Consumer complaint received 2020-07-17
Company: Experian Information Solutions Inc.
State: NY
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:
I was granted XXXX XXXX XXXXXXXX in XX/XX/XXXX, and began the process of applying for forgiveness of my FFEL consolidated student loans in XX/XX/XXXX. XXXX, the company that held the loan ( worth about {$28000.00}, consolidated from two loans ), informed me that my application for a XXXXXXXX XXXX   XXXX XXXX Discharge had been approved in a letter dated XX/XX/XXXX, and that no further payments or action on my part were necessary. The letter specifies details regarding Tax Implications when one 's loans are discharged, but says NOTHING about any sort of concern being warranted for one 's credit report, i.e. there is no warning that one 's status may be affected. 

Several months later, my wife and I applied for a home refinance-construction loan. We began the process in XX/XX/XXXX, and quarantines notwithstanding, the process proceeded smoothly through our first credit score checks, which arrived in mid-XXXX  XXXX ; my scores were all in the low 800s. 

Toward the end of XXXX, however, as the date of our closing approached, we were contacted by the bank 's mortgage officer, asking if we could provide the underwriter with more information since I was reported as being delinquent on my student loans, and my credit score was significantly lower than before ( more than 150points ). 

We spend hours on the telephone with various parties from XXXX during the week of XX/XX/XXXX. Their practices seem to be designed to wear down concerned customers, as the branch dealing with TPD claims is somehow not connected to the " Solutions '' branch that deals with credit reporting, and frequent transfers between uninformed agents necessitate repeated explanations of problems. 

We were repeatedly told that -- and, if this is true, it represents an INCREDIBLY poorly designed process -- as loan forgiveness is being processed, the de-activated loans are 're-activated, ' and thus appear as delinquent/unpaid on a person 's credit report until the process is completed, which must happen within a 120-day period. In other words, WITH NO KNOWLEDGE to the veteran, who in face is notified in writing that no further payment is necessary, they are reported as delinquent on their loan, and will be for at least 4 months.. This is especially unjust, as the veteran neither has knowledge about it and thus can not do anything to prevent or remedy the situation. 

Several XXXX representatives told us that since the 120-day period had not concluded, there was nothing that I could do but wait for the loan forgiveness process to conclude and then, once the loan was no longer " delinquent '', wait for our credit scores to improve. Because this sounded ridiculous, which it is, I repeatedly asked to speak to persons in different branches and to supervisors of those persons, and were promised on Thursday the XXXX that I would receive a call back from one supervisor Friday the XXXX. Unsurprisingly, though, we did not receive a call from XXXX that day, and my attempt to call back the person whom I had spoken with the previous day was unsuccessful that day as well. 

I spoke with a " Senior Resolution Specialist, '' XXXX XXXX, on Monday XXXX. XXXX, XXXX, after being on the phone for nearly three hours. This individual did offer to join a three-way call with the underwriter from my bank, which I arranged using my own phone. During this call, XXXX XXXX XXXX to the underwriter that ( XXXX XXXX XXXX 's report of my delinquent payment had been in error, ( 2 ) that my loans were paid in full, and ( 3 ) that it usually takes 120 days for a lender to approve a loan discharge. XXXX XXXX told both that underwriter and me that he would investigate how to have the lender 's report to credit reporting agencies adjusted, and would be back in touch. Again, unsirprisingly, I have not been able to reach XXXX XXXX since. 

We were able to close on our home loan successfully on XX/XX/XXXX, thankfully, but in making inquiries regarding contingency plans for extending part of the loan ( e.g. in the case that expenses for repairs to a damaged foundation and heating system exceeded our contractor 's estimates ), were told again by our bank that my credit score was lower than what is considered adequate for further assistance -- in other words, that my credit score had not been adjusted. We also received a letter from XXXX dated XX/XX/XXXX, that next week, stating : " Thank you for your recent credit reporting inquiry. After careful review of your account we have determined that the student loan ( s ) referenced in your request requires no adjustment because All credit reporting is valid and accurate. 

Under the Fair Credit Reporting Act ( FCRA ), data providers are not required to investigate certain disputes received directly from consumers. [ ... gives examples ]. '' We have continued to contact XXXX to dispute their abjuring the responsibility to clarify that I have not been delinquent on a payment, but subsequent conversations ( most recently yesterday, XX/XX/XXXX, and today, XX/XX/XXXX ) have yielded the same answer -- they will take no action. 

How can this be possible, when the credit reporting regarding the individual -- me -- is INACCURATE? Who designed a system that throws veterans into financial delinquency for at least a third of a year, with great possibilities that damage to credit scores can take MUCH longer to repair, and that they may not be able to access funds for their or their families needs, while their student loans are being " processed ''? Why are loan servicers not obliged to clarify that they are receiving TAXPAYER MONEY for every cent of those veterans ' loans, and to use some of those funds to make sure the persons  whose physical and/or mental health has been damaged by service to their country isn't worsened by financial crisis and anxiety? This clearly is hurting multiple other veterans, as I have found while researching how and to whom I could make further complaints. 

I am sending this complaint not only in the hopes for some resolution for myself, but for the many other veterans who, despite the existence of the XXXXXXXX XXXX XXXXXXXX XXXX loan forgiveness program, are STILL being financially damaged as they try to extricate themselves from their debts. It isn't much to ask, to have XXXX and other loan servicers explain to XXXX, Experian, and XXXX, that veterans like myself have not been delinquent on payments since we were notified, in writing, that our loans were forgiven.

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