I am looking for some help with this baddie on my reports. I have student loans through Key Bank. I have written to Key Bank to try to get this fixed, waiting for them to get back to me, but wanted to make sure I am handling this correctly.
Several years ago I thought I put both of my loans in forebearance, but apparently, according to them and I have no proof otherwise, I only successfully put one of the accounts in forebearance. Thinking they were in forebearance, I didn’t pay (plus ignored their robocalls to pay due to my financial troubles, lack of money, and general stupidity). So one of my loans defaulted (private loan). I am current and in god standing now on my remaining loan (owe 37k, no lates in a year and a half). The loan that defaulted was for about 25k and I settled with Key Bank in August 2015 for 8k. I have the letter from them saying it was settled, no problem. When negotiating the settlement, Key Bank rep verified and assured me that I have no other loans with them, as originally my school loans were several smaller ones that were consolidated – I wanted to make sure there were not any other ones hanging out there unpaid and defaulted, and I wanted to settle everything all at once.
All 3 CRAs report these accounts differently. Experian lists my current 37k loan correctly; also lists another entry for KeyBank NA as balance $ 0.00 and “legally paid in full for less than the full balance” which is correct – no problem. Then there is an entry for “Society Natl/PHEAA” (which I understand merged with Key Bank) in the same amount as my old charged off student loan ($ 25,085.00) that says account closed, charge off, but past due balance still listed at $ 25,085.00. It doesn’t say settled, paid, or anything when it should show a paid/settled and zero balance. The 25k balance shows on my CR as still due. Shouldn’t this last entry be updated as paid/settled and zero balance or deleted as a duplicate?
TransUnion reports my current 37K loan under “AES/Key Bank”, all correct. The charged off/settled student loan is listed under “AES/KeyBank USA”. It shows the balance is zero and that it was an account paid off. That is all correct. There is a third entry under “Key Bank USA”, which is just a duplicate. This one shows account paid, was a charge off (originally $ 25,085, the same amount as the other entry) and balance is zero, so appears to be a duplicate entry. I asked them to delete this since it is a duplicate.
Equifax no longer reports my current 37k loan; should this matter to me? The charge off is listed under “Key Bank”, balance is zero, and “account paid for less than full balance, paid charge off”, all fine. Then there is another entry, under “Key Corp Bank of Cleveland”, lists the balance of $ 25,085 as still due and payable, and states it is a charge off and “transferred to recovery”. No where does it state it was settled, or paid. I asked them to delete this as a duplicate entry as it is settled and already listed that way in the other entry.
I already wrote to Key Bank and I hope that was the correct thing to do. I sent them proof of the settlement and my CRs showing the entries I am asking them to delete. Any advice or suggestions? Am I asking for the right thing? Do you think my scores would go up much if that third entry showing unpaid charge off was removed?
Thank you in advance for any advice – I’ve learned so much from all of you on this forum. DH and I trying to buy a house next year so doing the clean up on our reports now.