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What's better -- chargeoff v. 120+ days late v. PIF for less than full?


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Hi there -- am hoping that you can help me figure out the best way to approach a reporting issue. I had five baddies, all related to the same student loan issue. When I spoke with the student loan agency about the best way to settle my debt, they said I could give them $12k lump for the $14k debt, which I did. They said it'd be the best way to clear up my credit report.

When I wrote a goodwill letter to see if I could get everything removed entirely, they said no because I settled. I'm planning on writing again and telling them that I WOULDN'T have settled if I'd only been told that it would prevent me from losing the baddies, but that is, perhaps, beside the point.

These five TLs are being reported three different ways on three different credit reports. Every report has some variance on other things, but I'm starting to think that even though an agent told me that I was better off having several 120+ days late rather than chargeoffs, that's not the case. Here's how it looks:

TU: 674

5 student loan TLs -- payment after chargeoff/collection

Other negatives: 5 other chargeoff/collections, two public records

EQ: 612

5 student loan TLs -- 120+ days past due

Other negatives: 5 other 120+ days past due (another student loan guaranty company for the same debt), 2 bad debt/collections, 1 public record

EX: 641

5 student loan TLs -- account legally paid in full for less than the full balance

Other negatives: 5 "OK/was collection," 2 "account transferred to another office," 2 public records

Even though I was told by the company that I was LUCKY they were reporting as late instead of a chargeoff, I'm thinking that's not the case. Thoughts?

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120 days late is the best of the 3 options...

Charge - off means you didn't pay.- completely jilting the OC- very very bad on your credit.

SIF (settled in full) means you still jilted the OC by some amount.


120 days late implies you paid eventually.- so in the end you did the right thing.

When I wrote a goodwill letter to see if I could get everything removed entirely, they said no because I settled.

so why not offer to PIF to have it removed?


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Did you pay the original creditor of the student loan before or after they transferred the debt to the guarantor? After the guarantor has the student loan assigned to them, they are the one to collect the debt. The original creditor of the student loan has insurance (included in part of the loan proceeds not given to you, that was part of the loan from the guarantor in case of default).

The guarantor pays the original creditor. Once the creditor has been paid, they will mark "paid" on your credit report and also mark that it was transferred. They will also mark the number of days past due before the debt was transferred to the guarantor. They can do this if they notified you in accordance to the student loan collection laws and also if you were over 120 days late with them.

Once it goes to the guarantor of the loan, the original creditor is not supposed to collect from you. If they do, they have to send the payment to the guarantor of the loan within a certain number of days (I think it is 30). The guarantor can still collect any interest and collection charges on top of whatever the original creditor asked you to pay.

So, yes, they can report you as 120 days late. The guarantor has to report the first date they received the collection. Then, they are supposed to set up payment plans with you until paid in full. If you are late on the payment plans, they can mark you 30,60,90, or 120 days late and also have the option to garnish wages, put a judgment on you, or put you with a collection agency.

You need to find out who your guarantor is and if they are reporting the $12,000 paid and when. Make sure the full amount is paid off - including the collection charges. If this was the first payment to them and you never had a written or verbal agreement to a payment plan, you can try to get them to take the 120 day late payment off your report.

Request the bureaus and the creditors to "merge" these accounts together so they are all reporting the same way on your credit report. You can do this by requesting a copy of all the documents the guarantor received from the original creditor and also the payment history on the account. Send this in with your letters to the credit bureaus. At least you will get the correct "last activity" date correct and the collection dates corrected so it will fall off your report faster.

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They are Govt programs, they will never change and delete the neg information, but paid is paid and better than unpaid chargeoff...

The other collections if they are paid may be easier to dispute off...Try that route, DV them and dispute at the same time...ya gotta start somewhere...

Good Luck

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