Hello my sister had my name on a Sallie Mae loan, long story but now the collections agency, has offered settlement. My question is if I settle they have promised to relieve me of all obligations to the loan. But will they remove it from my credit report. Or will it still say charge off/ settled? And have they been known to find other ways to still go after the co-signer even after settlement?
This is an issue of needing a competent attorney to negotiate with the creditor. You don't want them to try to pull anything after the fact. I would not settle the matter until they put it in writting that they will remove this from your credit report. Additonally, under the Fair Credit Reporting Act, you can dispute the account with the credit agencies. The Creditor will have 30 days to respond.
If you were in fact a signor (i.e. you put yourself on the hook as a guarantor by signing the contract) on your sister's student loans with Sallie Mae, then you are just as responsible for the debt as your sister, because you are a co-signor.
I would definitely not give them any money until you have a settlement offer in writing which states that you are relieved of your obligation to pay the student loans, and this should be reviewed by a lawyer. As to the credit report, if this is not your debt, then you can dispute the negative reporting on your credit report under the Fair Credit Reporting Act, by sending a letter to all of the 3 major reporting agencies (Experian, Transunion, Equifax) and they have 30 days to respond and show that the reporting is correct.
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