What canI do if Sallie Mae refuses to update my accounts?
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What canI do if Sallie Mae refuses to update my accounts?
I had loans that went into default with Sallie Mae (a student loan company) and they were directly working with a collection agency (the collection agency had to OK everything with SM). I settled (paid off) my loans as of last year with the collection agency (and I have supporting documentation), but SM didn’t update the account status as paid until this year (over 6 months late). Therefore, it has been negatively affecting my credit score and will affect my taxes (as I will have to file a 1099C for this tax year instead of last tax year). Is there anything I can do to get them to change this? Is there anything I can do about this?
Asked on March 22, 2011 under Bankruptcy Law, Washington
Answers:
MD, Member, California Bar / FreeAdvice Contributing Attorney
Answered 13 years ago | Contributor
Since you went to a collection agency, this means you were in arrears and they lawfully and properly classified and reported your loans as late or delinquent. Once the collection agency took over and you paid the loans off, Sallie Mae updated your record on the credit reports (and it does take some time to do so) as paid. If you wish to show this should have been updated prior to this year or taken off of your credit report entirely, you need to first research this matter with all four credit agencies. Yes, I said all four. This means you need to obtain your credit report from Experian, Trans Union, Equifax, and Innovis. Then on which ones this loan pops up, you file a complaint / grievance with the credit reporting agency and request it either be back updated to last year as paid or if you wish to ask them to delete the entry of the loan entirely.
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