Consumer complaint received 2021-05-31
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc. (VA)

To whom it may concern : During the Spring semester of XXXX, I received a Perkins Loan from XXXX University to assist with education costs. Due to extenuating circumstances, I was not able to pay back the loan right after graduation in XX/XX/XXXX. I was under the impression that XXXX, as advertised, would help place me with a top-tier company that would compensate me with a suitable wage that matched my education and skillsets. Due to the fact that it took me more time than anticipated to get a job, I applied for forbearance for all of my loans and was approved. I was under the impression that this particular loan would have been included with the other loans that were approved for deferment. Sadly, I was mistaken. It wasn't until I started receiving correspondence via phone and postal mail that I realized this Perkins Loan was separate from the others and not handled by XXXX like the other loans. I set up payment arrangements, however, I wasn't able to keep up with the payments. I was unemployed for quite a while and I had to prioritize other bills above this loan for my own survival. The loan went into default eventually. I was able to finish paying off the loan in XXXX XXXX, 60 months after the origination of the loan. Unfortunately, the loan was still being reported as unpaid from XX/XX/XXXX to XX/XX/XXXX. That is false information remaining on my report for 20 months after being paid in full. I disputed this with Experian several times to no avail. Each time it was disputed online, the credit bureau allowed for this false information to remain on my report as is. The situation became so egregious that Experian banned me from being able to dispute this account online and over the phone. I gave up on this situation for a while. On XX/XX/XXXX, I called XXXX to speak with XXXX XXXX XXXX. I left a message with one of her associates that my account status still needed to be updated. The next day, XXXX XXXX emailed me back stating the status of the account is indeed being reported correctly. I refused to respond to her. I decided to go to the Experian website to download a form to complete a mail-in dispute. I wrote a letter explaining the situation to them and I also attached proof that my account is paid in full. This is the same proof that I was providing when I was handling my disputes online. Finally, after receiving my letter and the attachments, the payment status of the loan was updated to " paid, was a collection account, insurance claim, or government claim or was terminated for the default ''. However, while updating the payment status they also falsely reported negative payment history for XX/XX/XXXX and XX/XX/XXXX. 

XXXX University is in violation of the Fair Credit Reporting Act ( FCRA ). They falsely reported negative payment information and they also did not send proper notice of this negative information that was reported. 

( 7 ) Negative Information ( A ) Notice to Consumer Required ( i ) In general. If any financial institution that extends credit and regularly and in the ordinary course of business furnishes information to a consumer reporting agency described in section 603 ( p ) furnishes negative information to such an agency regarding credit extended to a customer, the financial institution shall provide a notice of such furnishing of negative information, in writing, to the customer. 
( ii ) Notice effective for subsequent submissions. After providing such notice, the financial institution may submit additional negative information to a consumer reporting agency described in section 603 ( p ) with respect to the same transaction, extension of credit, account, or customer without providing additional notice to the customer. 
( B ) Time of Notice ( i ) In general. The notice required under subparagraph ( A ) shall be provided to the customer prior to, or no later than 30 days after, furnishing the negative information to a consumer reporting agency described in section 603 ( p ).

They are also in violation of the Fair Debt Collections Practices Act ( FDCPA ). The original balance was {$1300.00} and I ended up paying {$1700.00}. There was an unfair amount of additional fees and interest. 

808. Unfair practices A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section : ( 1 ) The collection of any amount ( including any interest, fee, charge, or expense incidental to the principal obligation ) unless such amount is expressly authorized by the agreement creating the debt or permitted by law. 

I experienced undue stress because of this situation. I lost job opportunities that required a security clearance. It has also been hard getting a home loan with this on my report. I have been trying to purchase my first home. This account was sitting on my report as UNPAID for nearly two years after it was paid. Then when it was updated they added more FALSE NEGATIVE INFORMATION.