Bank Branch Mgr, lied about loan

[singulardedication]

Well apparently a Branch Manager Lied to me or did not understand the product she was selling.

I'll avoid the Bank name which I have not ever mentioned on the board.  They are a smaller regional bank  ...Community Bank.

I got a [deposit] secured loan through them for $6k at a nice 3.6% intrest rate.  They did do a HP and told me that this Trade Line would not be reported to the CRA.  Well today it showed up today on EX to begin...

Its showing up under Revolving section on the Discover CMS, Balance $6k, Account Type: "Deposit Related" terms 36m, monthly...

Now the EQ CMS reports it on EX with:

Credit Limit:N/A
Balance:N/A
Comments:Installment Loan

I already have a Student loan Installment with 13% left remaining, and scheduled pay-off in about a year.

The Big question is how much does this new account hurt me?  I'd think yes since it raises my Total Debt.

How hard should I fight this with the Mgr, Bank President, BBB, ... to remove the TL? 

Any suggestions?  Total Debt with this TL would be about $24k and w/o $18k.

[RobertEG]

What was your AAoA prior to their reporting, and what effect did the addition of that TL have on your AAoA?  Was it significant?

At 6K, its reporting as either a revolving or installment TL would probably be the other significant factor, as revolving % util has much more effect than installment % of loan.

Being a secured loan, was it actually a line of credit as opposed to an installment loan?

LOCs are scored, at your level of credit, as revolving. 

As for remedy, it is an oral contract issue for which you can initiate civil action against them.  That is not an issue that a CRA can resolve through their reinvestigation rights under the FCRA.

[singulardedication]

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@RobertEG wrote:

What was your AAoA prior to their reporting, and what effect did the addition of that TL have on your AAoA?  Was it significant?

At 6K, its reporting as either a revolving or installment TL would probably be the other significant factor, as revolving % util has much more effect than installment % of loan.

Being a secured loan, was it actually a line of credit as opposed to an installment loan?

LOCs are scored, at your level of credit, as revolving. 

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from myFico EX: (before, need to wait to hit this report)

oldest 12 Years, 7 Months ago

   AAoA 8 years

   Negative was new credit already due to my 1m old PSECU Visa/PSL Combo counting as two accounts.

It is secured by a savings deposit.  Paperwork was signed 2/21, so I might be able to use the sub 30d to cancel and get the TL deleted?

I'm hopefull its just the Discover Fako CMS that is at fault at reporting it was revolving.

[llecs]

Do you know how to tell if a credit-related CSR or manager type isn't telling the truth? They are talking. And I don't think the manager was lying. He/she probably didn't know and only told you what you wanted to hear or maybe told you what they thought they knew.

I agree. You have no grounds for removal unless you got it in writing first.

Damage? Maybe 20 tops on a clean, well-rounded report, with most or all of that disappearing within a year. But in return you got the loan. Good trade-off if you needed it. Great rate too. In the long run, after it is paid off, you stand to have a well-aging TL which will help your credit.

Many CMSs do mis-report the account type. Based on what you posted, FICO will score it as an installment.

[FrugalRican]

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@llecs wrote:

Do you know how to tell if a credit-related CSR or manager type isn't telling the truth? They are talking. And I don't think the manager was lying. He/she probably didn't know and only told you what you wanted to hear or maybe told you what they thought they knew.

I agree. You have no grounds for removal unless you got it in writing first.

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This.

I can almost guarantee that the manager didn't know how it worked, how it'd report, or anything similar.

That branch manager should have referred you to a loan specialist within the company (no matter how small it may be).

Whoever that manager is, just takes your app and forwards it to someone else and then it looks good on their branch report that they got a loan out of someone, regardless of what effect it may have on you.

Lesson learned, albeit at a 3.6% interest.

It could have been much, much worse.