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60 days to "update" a balance?? WHY??

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New Contributor

60 days to "update" a balance?? WHY??

Can someoen please tell me why the law gives a creditor 60 days to report a payoff?  This just seems unnecessarily long. Creditors will instantly report when you screw them over, but yet they move like molasses to report a payoff? that just seems ridiculous.

Gardening since May of 2020








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Community Leader
Senior Contributor

Re: 60 days to "update" a balance?? WHY??

Can't say I disagree.



Platinum NPSL | Rose Gold NPSL | BCP | Delta Gold | Hilton Surpass | Hilton Honors | PenFed PCR | IT Cash | IT Chrome | GHSFCU Visa Plat | Quicksilver | Target | VS | Home Depot | Lowes | Sams MC | Firestone | Overstock | Kohl’s | Key Bank auto loan (2017 Audi A6 Premium Plus S-Line)





TCL $86,900 | Agg. Util under 5%
Message 2 of 6
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Super Contributor

Re: 60 days to "update" a balance?? WHY??

Just like insurance companies love taking your money and then dont want to pay out when you have a claim. Things that make you go Hmmmmmmmmmmm. Smiley Happy

Probably updates to their internal records and such.

Message 3 of 6
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Moderator

Re: 60 days to "update" a balance?? WHY??


@jwa77 wrote:

Can someoen please tell me why the law gives a creditor 60 days to report a payoff?  This just seems unnecessarily long. Creditors will instantly report when you screw them over, but yet they move like molasses to report a payoff? that just seems ridiculous.


Law only states that they must report accurate information in "reasonable" amount of time, years ago creditors only updated credit files quarterly and that was considered reasonable.

Message 4 of 6
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Super Contributor

Re: 60 days to "update" a balance?? WHY??


@gdale6 wrote:

@jwa77 wrote:

Can someoen please tell me why the law gives a creditor 60 days to report a payoff?  This just seems unnecessarily long. Creditors will instantly report when you screw them over, but yet they move like molasses to report a payoff? that just seems ridiculous.


Law only states that they must report accurate information in "reasonable" amount of time, years ago creditors only updated credit files quarterly and that was considered reasonable.


Seriously? Was the forum here back then? If so I bet there was some _____off posters. Glad I didnt know FICO then. Thanks for the info.

Message 5 of 6
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Legendary Contributor

Re: 60 days to "update" a balance?? WHY??

The law does not set a 60--day update/revision period.

FCRA 623(a)(2) is the relevant subsection of the FCRA, and only specifies that updates be made "promptly."

That unspecific period has generally been interpreted as within the next regular furnisher reporting cycle after their prompt processing of the information, including the clearing of any transaction with the appropriate banking institution.

 

____________________
"FCRA 623 (a)(2).  Duty to correct and update information.

A person who
(A) regularly and in the ordinary course of business furnishes information to one or more consumer reporting agencies about the person’s transactions or experiences with any consumer; and
(B) has furnished to a consumer reporting agency information that the person determines is not complete or accurate,

shall promptly notify the consumer reporting agency of that determination and provide to the agency any corrections to that information, or any additional information, that is necessary to make the information provided by the person to the agency complete and accurate, and shall not thereafter furnish to the agency any of the information that remains not complete or accurate


 

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