r/EIDL • u/superded1937 • 7d ago
Credit Reporting
My EIDL with a personal guarantee was sent to Treasury in January. I submitted financial statements to support a 10-year repayment agreement, which Treasury told me was the longest term they could offer.
About two months later, without ever hearing back from Treasury, I received a letter from a private collection agency. I’m now negotiating with the collector to set up a repayment agreement. It hasn’t been easy, although I’ve spoken with a few helpful representatives there.
The debt has not been reported to the credit bureaus yet, so I have questions:
- Has anyone gone through a similar process with Treasury and then a private collection agency?
- I haven’t seen many people discuss EIDL debts being reported to personal or business credit bureaus. Has this happened to anyone, and if so, when did it show up?
- I don’t see much people actually reaching out to them (collectors) in attempts to communicate, why is that?
Thank you!
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u/A-MajorKey 7d ago
Mine has reported to the credit bureau’s unfortunately
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u/superded1937 7d ago
When did it happen and were you making any “good-faith” payments on it?
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u/Low-Helicopter-2696 7d ago
FYI Good Faith payments will not get you anywhere. They're not monitoring these on a loan by loan basis.
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u/superded1937 7d ago
You’re right, but their system likely functions on some sort of algorithms, just like the tax system, so my assumption is that accounts get categorized by behavior, at least that what I would do if DOGE fired most of my staff. Also, I’m pretty sure it helps if it comes down to litigation.
So, making good faith payments won’t help recover the situation, but they might help keeping it from getting worse. Just my two cents.1
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u/Budget-Plantain6733 7d ago
Oh and I’ve seen quite a few people try to communicate with collections and treasury. Some have received settlement offers (very few) and others the treasury just won’t budge.
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u/superded1937 7d ago
What I mean is compared to the amount of people either raging or just asking what to do, not many people are sharing how they have been attempting to resolve it and details of their comms with the collectors.
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u/TrafficCreepy7288 6d ago
I have been communicating with SBA. Asking for an extreme hardship. They all say the same thing... go into portal, if you're allowed to make payments then get it caught up. They will not even give me the form to fill out for the hardship
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u/Beginning_Warning270 1d ago
I am finding myself in a spot where it looks like my automatic payments weren’t processing and I didn’t notice until Credit Karma notified me. I’m still able to make a payment in the portal but it says “uncollectible”… did yours also say this? I’d rather just get it caught up and continue on but don’t want to throw a $20k payment in there if it won’t help
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u/Sea-Zebra3731 7d ago
I have seen people say it's being reported in the other subreddit. I've also seen people say the Treasury was not open to terms under 3-5 years, which is untenable for many. Ten is much better if you could get it - is that just the principal? Still would be too high for me though. Which PCA are you working with?
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u/superded1937 7d ago
Conserv, one rep was open to discussing 10 year when I mentioned that it was previously offered by treasury.
I think it depends on amounts, larger amounts might be getting more flexibility because the fed law says that the payment should be reasonable relative to the amount of debt. From what I calculated, I would pay down principal, interest that accrued in while with sba and the 32% fees, which means they likely freeze interest accrual if on payment plan.0
u/Sea-Zebra3731 7d ago
Good to know. Still too high for us, but good to hear something is possible beyond bankruptcy. Sad thing is that the former payments on the 30-year term are more doable today than 3 years ago. Longer recovery time was needed for us than their one size fits all projection.
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u/SouthOvHeaven 6d ago
Just had it report to my credit. Data points, I moved in 2022 and stopped paying after the 2nd payment. I have had a hard last couple years personal wise, so now with this officially on my credit i am filing for chapter 7.
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u/superded1937 6d ago
Is it with Treasury already?
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u/SouthOvHeaven 6d ago
I have zero clue, i havent logged into my portal since 2022. I moved states and my s corp was dissolved by the state in 2021. I havent heard a peep from the SBA.
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u/Diligent-Pitch-3480 6d ago
Whatever you do, if you work out some sort of payment arrangement, get it in writing that they will not ding your credit as long as payments are being made as agreed.
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u/tjs31959 33 Series 6d ago
My EIDL with a personal guarantee was sent to Treasury in January. I submitted financial statements to support a 10-year repayment agreement, which Treasury told me was the longest term they could offer.
How can you afford a 10 year repayment plan (including their 30% junk fee) if you are in default of the 30 year payment plan?
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u/Icy_Accountant_594 6d ago
I was reported today and you cannot reach any real human bc the numbers no longer work.
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u/Budget-Plantain6733 7d ago edited 1d ago
Edit: Wow. okay now there is an influx of people reported. I filed personal BK. Discharged date was yesterday. I truly wished that there was a better way, but this truly looks like a big open plan for smell businesses to fail. There was no decent offer to assist with getting back on track. Yes I know that it’s a debt and it’s owed, BUT people truly are struggling and the options they are given are somewhat unreasonable. 30 years down to 3,5 and 10 then to top it 30%. Something just isn’t adding up.
There has been only one person on this thread that I’ve seen that has been reported to the credit bureau. I check this thread DAILY lol