Hello Fico'ers,
So I have a question because I feel like I'm missing something here. My girlfriend has a car loan through GM financial. She has had The loan for about 6 months. This morning she gets a notification that there was a change to for credit file. Upon checking she sees that there's this brand new 30-day late payment showing up and in terms of derogatory information, it's the only thing she has.
She called GM financial and asked why this was on her credit. The lady from GM financial told her that there was a partial payment received for her car payment in March of this year. She paid that partial payment a little early so when it came time for the payment to be actually due it would be unless you would have to take out of her bank account right? The lady from GM said that the remaining balance that she paid on the due date was kicked back. Now besides the fact that she should have been aware that his payment was kicked back, here's my question.
When she paid her April payment, wouldn't a portion of that payment have to go towards the remaining balance of March before satisfying that April was paid in full? If I'm losing you then looking at like this:
MONTHLY PAYMENT = $400
MARCH 2023:
DUE: $400
- PAID: $275
---------------------
DUE: $125
APRIL 2023:
DUE: $400 (April's full pymt)
- MARCH: $125 (brings current)
---------------------------------
APRIL DUE: $275
Do you see what I mean from the example above? Her payment is due on the 29th of every month. She paid April's payment on April 19th - March 29th to April 19th is not 30 days. At least from what I know, and then go to make the next month's payment that next month's payment will take care of the previous month to bring it current - am I missing something here?
Any help would greatly be appreciated because honestly I am so lost as to why they are dinging her with a 30 day
Starting Score: 570
According to what you laid out, I don't see where you should be late. I'd get them back on the line and try to figure that out. If I have a balance, then make a large payment, I would definitely expect it to be applied FIFO unless it were stated differently in the terms laid out in the promissory note or loan agreement. After running through it, I would ask them about removing or correcting that 30-day late mark, if only off of goodwill.
My question is: Why is she just sorting out March's payment in June? Were there no notices? I only ask because I am used to all sorts of pestering emails and notifications before a payment is delayed enough to be reported.
@Legally_Speaking2512 wrote:
MONTHLY PAYMENT = $400
MARCH 2023:
DUE: $400
- PAID: $275
---------------------
DUE: $125
APRIL 2023:
DUE: $400 (April's full pymt)
- MARCH: $125 (brings current) <<< This should be a (+) to bring it current
---------------------------------
APRIL DUE: $275. $525 plus fees
Do you see what I mean from the example above? Her payment is due on the 29th of every month. She paid April's payment on April 19th - March 29th to April 19th is not 30 days. At least from what I know, and then go to make the next month's payment that next month's payment will take care of the previous month to bring it current - am I missing something here?
Any help would greatly be appreciated because honestly I am so lost as to why they are dinging her with a 30 day
March remaining payment was kicked back on the 29th.
April payment is now due, in addition to March remaining balance plus late fees. In April the full $400 was paid. Still leaving March remaining balance that was kicked back plus fees.
May payment is now due... making March remaining balance and late fees 30 days past due that were not paid in full in April.
June it get reported to credit bureaus.
@PayAndProsper wrote:According to what you laid out, I don't see where you should be late. I'd get them back on the line and try to figure that out. If I have a balance, then make a large payment, I would definitely expect it to be applied FIFO unless it were stated differently in the terms laid out in the promissory note or loan agreement. After running through it, I would ask them about removing or correcting that 30-day late mark, if only off of goodwill.
My question is: Why is she just sorting out March's payment in June? Were there no notices? I only ask because I am used to all sorts of pestering emails and notifications before a payment is delayed enough to be reported.
That's exactly what I asked her as well. She showed me her call log where she had just talked to them in May and not one thing I said about this alleged late payment. I definitely plan on telling her to get them on the line bc something's not right here. I could understand if she missed an entire month like skipped March all together, paid April and May, even then her account wouldn't even be eligible for a 30-day until the end of this month you know?
@sznthescore wrote:
@Legally_Speaking2512 wrote:
MONTHLY PAYMENT = $400
MARCH 2023:
DUE: $400
- PAID: $275
---------------------
DUE: $125
APRIL 2023:
DUE: $400 (April's full pymt)
- MARCH: $125 (brings current) <<< This should be a (+) to bring it current
---------------------------------
APRIL DUE: $275. $525 plus fees
Do you see what I mean from the example above? Her payment is due on the 29th of every month. She paid April's payment on April 19th - March 29th to April 19th is not 30 days. At least from what I know, and then go to make the next month's payment that next month's payment will take care of the previous month to bring it current - am I missing something here?
Any help would greatly be appreciated because honestly I am so lost as to why they are dinging her with a 30 day
March remaining payment was kicked back on the 29th.
April payment is now due, in addition to March remaining balance plus late fees. In April the full $400 was paid. Still leaving March remaining balance that was kicked back plus fees.
May payment is now due... making March remaining balance and late fees 30 days past due that were not paid in full in April.
June it get reported to credit bureaus.
But I would think it would be first in first out type payment system. That would be like her owing a balance for March for the balance due and say she paid every payment for the rest of the loan on time. I don't think they would allow her to owe a balance from March still for the remainder of the loan. So as soon as she paid her balance in April the remaining balance of March should have been taken care of and then April would be still due by $125 plus fees. They contacted her in May about the in May about April's late fee because April was late by a week because she still hadn't realized that the remaining March balance was kicked back. So when she paid her full April payment she thought it was a done deal but she still really owed $125 for a payment which made it late. As soon as she talked to them on the phone she paid the late fee. They never once mentioned a balance being due for March.
I do see what you're saying but with the FIFO I just don't understand . Any loan I've ever had, even before I filed bankruptcy and fixed my credit, any payments made went to the previous month(s) balance?? Anyway, I do appreciate the insight. I just need her to get on the phone and give them permission to speak with me so I can figure out what's going on.
@Legally_Speaking2512 wrote:Hello Fico'ers,
So I have a question because I feel like I'm missing something here. My girlfriend has a car loan through GM financial. She has had The loan for about 6 months. This morning she gets a notification that there was a change to for credit file. Upon checking she sees that there's this brand new 30-day late payment showing up and in terms of derogatory information, it's the only thing she has.
She called GM financial and asked why this was on her credit. The lady from GM financial told her that there was a partial payment received for her car payment in March of this year. She paid that partial payment a little early so when it came time for the payment to be actually due it would be unless you would have to take out of her bank account right? The lady from GM said that the remaining balance that she paid on the due date was kicked back. Now besides the fact that she should have been aware that his payment was kicked back, here's my question.
When she paid her April payment, wouldn't a portion of that payment have to go towards the remaining balance of March before satisfying that April was paid in full? If I'm losing you then looking at like this:
MONTHLY PAYMENT = $400
MARCH 2023:
DUE: $400
- PAID: $275
---------------------
DUE: $125
APRIL 2023:
DUE: $400 (April's full pymt)
- MARCH: $125 (brings current)
---------------------------------
APRIL DUE: $275
Do you see what I mean from the example above? Her payment is due on the 29th of every month. She paid April's payment on April 19th - March 29th to April 19th is not 30 days. At least from what I know, and then go to make the next month's payment that next month's payment will take care of the previous month to bring it current - am I missing something here?
Any help would greatly be appreciated because honestly I am so lost as to why they are dinging her with a 30 day
If the March payment was due March 29th, and it was not paid in full until April 19th, that sounds late to me.
Nevertheless I would ask them to remove the late payment report, as it was based on a misunderstanding.
@SouthJamaica escribió:
@Legally_Speaking2512 wrote:Hello Fico'ers,
So I have a question because I feel like I'm missing something here. My girlfriend has a car loan through GM financial. She has had The loan for about 6 months. This morning she gets a notification that there was a change to for credit file. Upon checking she sees that there's this brand new 30-day late payment showing up and in terms of derogatory information, it's the only thing she has.
She called GM financial and asked why this was on her credit. The lady from GM financial told her that there was a partial payment received for her car payment in March of this year. She paid that partial payment a little early so when it came time for the payment to be actually due it would be unless you would have to take out of her bank account right? The lady from GM said that the remaining balance that she paid on the due date was kicked back. Now besides the fact that she should have been aware that his payment was kicked back, here's my question.
When she paid her April payment, wouldn't a portion of that payment have to go towards the remaining balance of March before satisfying that April was paid in full? If I'm losing you then looking at like this:
MONTHLY PAYMENT = $400
MARCH 2023:
DUE: $400
- PAID: $275
---------------------
DUE: $125
APRIL 2023:
DUE: $400 (April's full pymt)
- MARCH: $125 (brings current)
---------------------------------
APRIL DUE: $275
Do you see what I mean from the example above? Her payment is due on the 29th of every month. She paid April's payment on April 19th - March 29th to April 19th is not 30 days. At least from what I know, and then go to make the next month's payment that next month's payment will take care of the previous month to bring it current - am I missing something here?
Any help would greatly be appreciated because honestly I am so lost as to why they are dinging her with a 30 day
If the March payment was due March 29th, and it was not paid in full until April 19th, that sounds late to me.
Nevertheless I would ask them to remove the late payment report, as it was based on a misunderstanding.
I think some of the language OP used in laying out the issue could be a bit clearer. That said, even using your interpretation, rules are rules, and 21 days late is not 30 days late. Getting bumped up to a penalty APR would be appropriate in that scenario, but not having a 30-day late mark left on one's CR.
I think what OP was trying to convey, and @Legally_Speaking2512 correct me if I am wrong, is that if there were $125 left to pay on the March payment of $400 with a due date of March 29th (per your example), and on, say April 5th one made a $400 payment to the same company, one would think that the first $125 would go towards the outstanding balance from March, not that they would apply the full $400 to April and then come back to you like "that was nice, but where is my March money?"
Either way, I agree with @SouthJamaica in that if it was a genuine mistake and there has been no prior issues, it should not be a big deal to ask them to forgive that. I only stress going through the motions of figuring out exactly what happened so as to never have a repeat. Because, surely, if it becomes a repeat issue, they are much less likely to be willing to forgive in the future.