Consumer complaint received 2016-12-21
Company: Texas Guaranteed
State: FL
Product: Student loan
Sub-product: Federal student loan servicing
Issue: Dealing with my lender or servicer
Sub-issue: Received bad information about my loan

Complaint:
Subject : Problems with TG XXXX I got into a Loan Rehab program for my defaulted loans with the servicing provider TG ( Texas Guaranteed XXXX ) who was the gurantor. At the time, TG had XXXX XXXX to be the servicer of the my loans since XXXX. TG agreed to delete my loans from default and remove them from my credit ( See, Exhibit A1 and Exhibit A2 ). I successfully completed the rehab program. I contacted ( TG ) directly and they said they notified XXXX XXXX ( The servicer ) to remove the credit file from each of the credit bureaus. ( TG ) told me that it should take up to 60 days for XXXX XXXX to remove it according to XXXX - Loan rehabilitation agreement. It has now been close to 500 days and they have not been removed. ( Exhibit " B '' is a sample listing on Experian showing defaulted loans ). TG also stated that the problem is with XXXX XXXX because they handled there part. 
I 'm preparing to shop for a mortgage and was told those defaulted loans still showing on my credit will keep me from getting the best interest rate. I 'm requesting your assistance to correct this error that is being caused by either TG and XXXX XXXX on these loans since the defaults do not reflect my current payment status and agreed upon rehab arrangements. 
Bigger Issue : I have asked the XXXX credit bureaus to help as well. The last time I asked for help from credit bureaus ( Exhibit E ) was on XXXX/XXXX/XXXX. I also asked XXXX XXXX to remove these items as well ( Exhibit C ) and sent them a letter ( Exhibit D ) on XXXX/XXXX/XXXX. I am needing for the loan guarantor which is TG to have their service provider XXXX XXXX to remove these defaulted loans from my credit immediately as agreed with the TG provider who is the loan guarantor of my loans. My student loans are showing multiple times on my credit as the defaulted loans still show and the current loans show. So if I miss a payment on my current loan, I will be penalized twice on my credit report for the same loan. By TG not working with their servicer XXXX XXXX to delete the accounts is in violation of Section 623 ( a ) ( 2 ) of the FCRA. FTC advisory opinion : XXXX which interprets Section 623 ( a ) ( 2 ) of the FCRA. The issue posed in the advisory opinion is how a lender is to handle a situation when subsequent information updates a report that was allegedly accurate when it was made but no longer is accurate in the present time. The advisory opinion states that the 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. 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. 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. ''

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation