Does CFPB Scare Lenders & Collectors Straight?

Anonymous · ‎03-06-2019

I've recently read that the Consumer Financial Protection Bureau lacks the "bite" of once upon a time. I've had some success using them directly and also invoking their name. Some DPs for your consideration & commentary:

1) I had an unpaid collection with Nationwide that I knew to be incorrect. Disputes with CRA & 609 letters did not produce results. Involving the CFPB (9/2018) did: collection removed. More details here.

2) I also had a paid collection with the same Collector. This was also incorrect for the same reasons as the first one. I called (2/2019) and let them know I planned to invoke the CFPB again and they volunteered to remove it. More details at end of the previous linked thread.

3) I have two small unpaid medical collections from the same provider due to fall off 2/2020. I felt this to be a billing error on their part & have called them (more than once); requested debt validation; sent 609; offered PFD. The last letter I sent them offering full PFD they ignored. I was resigned to waiting it out.

But after having success with the paid collection I decided to draft another letter. Excerpt:

In my previous letter to you (enclosed) I volunteered to pay this bill to make it go away. As you know a collection has an adverse affect on credit scores. Even small unpaid charges like these two likely cost me 40-50 Fico points. Today I am feeling less generous then when I wrote the previous letter. But I am still willing to negotiate.

My options, as I see it: 1) I can wait 11 months until January 2020 and request an Early Exclusion removal from Equifax; problem solved (but I must wait 11 months); 2) File a complaint with the CFPB ( and subsequently BBB, just because); I’ve recently had CFPB success -- against Nationwide Insurance, who had falsely reported me as owing a month’s premium from 2015 -- and feel this might be my most effective avenue; 3) negotiate with RCI to remove the unfavorable report; time is money & CFPB will cost me the time to file the complaint plus the 30+ days to await the result -- not bad, but without a 100% certainty of success. So as I said in the original letter: I will pay to make this invalid debt go away.

Note: I now put my email address on my header. I suspect had I done that the last time the supervisor would have responded to my PFD letter.

I got an email from the supervisor a few days later. He said he was researching and would get back with me by week's end. He did:

I was able to get your original exam reports from the facility and here is what happened. You did have two x-rays on 12/31; however, the second x-ray was not read by the radiologist until 1/1, and the system does not mark a radiology report as finalized until it has been read. That is why the 1/1 date showed instead of 12/31. I believe that your insurance should have paid.

We are going to ask the collection agency to remove the debt for our error, and it be deleted from your credit report. We will have that deletion request sent into the collection agency today, and it will take a day or two for them to process it. Then, it will take the credit bureau up to 30 days to delete it from your cred it report. It should be removed in 30-35 days.

I apologize for the inconvenience, and I thank you for your patience and respectfulness.

So all other avenues taken with these people got me nowhere. The first time I invoke the CFPB I get results. Is this coincidence? Yes, it's a small sample size to draw any hard conclusions but I am now successful three out of three times with the CFPB. You can argue, "Sure, but your cases were solid." Right. But that meant nothing before. They ignored me. These three times they did not ignore me.

I remember a comment made by an "executive" who started a thread about "behind the scene" at a big lender. Someone asked him how they handled CFPB inquiries and he said they were too much of a pain to deal with so he automatically removed whatever was being asked about.

I'd like it if others add their experience with the CFPB. Or offer perspective on mine.

Anonymous · ‎03-06-2019

I think they do put pressure on the lender and it can yield faster/better results.

I've used the CFPB and BBB together a couple of times and had success. Since I was using both at the same time, two variables are at play, making it impossible to tell which one yielded the result I was looking for. I definitely recommend that people go down this route though if they are having an ongoing issue that regular self-initiated requests aren't fixing.

MakingProgress · ‎03-06-2019

@Anonymous wrote:
I think they do put pressure on the lender and it can yield faster/better results.

I've used the CFPB and BBB together a couple of times and had success. Since I was using both at the same time, two variables are at play, making it impossible to tell which one yielded the result I was looking for. I definitely recommend that people go down this route though if they are having an ongoing issue that regular self-initiated requests aren't fixing.

I have had the oppisite happen. I have a 30 day late on EX and TU that I do not believe are valid. I had a car loan that I paid off in Feb 2014. I made my regular payment on 12/31/14. I always made my payment on the last business day of the month. I then paid it off on 2/11/14. I was marked as current through January, and then 30 days late in Feb. I had previous lates and worked with them. They offered that if I made 3 on time payment I would be brought current. I made those payments and I was reported as current until I paid off the loan.

I tried to goodwill the late payments and got a flat out NO to every one I sent. After the first round of goodwill requests the response was that we have previously responded to substantionally similiar disputes and will not investigate any similar dispute. I tried a CFBP complaint and the response to that was the same at to my goodwill requests.

At one point I was showing No 30 day late on EQ for 2/14, 60 days on TU, and 30 days on EX. It took me several letters to get someone to talk to me about this because they were ignoring everything from me. At that time the told me that their policy is to NEVER grant goodwill requests and they treat them as disputes. They said that even though they brought my account current they report it's actual status when you pay it off. So even though for a year and a half I was reported as current they reported me as late when I paid it off. The did change the 60 day late on TU to a 30 day late, of course the only info they reported to TU was when I was reported as late. They said EQ should show a 30 day late, but since it didn't show it they would not report it at that time, and they would do nothing about EX as they considered it correct.

FICO 8 Starting Score

Current Scores

Garden Goal is All Reports Clean – Achieved 11/26/20

Anonymous · ‎03-06-2019

@MakingProgress wrote:
@Anonymous wrote:
I think they do put pressure on the lender and it can yield faster/better results.

I've used the CFPB and BBB together a couple of times and had success. Since I was using both at the same time, two variables are at play, making it impossible to tell which one yielded the result I was looking for. I definitely recommend that people go down this route though if they are having an ongoing issue that regular self-initiated requests aren't fixing.
I have had the oppisite happen. I have a 30 day late on EX and TU that I do not believe are valid. I had a car loan that I paid off in Feb 2014. I made my regular payment on 12/31/14. I always made my payment on the last business day of the month. I then paid it off on 2/11/14. I was marked as current through January, and then 30 days late in Feb. I had previous lates and worked with them. They offered that if I made 3 on time payment I would be brought current. I made those payments and I was reported as current until I paid off the loan.

I tried to goodwill the late payments and got a flat out NO to every one I sent. After the first round of goodwill requests the response was that we have previously responded to substantionally similiar disputes and will not investigate any similar dispute. I tried a CFBP complaint and the response to that was the same at to my goodwill requests.

At one point I was showing No 30 day late on EQ for 2/14, 60 days on TU, and 30 days on EX. It took me several letters to get someone to talk to me about this because they were ignoring everything from me. At that time the told me that their policy is to NEVER grant goodwill requests and they treat them as disputes. They said that even though they brought my account current they report it's actual status when you pay it off. So even though for a year and a half I was reported as current they reported me as late when I paid it off. The did change the 60 day late on TU to a 30 day late, of course the only info they reported to TU was when I was reported as late. They said EQ should show a 30 day late, but since it didn't show it they would not report it at that time, and they would do nothing about EX as they considered it correct.

So wait, you were on time for a year and a half but because you weren’t always on time they said you were late when the account was paid off? That’s got to be illegal if they did. I can’t see how that could be allowed under the FCRA.

MakingProgress · ‎03-06-2019

@Anonymous wrote:
@MakingProgress wrote:
@Anonymous wrote:
I think they do put pressure on the lender and it can yield faster/better results.

I've used the CFPB and BBB together a couple of times and had success. Since I was using both at the same time, two variables are at play, making it impossible to tell which one yielded the result I was looking for. I definitely recommend that people go down this route though if they are having an ongoing issue that regular self-initiated requests aren't fixing.
I have had the oppisite happen. I have a 30 day late on EX and TU that I do not believe are valid. I had a car loan that I paid off in Feb 2014. I made my regular payment on 12/31/14. I always made my payment on the last business day of the month. I then paid it off on 2/11/14. I was marked as current through January, and then 30 days late in Feb. I had previous lates and worked with them. They offered that if I made 3 on time payment I would be brought current. I made those payments and I was reported as current until I paid off the loan.

I tried to goodwill the late payments and got a flat out NO to every one I sent. After the first round of goodwill requests the response was that we have previously responded to substantionally similiar disputes and will not investigate any similar dispute. I tried a CFBP complaint and the response to that was the same at to my goodwill requests.

At one point I was showing No 30 day late on EQ for 2/14, 60 days on TU, and 30 days on EX. It took me several letters to get someone to talk to me about this because they were ignoring everything from me. At that time the told me that their policy is to NEVER grant goodwill requests and they treat them as disputes. They said that even though they brought my account current they report it's actual status when you pay it off. So even though for a year and a half I was reported as current they reported me as late when I paid it off. The did change the 60 day late on TU to a 30 day late, of course the only info they reported to TU was when I was reported as late. They said EQ should show a 30 day late, but since it didn't show it they would not report it at that time, and they would do nothing about EX as they considered it correct.
So wait, you were on time for a year and a half but because you weren’t always on time they said you were late when the account was paid off? That’s got to be illegal if they did. I can’t see how that could be allowed under the FCRA.

In reality I never got caught up they just reported me as current for a year and half even though I was in reality late. The made an offer of 3 ontime payments and they would do that. They were really easy to work with while the loan was open not so much after it closed. Then on the last payment they report the late again. I agree it is sneaky and underhanded, not sure about the legality. I am going to make another round of goodwill attempts starting in Aug or September when all my other lates on that account will drop from my reports leaving only the one for 2/2014.

FICO 8 Starting Score

Current Scores

Garden Goal is All Reports Clean – Achieved 11/26/20

Anonymous · ‎03-06-2019

It’s definitely very shady for sure. I highly doubt that the FCRA allows them to choose when to say that you were late though. Either they needed to forgive the late altogether or report it when it happened. If you were current at the end, that’s how it needs to be reported. Hopefully you can get it fixed.

Anonymous · ‎03-06-2019

@Anonymous wrote:
Either they needed to forgive the late altogether or report it when it happened. If you were current at the end, that’s how it needs to be reported.

I don't think that's the case. Lenders are supposed to report accurate information. If at any point they "realize" that the information they are reporting or have reported is inaccurate, the expectation is that they'd then report it AS accurate. It's sort of like the opposite of a dispute. Someone sees an inaccurately reported late payment, they dispute it, the lender agrees and fixes it. They report after the fact the correct information. Same thing here, just the other way around... where they report it [inaccurately] as current for a length of time, then finally report it correctly as late. Perhaps their approach here was a bit shady, but I don't see it as being an issue if they ultimately reported the account accurately after not having done so for some time.

Anonymous · ‎03-07-2019

@Anonymous wrote:
@Anonymous wrote:
Either they needed to forgive the late altogether or report it when it happened. If you were current at the end, that’s how it needs to be reported.
I don't think that's the case. Lenders are supposed to report accurate information. If at any point they "realize" that the information they are reporting or have reported is inaccurate, the expectation is that they'd then report it AS accurate. It's sort of like the opposite of a dispute. Someone sees an inaccurately reported late payment, they dispute it, the lender agrees and fixes it. They report after the fact the correct information. Same thing here, just the other way around... where they report it [inaccurately] as current for a length of time, then finally report it correctly as late. Perhaps their approach here was a bit shady, but I don't see it as being an issue if they ultimately reported the account accurately after not having done so for some time.

I understand fixing the dates that were late but marking the last payment as late for something that would have already aged 1 1/2 years at that point is not “fair credit reporting” at all. It seems like something the FCRA would specifically be tailor made to block. Otherwise any creditor could sit there and forgive a late as long as you have the account and then throw it on there when you close it. Imagine if you had a credit card that was open for 10 years and you had a single 30 day late 7 years ago and you close the card and they mark your last payment as late.

Anonymous · ‎03-07-2019

I'm not saying they should mark the last payment as late unless the last payment is legitimately 30+ days late. If at some point during 7 years of the account being opened there was a late payment (say) 4 years ago that was never reported late, I take no issue with the lender marking that payment as late when the account is closed, as it should have been marked late 4 years ago and been that way all along.