Can I sue the Government and CRA's with this?

[obsoleet]

I had a student loan that defaulted.  I went through the Federal Loan Rehabilitation program which (when completed after 9-12 months) the loan will have all negative information removed and the loan will be placed with another lender at which time you can make payments or pay off and it will never have shown negative.

 

After I completed the program, the US Department of Education told me that they would update the CRA's to reflect "Pays as Agreed" never late, etc..  A month or so passed (about Feb. of this year) and it still showed negative so I disputed and 30 days later it came back as Updated....  collection account CLAIM FILED WITH GOVERNMENT.  Obviously i was a bit shocked because now it looks worse.  I contacted the US Dep. of Education and they said it would still take more time.  I waited another month or so... no change.  I disputed again in May and June... Verified.  No change.  After each dispute came back verified I called the US Dept. of Education and they say their systems show that they sent the request to the CRA's and to just wait.  Each time I asked for some sort of documentation showing they submitted the information to the CRA's and each time they said they couldn't provide it because it was handled by a different department or done electronically.

 

Finally after disputing it in July, it comes back as UPDATED: Pays as agreed, never late, etc!   THANK GOD!

 

But then about a week later, I get a credit alert on all 3 CRA's that a new derogatory account has been listed so I get my new CR's to see what it could be... lo and behold... the tradeline had been reverted back to COLLECTION ACCOUNT CLAIM FILED WITH GOVERNMENT.

 

I submit another dispute stating that they already verified before that it wasn't a collection account and the report reflected PAYS AS AGREED.  A month later they come back as VERIFIED COLLECTION ACCOUNT CLAIM FILED WITH GOVERNMENT.

 

Once again I call up the US Dept. of Education and they give me the same canned responses, we are showing that we sent the information to the CRA's and give it time to update.  I asked to speak to a supervisor and same thing.

 

I waited another month, disputed yet again and yesterday I get the results back VERIFIED COLLECTION ACCOUNT CLAIM FILED WITH GOVERNMENT.

 

 

I don't know what to do... it seems like I'm either getting the run around by the government or the CRA's aren't doing the verification they are supposed to be doing or both.  It has been about 7 months that I have this $29,000 collection account with a claim filed with government on my credit report which should have been removed/corrected and which obviously will prevent me from buying a house, car, etc

 

What's my next step?  Any help would be appreciated... I live in the state of MD if that is of any consequence.

 

 

[HotWheels96]

Have you read all about the 623 process? Titled, "623 Dispute Method" (the 7th link on the top of this page).

That's where I would start.

[appletree]

Years ago I went through a program to get my student loans straightened out. I paid $250 a month for 12 months and they did bring everything up to current as agreed.  Even told me to wait a year to file my taxes so I would get my refund the next yr.  Since then I've several deferments and honestly the thing will probably never be paid in full.  No matter how much you pay they just don't go away. I've owed the same amount since 1989!

 

I did notice on one of my cr's it is listed as current and also has all the loans listed as being sold to another lender.  Kind of strange because it's been Sallie Mae the whole time and still is.  The part where it's listed as something that may be considered negative has a discharge date in a few months.  I'm not sure how that happened because it says sold to another lender, shows I was not behind in payments.  I consildated. 

 

Make sure any loan they are reporting is actually yours.  At one point in time, after I fixed everything with them, they started trying to collect for recent college loan in New York.  After a few phone calls and letters I was just screaming at them!  I've never even been to New York.  I never did find out how it all happened but it was removed. 

 

Consumerfinance . gov is helping me with a collection issue now.  They contact the creditor and give them 15 days to respond. Maybe you could try them, they handle student loans, bank fraud, bill collectors.  It's kind of like the bbb process as far as showing you replies and documenting communication.  The Attorney General suggested them today.  It never hurts to have government backing when it comes to communication. 

 

Good luck!