I had a CIBC Student Loan back in 2001. Never once was I contacted about repaying this loan even though I had been a customer of CIBC for several years during the time the loan was suppost to be paid back.
My account ended up going to a collection agency in june. I noticed on my credit file I had an unpaid student loan that I was unaware of late in 2005. I contacted the CIBC Student Loans department to find out what was going on. I was told I could only speak with a collection agency named Alliance One LTD about this matter and could only make payments directly to that collection agency.
I contacted Alliance One LTD and made all the necessary aggangements to repay this loan off as quick as I possibally could, and I made my final settlement payment and was released of this debt on December 22nd.
Needless to say I no longer bank at CIBC. January 20th I went to my current bank to look into purchasing a home. I was then notifyed through my bank that I had a balance due to an unpaid CIBC Student Loan on my credit file.
I was shocked and suprized that this was happening to me. How could this still be on my credit file since June???
Turns out that CIBC after I made my settlement and was released of any more balances owed on my account, sent my file to another collection agency. They also went and reported to Equifax in January saying I still had a balance owing when I did not.
This credit file should have been off my record in June through Equifax. Even as I type this 20 months after it should have been removed from my file it still remains. I sent copies of my release letter to Equifax who is now starting to investagate the situation, but I havelittle faith in Equifax and CIBC. They are trying to tell me that this account will remain on my credit file until January.
When I protest and ask how is it possible for a company to update my credit file after I have already been released from it, Equifax shifts the blame to CIBC. When I contact CIBC they give me a number to a new collection agency that is "handeling" my file named Acount Recovery Corp.
I contacted the orgional collection agency Alliance One Ltd. To get this mess straightened out, however when I contacted them they sent me to a voice mail. I left several messages and never was contacted back. When I called to talk with a person and get some answers, I was yelled at, hung up on, and when my phone number showed up on their caller ID they stopped answering the phone. When I called back blocking my number, I was placed on hold for over 45 minutes or hung up on several times again.
Finally after a few weeks of trying, I was able to speak with someone who sent me a faxed copy of my release letter proving that I was released of this debt on December 22nd.
I then tried to contact Acount Recovery Corp. To let them know that they had incorrect information and that I was released of this debt. At first they tried to tell me that I had a secondary balance owing on my account and that is why this appeared on my credit file. When I questioned how I could possibly have a secondary balance on a student loan which I had already payed, they had no answer.
They then tried to tell me that there was overdue interest owing still from my orgional balance. I questioned how could there be interest owing on a balance which was already settled and released back in 2006? Once again they had no answer.
I was refered to a voicemail once again. I left messages several times a day for several days. Never once did anyone answer this phone line, even to this day I have not recieved a call back.
I contacted CIBC several times until they finally got someone on the phone line for me from Acount Recovery Corp, who gave me a fax number to send my copy of my release letter so they could "look into this matter" for me.
Now I sit and wait for someone to finally do something to fix this problem and have my good credit rating restored to where it rightfully should be. This is the only thing I have on my credit report which is negative and yet it has reduced my credit rating to nil.
I do not mind having this remain on my file for the proper amount of 6 years, I made the mistake of not doing my due dilligance to make sure all my loans were repayed. However how can CIBC justify having this on my record for almost 8 years and trying to tell me that it will remain that way until January? That is a total of almost 11 years!
Equifax has requested 20 business days to get this matter resolved, but claims it is upto CIBC to decide when this will be removed from my file. Even though the date of last activity in January is incorrect and should have never been on my file.
I have told Equifax that they must remove this from my credit file now and readjust my credit score to reflect this account being removed from June the proper date when it should have been removed. They must also restore the damage to my credit report that this has caused me by having this on my file for an extra 20 months. Regardless of having a balance or not, having an unpaid bank loan show up on your credit file does the same amount of damage. It is listed as an I9 on your credit file.
For 20 months and counting this has been damaging my credit score now. After the 20 buisness days are up if my score and file are not adjusted, I will have no other means but to persue legal action I guess.
Anyone who deals with CIBC, watch out for these types of business practices used by this bank and the collection agencies they use to recover debts. Regardless of how much money I maybe able to gain, compared to another bank, I will never use CIBC for any services ever again.
If anyone else has any information that maybe useful to my situation please respond to this warning.
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