laws on 30 day late reporting and any possible case precedents

[tmobileguy]

This question is more for maybe an attorney or someone very well versed (aka a RobertEG)in FCRA or maybe FCBA rules or regulations....

Are there any laws or case precedents that have been set as far as a banking or financial institutions and whether they can use their posting dates vs. actual received date when it comes to posting a 30 day late (or for that matter any lates)....I'll explain my situation and any advice or even better facts would be greatly appreciated...

I am fighting 3 30 day lates that Wells Fargo has posted on my mortgage with them from Jan 2012, Aug 2012, and Oct 2012....

My payment due date is the 10th of every month and the following is what happened.....

Payment was due 12/10/2011 and was paid on 1/8/2012 and then posted on 1/9/2012 by Wells Fargo (which is only 29 days)

Payment was due 7/10/2012 and was paid on 8/8/2012 and then posted on 8/9/2012 by Wells Fargo (which is only 29 days)

Payment was due 9/10/2012 and was paid on 10/9/2012 and then posted on 10/10/2012 by Wells Fargo (which is only 29 days)

Everytime I made sure to make the payment by the 29th day specifically so it would not hit my credit report...well the Oct payment was made at 2:50pm and the branch's cutoff time was 2pm (which that branch has switched to 4pm as of 2013)...the Aug payment was made at 4:50pm and that branch's cut off time was 4pm....

Everytime I paid cash...so the bank recieved the money and accepted it on the 29th day and I even have the coupon that is filled out by the teller showing the 29th day as payment made and received....

I can't find any info on any kind of case precedent and if not, I would argue in front of a judge that bank's posting policies should used for their internal operations, but should not affect consumers as far as credit reporting which is federally regulated....to allow a bank to affect a person's credit report because of how they choose to post would be giving them way too much power which banks have shown notoriously in the past that they are more then willing to abuse which is why a lot of reform was passed in 2010 stopping them from changing payment dates, allow customers to overdraw and charge them, over the credit limit fees, etc etc...Case in point, if a bank wanted to start dropping customers scores, they would have the power of using their posting dates and saying it takes 31 days for the payment to 'officially' post and thus they would be able to mark people late that actually paid their payment on the due date....

The date that should be used is the date that the bank accepted the payment, and the calender days from that date...Consumers should not have to research bank policies or be subject to a bank policy change and thus get reported for that reason...Consumers should know that if they make the payment on the 29th, 28th, 27th, etc etc day past the due date that they will not be marked as 30 days late....because they aren't 30 days late making the payment!!!

[RobertEG]

The Fair Credit Billing Act (FCBA) is your bible for all billing requirements on credit cards, and how to dispute any billing issue.

Under the FCBA, a creditor must credit all payments to your account on the date they're received, unless no extra charges would result if they failed to do so. Creditors are permitted to set reasonable rules for making payments, say setting a reasonable deadline for payment to be received to be credited on the same date, but if I recall correctly, the time cannot be earlier than 5 p.m. on the due date.  The FTC web site has a concise summary of rights under the FCBA, and of the dispute process.

As for reporting of monthly delinquencies, the FCRA does not directly address the issue of when they  become reportable to a CRA. 

However, the joint credit reporting manual used by each of the Big-3 CRAs, called the Credit Reporting Resources Guide, states clearly, with specific examples, that a delinquency must extend 30 days past the billing due date, NOT the billing date, in order to be a reportable 30-day late.

A consumer thus has a 30-day window after the account becomes delinquent under their account agreement in which to bring the account back into good-standing, and avoid a reportable late.

The FCBA in combination with the CRA definition of reporable lates should provide the basos needed to contest their reporting.

[tmobileguy]

Does the Fair Credit Billing Act cover mortgage loans also? From everything that I read, it only applies to 'open ended' accounts...

[tmobileguy]

anyone know the answer to this question...

[Duncanrr]

Your counting of days is inaccurate. Each one had the payment post on the 30th day (remember Dec and Sept have 31 days) and not on the 29th day as you indicated. I would check their policies on when payments get credited. If the payments get credited when it was made then you could dispute them. Otherwise you will have to GW them. The fact you paid in cash is irrelevant.

[guiness56]

If the payments posted on the 30th day then they are still within the 30 day window.  In order for it to be a 30 day late they would have had to post on day 31.

[LavendarL]

Why don't you just pay the bill on time?  It seems like a lot of effort to try to pay it exactly 29 or 30 days late?

[tmobileguy]

Duncanrrr, you might want to re-read my post and maybe re-count it on your fingers...payment was made on the 29th day...but Wells decided to post it on the 30th day...a payment due on 12/10/11 and paid on 1/8/12 is 29 days...count it...their cut off times and posting procedures are irrelevant to credit reporting...even as RobertEG specifically said, they have to post it that same day by Federal law unless it would not damage the consumer by posting it on the next day...

[tmobileguy]

LavenderL, I had my reasons...but now I pay it a month early because I am afraid they have other rules that they will continue to damage my credit if they can...besides, if everyone here did everything exactly like they were supposed to, I don't think this sub forum would exist...

So please don't cast stones unless you can walk on water...

[Duncanrr]

I said 30 days post. My counting was accurate. And I believe he said no extra charge and didn't say damage.

What is WF response to your inquires regarding the alleged late payments?