Student Loan Problem - Automatic Stay and/or FCRA Violation? Nd help!

[macahs]

I sent out a dozen dispute letters, one for my husband to the co. he financed his student loans through.

The guy responded promptly w/ a letter basically stating they are under no violation for reporting a 30 day late (4 times in one month because that's how the loan is set up, mind you) during the bankruptcy.

I spoke with him today and he's actually being very nice and understanding. He does take the stance that they are perfectly fine to do this and it's not a violation of the Automatic Stay (saying he's 100% confident) but admitted he is not as up on the FCRA.

We filed BK in Oct. 05, which is the month they reported the 30 day late, although after month after that they've been reporting correctly. He thinks the 30 day was reported because the meeting w/ the creditors had not happened yet, therefore their system reported correctly.

He is willing to make any necessary changes if I can prove they are in violation.

Any ideas? If they are, can I get the exact statute and/or law so I can show him it? Like I said, he's being really good about this (which is not like most people) and wants to help if they are in the wrong.

Thanks for your feedback!

P.S- Just because this is a student loan (federal) doesn't exclude them from the Automatic Stay and FCRA laws, correct?

[lrprn]

I sent out a dozen dispute letters, one for my husband to the co. he financed his student loans through.

The guy responded promptly w/ a letter basically stating they are under no violation for reporting a 30 day late (4 times in one month because that's how the loan is set up, mind you) during the bankruptcy.

I spoke with him today and he's actually being very nice and understanding. He does take the stance that they are perfectly fine to do this and it's not a violation of the Automatic Stay (saying he's 100% confident) but admitted he is not as up on the FCRA.

We filed BK in Oct. 05, which is the month they reported the 30 day late, although after month after that they've been reporting correctly. He thinks the 30 day was reported because the meeting w/ the creditors had not happened yet, therefore their system reported correctly.

He is willing to make any necessary changes if I can prove they are in violation.

Any ideas? If they are, can I get the exact statute and/or law so I can show him it? Like I said, he's being really good about this (which is not like most people) and wants to help if they are in the wrong.

Thanks for your feedback!

P.S- Just because this is a student loan (federal) doesn't exclude them from the Automatic Stay and FCRA laws, correct?

Yes, student loan lenders have to abide by the automatic stay and FCRA laws just like every other non-secured lender.

Were payments requested by the student loan creditor during your automatic stay? Or did they just report the loan's status between your filing and discharge?

I did some intense Net research but didn't find anything specific to your question. However, I'm thinking that reporting the status of student loans to the credit bureau before discharge is not a violation of the automatic stay because they are just reporting the status of the loan, but requesting payment for student loans between filing and discharge would definitely be a violation of the automatic stay. Others here may have a different take on this, though - jump in if you do.

[macahs]

LRPRN-

Thanks for the reply.

No, they've been excellent in that regard and have never once attempted collection. In fact, they automatically initiated a forebearance (not sure if this is standard procedure anyhow) so we have not been obligated to make payments the whole time in BK.

All other months they show "ok" status so the gentleman that I spoke w/ today thought it may be because it was before the 341 meeting. However, from what I've read - you are protected under the Automatic Stay the minute you file your petition, not once you've had the 341 meeting.

This is where I'm confused I guess. If it's against either the Automatic Stay and/or FCRA (have to figure out which one) to report lates during a BK - then I would think this specific creditor (even though a secured debt) is under the same obligation?

Thanks for trying to find information for me, that's really kind. I'm doing the same as we speak. This stuff can get so confusing! I'm trying to find something concrete I can show him so he can take it off our report.

I'm at least grateful he's working with me and seems to really care if they are reporting something incorrectly.

Thanks again!

[macahs]

I think I am going to position it that the Automatic Stay begins immediately when the petition is filed. It does not matter that they were waiting for they reported before the 341 meeting of creditors. That was his position.

This would be so much easier if the Automatic Stay clearly stated that reporting lates during a BK is a violation - instead of everyone interpreting the law differently.

[CindyLou]

My student loans reported "included in bankruptcy" immediately upon my filing due to the automatic stay. I put them into forebearance pre-bk upon their advice so that no late payments would be repored. Once the BK was over I had to write a letter and they corrected the "included in bankruptcy" to current status. I took them out of forebearance and began repayment. Who is your lender? Sallie Mae was good to my brother who was in your situation. He asked to back date the forbearance and they removed the late payments. If its Sallie Mae, then try asking and they may help you out. Good luck.

[Gastylin]

Loan placed in collections during BK

My student loans reported "included in bankruptcy" immediately upon my filing due to the automatic stay.

How can it be that my loan was accelerated and placed in collections DURING BK? The $%^& collection co (DCS- any other bad experiences here?) received my loan in March- I filed in Feb/discharged in June- now they are not willing to work on a payment/ rehabilitation agreement and are going to seek garnishment. (They came back with three options- pay in full $36k, yeah sure!- pay half, still choking- or pay 1/4- actually threw up!) They want to play hardball and this is how I ended up with my head in the sand and ultimately in BK!

Atty no help. Now I'm going to call the gaurantor- Florida Dept of Ed, who WAS notified of my BK- and tell them of the automatic stay violation and ask that they rescind the loan and I will work with them. Its a long shot but I just got a nice job and dont want this hanging over me.- (interesting note- according to student loan locator- it was passed along to yet another agency three weeks ago- perhaps DCS is clueless?)

Any insight here?

[JusticeForAll]

Most of my creditors reported past due's till the day I was dicharged. I have consulted 3 different attorny's on this subject and was told by all three that reporting past due's in not considered a collection action and therefore not in violation of the automatic stay.

However, I was unable to verify this myself, other than talking to 3 different BK attorney's.