30 days late in 29 days?

[renegade92]

Hello, A year and a half ago, I gave away a car account, because I moved to the US, the person was late and I got a notice on July 23 I called the car company and he said that, they reported the credit bureau to the 30 days, the due date is may 28 and they paid on June 25, why did the caller tell me about 30 days before that if I didn't reach 30? 2 weeks ago I got the 30 mispay credit notice and a week later I got another impruvement account notice, and I got 32 points on the credit.

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karma

[RobertEG]

CRA policy is clear.

A late payment does not become reportable to the CRAs until it has reached at least 30 days past the billing due date.

That policy is clearly stated at numerous places in the common CRA reporting manual, the Credit Reporting Resource Guide.

While the account is still delinquent under the terms of the account agreement, if you have a delinquency that is reported but was paid prior to 30-days from the billing due date, simply submit a copy of the billing statement and proof of date of payment to the CRA, and cite the policy in their Credit Reporting Resource Guide, as basis for dispute of the reporting.  Removal should then be pro forma.

[Trudy]

Great job and Congrats!!! 

[zerofire]

This is one of those cases where you want to pull up your contract with the lender. More specificly looking for something called a grace period. If you have a couple of days of grace period then most people will abuse them. If you truly had a payment arrive 29 days after the end of the grace period and that grace period was as little as 2 days you would rightfully qualify for a 30 late as the payment was due over 30 days back.

[Aspireto850]

@RobertEG,

Pardon my laziness for doing my due diligence/research before asking you this question but inquire frankly it would ruin my Netflixing, myFICO’ijg and Chillin’ Saturday afternoon.. 😂

Does the FCRA relate to the day theboayment was MADE or when the Creditor POSTED it?

I ask because I was at the 28 day mark when I paid my NFCU CC which happened to be on a Friday. They didn’t post it until that Monday and I got a 30 day ding on my report and a 35 pt decrease. I’ve tried for months disputing this but no success.

Thanks

[RobertEG]

The FCRA does not set any reporting standards regarding when a late credit card payment becomes reportable to a CRA.

There is a provision of the CARD Act of 2009, that relates to when a payment becomes late per se, which states that if a payment is received by 5PM, it should be credited to that day, and if a billing due date falls on a holiday or weekend, then a payment received on the next business day is timely.

The CARD Act does NOT, however, include restrictions on when a late becomes reportable to the CRAs, which is covered only as a CRA reporting policy under their common credit reporting manual, the Credit Reporting REsource Guids, and occurs 30 days after the billing due date.

Technically, the CRA manual simply states that a 30-late is reportable if the payment is made 30-59 days after the billing due date.

It does not address the issue of when the 30th day is a weekend or holiday, and thus technically if the payment is at least 30 days late, regardless of whether the 30th day is a holiday or weekend, the manual would permit its reporting.

You could argue with the CRA that if the 30th day is a weekend or holiday, then the 30-day late policy is extended to the next regular business day, analogous to the payment crediting provision of the CARD Act relating to initial delinquency per se, but there is no such provision in the manual that supports extending that provision 30 days into the future, and thus applying it to the separate determination of when a delinquency becomes reportable to a CRA.

However, it is their reporting policy, and thus their interpretation would prevail......

[Aspireto850]

@RobertEG,

Awesome, awesome information. Thank you so much. 

I will try this approach because it was indeed a holiday weekend.