Inaccurate Student Loan Reporting Can Have Lasting Financial Consequences
Student loans are one of the most commonly reported accounts on consumer credit reports. Unfortunately, they are also one of the most common sources of credit reporting errors.
A student loan that was paid in full may continue showing an outstanding balance. A loan that was transferred to a new servicer may appear twice. A loan that was never delinquent may suddenly show missed payments. In some cases, student loans that were discharged through bankruptcy continue to be reported as active debt.
These errors can make it more difficult to qualify for a mortgage, refinance your home, obtain a car loan, rent an apartment, or access affordable credit.
The Fair Credit Reporting Act (FCRA) requires consumer reporting agencies and the companies that furnish credit information to report accurate information. When inaccurate student loan reporting remains on your credit report despite a dispute, you may have a claim under the FCRA.
If inaccurate student loan information continues appearing on your credit report after you disputed the error, contact Francis Mailman Soumilas for a free case review.
Common Student Loan Credit Report Errors
We represent consumers whose credit reports contain inaccurate student loan information, including:
- Student loans reported twice
- Paid-off student loans still showing an outstanding balance
- Incorrect late payments or delinquencies
- Student loans reported in default when they are current
- Student loans continuing to report after bankruptcy discharge
- Duplicate accounts following consolidation or refinancing
- Incorrect account balances
- Payment history errors after a loan servicing transfer
- Student loans belonging to someone else appearing on a credit report
- Incorrect account status after loan rehabilitation or forgiveness
While every situation is different, these reporting mistakes can have a significant impact on your financial future.
Why Student Loan Reporting Errors Happen
Unlike many other types of debt, student loans often change over time. Loans may be transferred to a different servicer, consolidated, refinanced, rehabilitated, or discharged. Each change requires information to be updated accurately with the nationwide credit reporting agencies.
When that process breaks down, inaccurate information can remain on your credit report long after the underlying issue has been resolved.
We’ve seen reporting errors occur after:
- Loan servicing transfers
- Federal loan consolidation
- Private refinancing
- Bankruptcy proceedings
- Loan rehabilitation
- Administrative reporting mistakes
- Incomplete updates provided to the credit bureaus
In many cases, consumers have done everything they were supposed to do. They made their payments, completed the required paperwork, or successfully resolved their loans, yet inaccurate information continues to follow them.
How Student Loan Reporting Errors Can Affect You
Many people assume these errors only affect their credit score. In reality, inaccurate student loan reporting can have far-reaching financial consequences.
Depending on the circumstances, inaccurate reporting may affect your ability to:
- Purchase a home
- Refinance an existing mortgage
- Obtain an auto loan
- Qualify for personal loans
- Open new credit accounts
- Rent an apartment
- Obtain employment where a credit check is required
- Receive favorable interest rates
When duplicate loans or incorrect balances appear on a credit report, lenders may believe you have significantly more debt than you actually owe. Incorrect late payments or default status can also make you appear to be a greater lending risk, even when your payment history was entirely accurate.
What the Fair Credit Reporting Act Requires
The Fair Credit Reporting Act exists to help ensure that consumer credit reports are as accurate as possible.
The law requires consumer reporting agencies to follow reasonable procedures to assure maximum possible accuracy. It also places obligations on companies that furnish information to the credit bureaus.
If you dispute inaccurate information, the credit reporting agencies are generally required to conduct a reasonable investigation.
Simply receiving your dispute is not enough. The investigation must be meaningful, and if the information cannot be verified as accurate, it should be corrected or removed.
Unfortunately, consumers often discover that inaccurate student loan information remains on their credit reports even after filing a dispute.
What If You Already Disputed the Error?
Many of our clients contact us after trying to resolve the problem on their own.
They disputed the inaccurate information.
They provided documentation.
They waited for the investigation to be completed.
Yet the same inaccurate information remained on their credit report—or reappeared shortly afterward.
If inaccurate student loan information continues to be reported after a dispute, the issue may involve more than a simple clerical mistake. Depending on the circumstances, it may represent a violation of the Fair Credit Reporting Act.
You May Have a Case If
You may have a Fair Credit Reporting Act claim if:
- Your credit report contains inaccurate student loan information.
- You disputed the error with a credit bureau or furnisher.
- The inaccurate information was not corrected after a reasonable investigation.
- The reporting caused you financial harm.
Examples of financial harm may include:
- A denied mortgage or loan
- Higher interest rates
- Difficulty renting a home
- Employment consequences
- Damage to your credit reputation
- Other financial losses caused by the inaccurate reporting
Every case is different, and not every reporting error results in a legal claim. Our attorneys can evaluate your situation and determine whether the Fair Credit Reporting Act may apply.
Why Choose Francis Mailman Soumilas?
For decades, Francis Mailman Soumilas has represented consumers nationwide in Fair Credit Reporting Act litigation.
We understand how student loan reporting errors occur, how disputes are supposed to be handled under federal law, and the financial harm these reporting mistakes can cause.
We are not a credit repair company. We do not promise to improve your credit score or remove accurate negative information.
Instead, we evaluate whether inaccurate reporting may violate the Fair Credit Reporting Act and whether legal action may be appropriate.
Get a Free Case Review
If inaccurate student loan information continues appearing on your credit report after you disputed it, you do not have to simply accept the error.
Contact Francis Mailman Soumilas for a free case review.
Our attorneys will review your situation and determine whether you may have a claim under the Fair Credit Reporting Act.
