How to Fix a Student Loan Charge Off on Your Credit Report
Any kind of charge off on your credit report is very damaging to your credit score and your ability to obtain credit. Student loan charge offs are the worst to have on your credit report. The good news is there are several laws that have been enacted to protect consumers. There are federal credit laws and there are state laws. Interpreting the laws and knowing which apply to you can be confusing. This brings us to the most important consumer law:
Help is available
If you find yourself in a dispute, whether criminal or civil, you have the right to an attorney and a fair trial. A charge off is big deal. Any item affecting your credit report is a serious matter. You should not stick your head in the sand. Get yourself a good credit attorney and defend yourself. You have the same right to sue a creditor as they have to sue you.
Federal Law
The Fair Credit Reporting Act was enacted in 1970. It is the federal law that regulates consumer information. Along with the Fair Debt Collection Practices Act it exists to protect you, the consumer. Under the Fair Credit Reporting Act creditors have only seven years to report your delinquency to the credit bureaus. That is seven years from the time of the original first delinquency. Now seven years is a very long time and I say "only" seven years because many unscrupulous creditors and collection agencies will let the delinquency stay on your credit report until you take action against them.
State Law
Each state has its own laws regarding statute of limitations and debt. This means each state regulates how much time is allowed for a creditor to sue you for a debt. You might be surprised to learn that collection agencies sue people every day for charge offs (which then result in judgments) way past the statute of limitations. It is no ones responsibility but your own to raise the question of statute of limitations.
Validation
It is your right to ask a creditor for a validation of debt. If the charged off account is now in the hands of a collection agency by law they must provide you with the name of the original creditor and the amount owed.
Proof
Even if the creditor/collection agency has provided a validation of the charged off debt it is your right to request more information. By law they must provide you with a copy of any and all contracts you signed concerning the debt. You can also request them to provide you with a copy of the last bill right before the account was charged off.
About the Author:
Looking to repair a defaulted student loan? Get a free credit consultation.
Article Marketing
17 people like this article
