Consumer complaint received 2020-09-04
Product: Student loan — Federal student loan servicing
Issue: Incorrect information on your report — Account information incorrect
Company: Oklahoma Student Loan Authority (IL)

I am writing to file a complaint and request an investigation into the circumstances that resulted in the continued incorrect reporting of my student loans under the Oklahoma Student Loan Authority ( OSLA ) from XXXX XX/XX/XXXX XX/XX/XXXX. I applied and was approved for student loan forgiveness under the XXXX XXXX XXXX XXXX Student Loan Discharge Program on XXXX XX/XX/XXXX to forgive a debt balance of a little over $ XXXX. 
According to XXXX, who processed my student loan discharge application, OSLA was notified that 13 of my student loans were approved for discharge on XXXX XX/XX/XXXX. Between On XXXX XXXX XX/XX/XXXX, I contacted OSLA to check the status of them updating my student loans accounts with the 3 major credit reporting agencies ( CRAs ), XXXX, XXXX and XXXX  to reflect the new discharge status. I explained that I was preparing to apply for a mortgage loan and wanted to ensure that my credit reports reflected as paid in full and the lower debt-to-income ratio. Each time I called, OSLA repeatedly stated that they had not yet received the required information or payment from XXXX ( OSLA customer service reps told me something different ) to discharge the loans, despite XXXX also confirming each time that they had met all requirements. 
Finally, on XXXX XXXX XXXX, I spoke with an OSLA representative who stated the 13 student loans had been discharged, the balance on each loan was now XXXX and that OSLA would be reporting this XXXX balance to the 3 credit reporting agencies ( CRAs ) within the next few days. On that same day, to confirm the balances, I checked my OSLA student loan account online and XXXX balances were reflected for each of the student loans. I began the process of preparing to apply for a mortgage loan. 

On XXXX XX/XX/XXXX, I received alerts from all 3 CRAs showing several changes to my credit reports and that my credit scores had plummeted. Upon investigation, I saw that instead of reporting XXXX balances for the loans to the CRAs, OSLA had reported a balance increase for each of the 13 loans, which were now reporting higher amounts than what I actually owed. My student loan debt had now increased to over $ XXXX. In addition, two loans that had been paid off and reporting as XXXX since XXXX, now suddenly reflected a balance due, which caused them to now report as being in default, although I had never been late on these accounts. I immediately contacted OSLA for an explanation. After speaking to several representatives, I received a mixed bag of explanations, with the last being from the supervisor XXXX XXXX, who explained that in order to prepare refunds owed to be for amounts that Id already paid toward the balance of the loans, amounts to be refunded to were re-added to my balance. This resulted in the erroneous reporting. She also stated that the representative that I was spoke with on XXXX XX/XX/XXXX was incorrect and that my loans had not yet been discharged. This was confusing, since my online accounts were showing a XXXX   balance. Whatever the case, I explained that regardless of inhouse account processes, the only balances that should have been reported were my balances as they were prior to XXXX XX/XX/XXXX or a XXXX balance after XXXX XX/XX/XXXX, if the accounts were indeed discharged as told me on that date. 

XXXX  XXXX began the process of trying to resolve the issue and provided me with a memo detailing the errors and anticipated corrections to provide to my mortgage company. Although, the balances in the memo still reflected the increased amounts, not my actual debt amount. As required by law, I also submitted a dispute with XXXX CRA. Between XXXX XX/XX/XXXX there were a series of updates to my loans with the CRAs, eventually resulting in the loan balances reflecting correctly as XXXX  balance, closed, paid in full, with no defaults. However, on XXXX XX/XX/XXXX, I again received alerts for the CRAs stating that there were again changes to my student loans. Upon investigation, I saw that 8-9 ( depending on the CRA ) of the student loans were again reporting with a balance due, to include one account again reporting as in default. My credit score plummeted AGAIN. On XXXX XX/XX/XXXX, I contacted the CRAs and each stated that the balances are as reported per OSLA last updates, dated XX/XX/XXXX/XXXX, XXXX   XXXX XXXX and XXXX XXXX XXXX. I then contacted OSLA. 

During my conversation with an OSLA, I was first told that the balances reported to the CRAs, as alerted on XXXX XX/XX/XXXX, had been reported in response to the disputes that I filed in early XXXX relating to the initial error in reporting on XXXX XXXX. While I understood that OSLA was required to respond to the disputes, I questioned why OSLA responded with incorrect information. The representative first explained that they had to report my last balance. If this were the case, then a XXXX balance, closed and paid as agreed should have been reported for all 13 accounts, as that was what was accurate and last reported. I also questioned why only some accounts were affected, if this was simply a case or reporting prior information. The representative could not provide a clear explanation and by the end of the conversation the representative began denying that OSLA had reported any updates to the CRAs at all since XXXX XX/XX/XXXX. The OSLA rep insisted that this was a CRA error, not an OSLA error, and directed me to contact the CRAs for assistance. I again contacted the CRAs and they made very clear that they only report information provided by the furnisher. I continued trying to get this sorted out with OSLA and they simply said that they would send an update, but provided no explanation as what happened. 

Between XXXX XX/XX/XXXX XX/XX/XXXX, some of the loan accounts were corrected, however, two are still reflecting a balance. Ive spoken to OSLA representatives 3 more times since XXXX XX/XX/XXXX, still with no clear explanation as to what happened or why some of my accounts are still reporting inaccurately. As of today, XXXX XX/XX/XXXX, I spoke with XXXX XXXX again, who stated that the credit department reps told her that the error in reporting may have been caused by someone failing to pay attention something when they responded to the CRA disputes and that the credit reps were reviewing my account and would be joining our call to further explain the reporting errors. The credit reps never joined our call. Instead, Mrs XXXX apologized, stated that the credit reps would work to resolve the issue and that she would provide me with another memo confirming that my account was discharged on XXXX XX/XX/XXXX and paid in full to fax to the CRAs. The call ended with no further explanation as to the continued reporting errors. The balance on my student loan accounts is currently reporting as {$22000.00}, although I owe {$0.00}. 

Regardless of OSLA permanent correction of these errors, these careless errors have destroyed my credit and ability to secure a mortgage loan. It impossible for me to regain the credit score points lost or anticipated points that I may have gained upon repayment of my student loans. Nor, do any gains matter when  the errors in reporting continue. Further, there is still the question of, if my account was discharged on XXXX XX/XX/XXXX, why did the account continue to report with balances in through XXXX? None of it makes sense. Due to this continued irretrievable damage to my credit standing, it is important that an investigation into this matter be initiated. 

I have attached letters received from OSLA and a Word document reflecting the two accounts still reporting incorrectly as of today, XXXX XX/XX/XXXX. 

Your assistance in this matter is greatly appreciated.