Student Loan Litigation

1. Loan service changes: The loan has been transferred from one servicer to another and it shows up twice under different names.
2. Reporting Errors: Credit bureaus and loan services incorrectly or improperly update their information.
3. Consolidation issues: After consolidating a loan, the original loan and new consolidated loan may both show up, which looks like double the debt exists.

1. Incorrect Payment Status: Loans may be incorrectly reported as delinquent or in default, even if you’ve been making payments on time.
2. Misreported Loan Amounts: The balance or original loan amount may be overstated, making it seem like you owe more than you actually do.
3. Closed Loans Still Showing as Open: Paid-off loans or those that were closed during consolidation may still appear as active, artificially inflating your debt.

These inaccuracies can lower your credit score, affect your eligibility for new loans, and create long-term financial challenges.

Your Rights Under Federal Law

If you discover errors on your credit report, it’s essential to know that you have rights under the Fair Credit Reporting Act (FCRA):

1. The Right to Dispute Errors: You have the right to dispute inaccurate or incomplete information on your credit report. Both the credit reporting agency and the company providing the information (e.g., your loan servicer) are required to investigate your claim.
2. The Right to Accurate Information: Credit bureaus are legally required to maintain accurate and up-to-date records. If they fail to do so, they must correct the errors upon receiving notice.
3. The Right to Take Legal Action: If errors are not corrected after you’ve filed a dispute, or if the mistakes cause you harm—such as a denied loan or damaged credit score—you may be able to sue the responsible parties for damages.