Did General Revenue Corp lie?

I asked this over in financial aid and no one seems to know the answer.

Back in Feb 2008 my neighbor was contacted by GRC (a company that specializes in the collection of delinquent student loans)
She was given the option of either wage garnishment or loan rehab. She chose the rehab program.

She was told that 9 payments all the delinquent information would be removed from her credit file and it was. In fact it was removed sooner than that.

She continued making the agreed upon payments and was offered a chance to "graduate" to the William D Ford program because she had been so successful with the rehab program. She filled out all the forms and was accepted.

After 10 months of not missing 1 single payment she gets a letter in the mail from Northwest Educational Loan Association stating that she had been reported as delinquent to the credit bureaus. This has to be a mistake as she has followed the rehab agreement to the letter.

She called her rep at GRC and the rep assured her it was in fact a mistake and there was nothing to worry about.

The next day she gets an email from score watch (myfico.com) saying that her score had dropped due to a change on her credit report. She checks it out and sure enough she is again reported as delinquent. Not only is she reported as delinquent she is reported as 120++ past due with the original amount owing. It's as if she never made a payment.

She again calls her rep which told her that since her loan is in the "processing phase" because it's going to be transferred from rehab to William D Ford that it will be re- listed and then removed, re-listed by the lender that purchased it, removed and then finally be re listed by grc then be removed again for good.

Why would they remove, re list, remove re list etc...... Is that really how it works or did GRC lie? They are giving the report date as 11/2008

Thanks.

It sometimes take a couple of months for these types of things to be reported accurately.

Wait and check again in 60-days.

Just their procedure just keep a close eye on YOUR credit reports and keep up your diligence in getting it resolved. Did your "neighbor" get this offer in writing? If not she might not have a leg to stand on. If so send a copy to the credit bureaus and they will remove the history.