Private Collection Agency Compliance:
A loan that is paid off by a Consolidation Loan will also be reported by most credit bureaus as a “paid collection account.” Collectors must not state or imply to borrowers that the default information reported by the original lender (e.g., the bank that made the FFEL) or by the guaranty agency or Department will be deleted or expunged before the applicable 7-year period has run.. Adverse ... ................
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