicable rule of law, and supporting documents ( please see the attached file ) were mailed to XXXX XXXX as evidence that the XXXX XXXX loan issued to me and ending in XXXX ( henceforth referred to as Loan XXXX ) is dischargeable through my XXXX XXXX Bankruptcy Case that was filed in XX/XX/XXXX, and discharged by the United States Bankruptcy Court in XX/XX/XXXX by order of a United States Bankruptcy Judge. 

Though most student loans are not dischargeable through bankruptcy, relevant case law dictates that Loan XXXX can not be defined as a qualified education loan because I was not an eligible student to receive a qualified education loan during the period for which the Loan was originated, approved, and disbursed. The law on student eligibility stipulates that a student must be enrolled or accepted for enrollment in a degree, certificate, or other program in order to be considered eligible to receive a qualified education grant, loan, or work assistance. 

Supporting documents include an official statement from the XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX at XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX ( henceforth referred to as XXXX ) the school to which Loan XXXX was disbursed, as noted on the loan 's Final Disclosure document attesting to the fact that I have " never been accepted for admission to or enrollment in any XXXX program. 

The letter and supporting documents referred to herein were sent to XXXX XXXX at XXXX XXXX XXXX, XXXX, XXXX XXXX, by U.S. mail on XX/XX/XXXX, and were delivered on XX/XX/XXXX ( USPS delivery confirmation included in the attached document ). A XXXX XXXX Manager XXXX, Employee # XXXX, confirmed receipt of said mailing during a phone call with me that occurred on XX/XX/XXXX. 



THE FOLLOWING LETTER TO XXXX XXXX, DATED XX/XX/XXXX, WAS MAILED ON XX/XX/XXXX, AND RECEIVED BY XXXX XXXX ON XX/XX/XXXX : To Whom It May Concern : I, [ NAME REDACTED ] ( CIN [ NUMBER REDACTED ] ), filed for XXXX XXXX Bankruptcy with the XXXX XXXX XXXX  Bankruptcy Court in XX/XX/XXXX. In XX/XX/XXXX, the court notified XXXX XXXX of the Order of Discharge granted to me by United States Bankruptcy Judge [ NAME REDACTED ]. 

Ordinarily, unsecured loans such as the private XXXX XXXX Smart Option Student Loan ending in XXXX ( Loan XXXX ), issued to me and referred to herein are fully dischargeable in bankruptcy. However, XXXX XXXX incorrectly claims that Loan XXXX falls under an exception, provided by The Bankruptcy Code, that relates to educational obligations and prescribes that a qualified education loan is not eligible for discharge through bankruptcy. XXXX XXXX postulates that Loan XXXX is an educational loan that is a qualified education loan, as defined in section 221 ( d ) ( 1 ) of the Internal Revenue Code of 1986... '' See 11 U.S. Code 523 ( 8 ) ( B ). 

The reason that Loan XXXX is not a qualified education loan, and is therefore eligible for discharge, is detailed in the paragraphs below. 

IRS Code 221 ( d ) ( 1 ) states that The term qualified education loan means any indebtedness incurred by the taxpayer solely to pay qualified higher education expenses... which are attributable to education furnished during a period during which the recipient was an eligible student. See 26 U.S. Code 221 ( d ) ( 1 ). 

The IRS Code continues in section 221 ( d ) ( 3 ) by defining the term eligible student to have the meaning given such term by section 25A ( b ) ( 3 ). See 26 U.S. Code 221 ( d ) ( 3 ). 
IRS Code 25A ( b ) ( 3 ) states that For purposes of this subsection, the term eligible student means, with respect to any academic period, a student who ( A ) meets the requirements of section 484 ( a ) ( 1 ) of the Higher Education Act of 1965 ( 20 U.S.C. 1091 ( a ) ( 1 ) ), as in effect on the date of the enactment of this section... See 26 U.S. Code 25A ( b ) ( 3 ) ( A ). 

Finally, the Higher Education Act 1091 on Student eligibility dictates in subsection ( a ) ( 1 ) that In order to receive any grant, loan, or work assistance under this subchapter, a student must ( 1 ) be enrolled or accepted for enrollment in a degree, certificate, or other program... See 20 U.S. Code 1091. 

On XX/XX/XXXX ( the Final Disclosure Date for Loan XXXX ), I was not nor have I ever been enrolled or accepted for enrollment in an official program through XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, nor through any other school/division of XXXX University . I borrowed Loan XXXX from XXXX XXXX to pay for my enrollment in independent graduate courses offered through XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX. At no point was I eligible to earn a degree or to be enrolled in an official XXXX program. Provided evidence in support of this fact includes the rejection letter I received from XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, on XX/XX/XXXX, after applying to the schools XXXX XXXX XXXX XXXX program. The letter states that, not only was I rejected for admission, but I was ineligible for admission due to not having earned a regionally accredited XXXX XXXX. As further verification, I have included a recent statement issued by XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, attesting to the fact that I have never been enrolled or accepted for enrollment in any of their programs. 

The above information and submitted evidence serves as proof that my XXXX XXXX unsecured loan, Loan XXXX, is eligible for discharge through bankruptcy. As it is my right under United States law, I am requesting that the full amount of my XXXX XXXX loan ending in XXXX be discharged immediately. Additionally, any and all negative information pertaining to Loan XXXX dated on or after XX/XX/XXXX ( the Order of Discharge Date ) needs to be expunged from my credit report, and said loan must be reported to all consumer reporting agencies as discharged through XXXX XXXX Bankruptcy as of the Order of Discharge Date. 

If this matter is not resolved within a reasonable amount of time, not to exceed 30 days from the date of receipt of this mailing, my next course of action will be to file a formal complaint with the Consumer Financial Protection Bureau. 

I appreciate your time and thank you in advance for your cooperation. 

With gratitude, [ NAME REDACTED ] Customer Identification Number : [ NUMBER REDACTED ] Loan : XXXXXXXX

Company response to consumer: Closed with explanation