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Credit Report & Lender Initiated "Payment"


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So, I'm trying to clean up my credit report. The score is absolutely terrible, and it won't seem to go up. I think part of the problem is the set of student loans that defaulted and charged off several years ago. Last time I made a payment was 2009, and they remained unpaid on my report for the next six or so years. Last year, the lender (Wells Fargo) sent me a notice that they weren't collecting anymore and that I would get a 1099c in the mail that I'd need to report to the IRS. I'm insolvent, so I was able to avoid paying taxes on the amount forgiven.

The date they were first delinquent was seven years ago (well, it will be next month - they went into delinquency in February 2009). I never paid them over the years (various financial problems like unemployment and housing in security  prevented me).  Wells Fargo zeroed out the balances at the end of 2014 when they sent me the 1099c.

My question is: If these loans don't disappear from my credit report in the next few months (given their date of delinquency more than 7 years ago), can I get them removed even though the lender "paid" them at the close of 2014?

Right now, the trade lines look like a nuclear holocaust of late payments. There are about 6 late payments on each loan (there are four of them), as well as about four years of straight charge-off status.

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The reporting time does not have anything to do with the lender zeroing out the balance.  The date of first delinquency starts the clock.  When the debt first becomes past due, that's when the statute of limitations for reporting begins.  Student loans, with an exception, can stay on your credit reports for up to 7.5 years from delinquency.  There is an exception, and that is Perkins loans.  If you had a Perkins loan, it could stay on your credit report indefinitely until you pay off the total balance.  Based off of your post, I'd fix it at them falling off around August of this year.  I know also that while the 7.5 years seems to be the statute, some people have disputed items at 7 years and had them pulled off.  I cannot speak as to what they did specifically to get them removed, other than to say that they disputed them as past the reporting SOL.  Also I cannot speak as to what reason was actually used for the credit bureau's removing the accounts.  I only know that I've seen it happen.  Since Wells Fargo charged these off already, a dispute may or may not go your way at this time.  They no longer have a means to collect from you, and sometimes, when you dispute, the original creditor does not waste its time responding when it no longer has a dog in that fight, so to say.  Since it cannot collect, it does not benefit from keeping the account on your credit.  Other creditors will report to the very last day out of habit.  It really could go either way.


Either way, their zeroing out the balance should have nothing to do with reporting time.


Wheels up, 


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