Derogatory Reporting by Utility Company

Anonymous · ‎02-08-2015

I recently received a letter from American Express stating that they were reducing my credit limit due to serious delinquency reported by Equifax. I just reviewed my Equifax CR and found that my electric utility, National Grid, has been reporting a serious delinquency since Aug 2014. This has put my credit into a tailspin.

In July 2014 I entered a partial payment agreement with National Grid. However, they are reporting 120+ days past due with a past due balance. In the comment section of my CR is says "Paying under partial payment agreement, 120 days past due". Sadly, until now I didn't even know that utility companies reported to the credit bureaus. This is still an open account and NG is still my electric provider.

I was out of work for a good length of time. During that time, I did everything in my power to successfully pay my all loans and credit cards on time while keeping my home. Fortunately I HAD a lot of savings. Once the savings depleted, I then stared to rely heavily on credit cards to cover everyday living expenses (groceries, utilities, car insurance, etc). Now that I'm back to work, I'm really struggling to dig myself out. I'm way overextended and I believe that refinancing my current mortgage is probably my ONLY option. My current mortgage rate is 6.125% over 30 years. I've had it for 7.5 years and have at least 30k equity.

Today I discovered that my FICO score has been reduced to 618 as a result (mostly) of National Grid reporting months of serious delinquency to Equifax. And yes, my Debt to Credit Ratio is now way too high. On a positive note, all of my mortgage, installment and revolving accounts have ALWAYS BEEN PAID ON TIME.

I'm looking for some solid advise -

1) What can be done to have National Grid to remove the derogatory reporting from my CRs?

2) How will this impact my ability to potentially refinance my home and consolidate my debt?

Thank you.

mitchblue · ‎02-08-2015

@Anonymous wrote:
I recently received a letter from American Express stating that they were reducing my credit limit due to serious delinquency reported by Equifax. I just reviewed my Equifax CR and found that my electric utility, National Grid, has been reporting a serious delinquency since Aug 2014. This has put my credit into a tailspin.

In July 2014 I entered a partial payment agreement with National Grid. However, they are reporting 120+ days past due with a past due balance. In the comment section of my CR is says "Paying under partial payment agreement, 120 days past due". Sadly, until now I didn't even know that utility companies reported to the credit bureaus. This is still an open account and NG is still my electric provider.

I was out of work for a good length of time. During that time, I did everything in my power to successfully pay my all loans and credit cards on time while keeping my home. Fortunately I HAD a lot of savings. Once the savings depleted, I then stared to rely heavily on credit cards to cover everyday living expenses (groceries, utilities, car insurance, etc). Now that I'm back to work, I'm really struggling to dig myself out. I'm way overextended and I believe that refinancing my current mortgage is probably my ONLY option. My current mortgage rate is 6.125% over 30 years. I've had it for 7.5 years and have at least 30k equity.

Today I discovered that my FICO score has been reduced to 618 as a result (mostly) of National Grid reporting months of serious delinquency to Equifax. And yes, my Debt to Credit Ratio is now way too high. On a positive note, all of my mortgage, installment and revolving accounts have ALWAYS BEEN PAID ON TIME.

I'm looking for some solid advise -
1) What can be done to have National Grid to remove the derogatory reporting from my CRs?
2) How will this impact my ability to potentially refinance my home and consolidate my debt?

Thank you.

The most important thing is that you saved your home. I wish I could offer advice but that's a bit outside my knowledge. Good luck..

FICO® 8 Scores 821 FICO® 9 Equifax 826 (Updated 02-7-23)

Anonymous · ‎02-08-2015

I have saved my home to this point.....but unless I can refinance, I am probably at the end of my rope. My income isn't enough.

Anonymous · ‎02-08-2015

Visit the rebuilding forum to get information on Pay For Delete (PFD) and Goodwill letters. If you have lates reporting that have already been payed, a goodwill letter to the lender might be suitable. No guarantee it will work, but without removing the derogs from your report, a refinance at a good interest rate is very unlikely.

Unfortunately, credit problems can spiral out of control. One missed or late payment can plummet your score and make options like refinancing or getting additional credit difficult. Once in a difficult position, it can be hard to dig your way out of it. Other than the goodwill letter, there is not much else I can advise based on the information provided. A few things to consider:

1. What is your current level of debt? What are they for? If you have to miss payments, it is probably better to save your car and home and let the others go delinquent. Missing payments is rarely a good idea, but if your debt is out of control that might be something to consider.

2. If CC debt, call your CC issuers and see if you can get a reduced APR deal. Sometimes you can work out a deal, but it usually works best before any payments are delinquent. Since you have lates not related to CCs, they might still work with you, but generally best to ask before any lates report for any debt.

3. Develop a budget and see if there is anyway you can squeeze out all needed payments for now. Do you really need cable? Maybe internet is something you absolutely need, but do you need it in more than one form (smartphone and dsl or cable for example). Can you tighten your belt and get less expensive food and eat out less? Sometimes the choices are hard, but they might be ones you need to make.

Hopefully you are able to figure something out and get out of your financial troubles. The good news is that credit is a lifelong process. Your credit might be horrible now and it might even get worse due to additional missed payments or even a BK. But people have gone through what you have and worse and still gotten stellar credit years later. Good luck and make sure you visit the rebuilding forum!

SunriseEarth · ‎02-09-2015

OP, I've moved your post to the Rebuilding Your Credit forum in order to help you get the best input possible on this issue.

AFAIK, the only way to stop the late reporting is to pay/settle the balance. If you this, you could request a PFD. If they refuse PFD, I think your circumstances would be good for GW removal attempts.

Anonymous · ‎02-09-2015

This probably isn't helpful, but I have a real problem with utility companies reporting derogatory payments to the credit bureaus. They're not extending credit and they don't report when you pay on time.

Here's what I would do. Is this an electric bill? Are these charges estimated or actual? Sometimes electric companies estimate your charges rather than reading your meter. If they're estimated charges, I would write a GW letter and ask them to delete the entries. Pretty much what everyone else has said. I wish I could be more helpful. Verizon Wireless ruined my credit over $55.

Anonymous · ‎02-09-2015

I would get a hold of the Utility company and let them know that your understanding of the payment arrangement was that it was enacted in order to PREVENT damaging your credit, and that had you been PROPERLY INFORMED of the implications of the payment arrangements, you would have dipped into your savings in order to pay it in full. You may have to go quite a ways up the food chain to get some results.

Anonymous · ‎02-09-2015

I totally agree! They never reported those 7 years when I was paying my utility on time! Not to mention that this is still an open account and I've never had my electicity turned off. It's one thing if you terminate your service and they can't collect. If I can't find a way to have this removed I will be headed for a quick downward plunge. I have to find a way to refinance my mortgage before it's too late.

Anonymous · ‎02-09-2015

Thank you NormanFH....I'm trying to reach to right person at National Grid now. Not easy at all!

Anonymous · ‎06-25-2015

@Anonymous wrote:
I recently received a letter from American Express stating that they were reducing my credit limit due to serious delinquency reported by Equifax. I just reviewed my Equifax CR and found that my electric utility, National Grid, has been reporting a serious delinquency since Aug 2014. This has put my credit into a tailspin.

In July 2014 I entered a partial payment agreement with National Grid. However, they are reporting 120+ days past due with a past due balance. In the comment section of my CR is says "Paying under partial payment agreement, 120 days past due". Sadly, until now I didn't even know that utility companies reported to the credit bureaus. This is still an open account and NG is still my electric provider.

I was out of work for a good length of time. During that time, I did everything in my power to successfully pay my all loans and credit cards on time while keeping my home. Fortunately I HAD a lot of savings. Once the savings depleted, I then stared to rely heavily on credit cards to cover everyday living expenses (groceries, utilities, car insurance, etc). Now that I'm back to work, I'm really struggling to dig myself out. I'm way overextended and I believe that refinancing my current mortgage is probably my ONLY option. My current mortgage rate is 6.125% over 30 years. I've had it for 7.5 years and have at least 30k equity.

Today I discovered that my FICO score has been reduced to 618 as a result (mostly) of National Grid reporting months of serious delinquency to Equifax. And yes, my Debt to Credit Ratio is now way too high. On a positive note, all of my mortgage, installment and revolving accounts have ALWAYS BEEN PAID ON TIME.

I'm looking for some solid advise -
1) What can be done to have National Grid to remove the derogatory reporting from my CRs?
2) How will this impact my ability to potentially refinance my home and consolidate my debt?

Thank you.

Hey FixProb,

Any update!? I have the same issue with United Illuminating. I was on the payment matching / energy assistance program. My payment was $88 a month. I paid that every month and found out last August that they hit my credit 4 months in a row with +120 days due! Please let me know.