Consumer complaint received 2024-07-22 00:00:00
Product: Student loan — Federal student loan servicing
Issue: Problem with a company's investigation into an existing problem — Was not notified of investigation status or results
Company: Nelnet, Inc.
State: PA

Complaint narrative:
Please note, I have made multiple attempts to have this inaccurate information corrected on my consumer report. 

Nelnet Loan Services is in violation of several laws by reporting my student loan account XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  as late payments, from XX/XX/XXXX - XX/XX/XXXX, to the consumer reporting agencies ( XXXX, XXXX, & XXXX ), by failing to update previously reported information as instructed in Section 623 ( a ) ( 2 ) of the FCRA.

Nelnet Loan Services is in violation of Section 623 ( a ) ( 2 ) of the FCRA. Be advised that the Holder Rule protects consumers claims & defenses against a creditor or assignee 16 C.F.R. 433.

The FTC advisory opinion 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 ( i.e., the identical situation I am currently in ). 

The advisory opinion goes on to state that 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 XXXX, XXXX, & XXXX. 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 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 ... even if the loan was correctly reported as delinquent but has subsequently been paid. 

Section 623 ( a ) ( 2 ) clearly states that the reports must be updated/corrected regardless of whether they were accurate at one point.

The attached letter, which included a copy of the Advisory Opinion, was sent to Nelnet Loan Services certified mail on XXXX XXXX, requesting these accounts be updated within 30 days. After reviewing my consumer report on XX/XX/XXXX, Nelnet Loan Services has not updated these accounts.

Nelnet Loan Services is in violation of 15 U.S. Code 1666b - Timing of payments, A creditor may not treat a payment on a credit card account under an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 1637 ( b ) of this title is mailed or delivered to the consumer not later than 21 days before the payment due date. I have never received such notice before these accounts were reported to the consumer reporting agencies as late payments. This law includes student loans according to 15 U.S. Code 1602 ( l ) - Definitions and rules of construction. 
The following defines a credit card account The term credit card means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. 

Nelnet Loan Services is in violation of 15 U.S. Code 1637b ( 1-12 ) - Open end consumer credit plans, Statement required with each billing cycle. I have not received all that Is required in this section. 

The reporting of such inaccurate information has caused severe damage to my general mode of living and my ability to obtain credit for personal and household purposes. 

Nelnet Loan Services is in violation of 15 U.S. Code 1681s2 - Responsibilities of furnishers of information to consumer reporting agencies ( a ) Duty of furnishers of information to provide accurate information ( 1 ) Prohibition ( A ) Reporting information with actual knowledge of errors A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 
( B ) Reporting information after notice and confirmation of errors A person shall not furnish information relating to a consumer to any consumer reporting agency if ( i ) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and ( ii ) the information is, in fact, inaccurate. 

Duty a moral or legal obligation Accurate correct in all details, exact Prohibition a law or regulation forbidding something 15 U.S. Code 1681s2 Defines Nelnet Loan Services as a furnisher of information to consumer reporting agencies. The information being furnished is, in fact, inaccurate. Nelnet Loans Services has previously been notified of this inaccurate reporting to my consumer report, yet the inaccurate information remains.

Nelnet Loan Services is PROHIBITED BY LAW to furnish inaccurate information. 

In conclusion, Nelnet had been put on notice that they are reporting inaccurate information. The information is, in fact, inaccurate. The continued reporting of this inaccurate information is a clear violation of the law 15 U.S. Code 1681s2 of your responsibilities as a furnisher of information. You have caused me and my family severe harm due to your negligence and inaccurate reporting.

Company response to consumer: Closed with explanation