Weird reporting behavior resulting in two 30+ day lates.

[JustinH]

I have an odd situation with an auto loan.

My payment due date each month is the 28th, which I had on autopay. Something got screwed up and I missed a payment. Here's the outline of the situation:

On August 28th the autopay payment was missed. Somewhere between September 27th and September 30th they reported a 30-60 day late missed payment. On October 10th I realized what had happened and paid both the August and September bills. Somewhere between October 1 and October 10, they reported me 30+ days late again for October.

This seems a bit sketchy to me. The standard for reporting is every 30-45 days. But this bank reported me 30-60 days for two separate months all inside of a few days. I assume I'm **bleep** out of luck because the FCRA doesn't regulate this behavior as far as I can tell. After disputing with the credit bureaus, they all quickly claimed it was valid. I filed a claim with CFPB against the bureaus, but I'm guessing they are going to tell me to piss off as well despite this being obviously anti-consumer. 

This has been brutal as my credit is otherwise very good (722 mortgage middle score) but having two 30-60 day lates in the last month has made finding a jumbo virtually impossible.

[babygirl1256]

Greetings JustinH ~ Welcome to the forum . . . Did you contact the bank prior to disputing with the CRAs? If so, what was the result? Perhaps you can contact the bank's Executive Office for a goodwill letter of removal if there are no other delinquencies on the loan. Which bank is your loan with (if you don't mind sharing)? Other forum members may have some experience dealing with that bank. I'm wishing you success in getting the late payments removed as I had GM financial remove 2 late reportings after I contacted the Executive Office and the issue was researched. I had actually transposed a number in my account number but I posed the issue that GM Financial didn't provide an opportunity to "confirm" the number entered and only reflected the last 4 characters and not all 9 characters of my account number. Management agreed and removed the late payments and I was very pleased!!! 

[Remedios]

Hi and welcome to the forums 

In order to avoid second late, you needed to bring your account current by September 28 (next due date).

Because you did not (already in default), it's another 30 day late because you paid on October 10th.  

For second late, you don't need to be late additional 30 days, it's all about not brining it up to current by the next due date. In your case, both missed payment are current month payment had to be received by September 28th, not October 10th 

You can try a GW approach if this was truly autopay failure. 

[JustinH]

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@babygirl1256 wrote:

Greetings JustinH ~ Welcome to the forum . . . Did you contact the bank prior to disputing with the CRAs? If so, what was the result? Perhaps you can contact the bank's Executive Office for a goodwill letter of removal if there are no other delinquencies on the loan. Which bank is your loan with (if you don't mind sharing)? Other forum members may have some experience dealing with that bank. I'm wishing you success in getting the late payments removed as I had GM financial remove 2 late reportings after I contacted the Executive Office and the issue was researched. I had actually transposed a number in my account number but I posed the issue that GM Financial didn't provide an opportunity to "confirm" the number entered and only reflected the last 4 characters and not all 9 characters of my account number. Management agreed and removed the late payments and I was very pleased!!! 

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I actually started with a GW letter, and unfortunately the credit union (a small local credit union) has been anything but helpful. This whole thiing started as the classic "I have autopay so shouldn't have a problem"... lesson learned.

[JustinH]

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@Remedios wrote:

Hi and welcome to the forums 

In order to avoid second late, you needed to bring your account current by September 28 (next due date).

Because you did not (already in default), it's another 30 day late because you paid on October 10th.  

For second late, you don't need to be late additional 30 days, it's all about not brining it up to current by the next due date. In your case, both missed payment are current month payment had to be received by September 28th, not October 10th 

You can try a GW approach if this was truly autopay failure. 

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Yeah, that doesn't even make any sense to me. It was 30+ days late ON the next due date. By that logic you will ALWAYS be 30 days late twice.

My original due date was 08/28. It was reported 30 days late for September. That all makes sense to me. The problem I have, is that they reported on 10/1 that it was 30 days late (month reporting October). Multiple months of 30 days late should be for ROLLING 30 day late payments, not a single 40 day late payment and a 10 day late payment. The initial 30 day late for September was reported on 9/28. They then reported a second month of 30 days late on 10/1. That's a THREE DAY lag between a single 30 day late and two 30 days late. 

As for the GW letter, I was told "We emailed you twice between then so we won't change it." 

[JustinH]

Maybe my original post isn't clear enough, so I'll use a more extreme example of why this really is a questionable practice.

Let's say I miss a payment, and the 30+ day late lands on September 30th. The financial institution reports the 30 day late at 5:00pm on September 30th. On October 1st at 9:00am the financial insitution reports a SECOND 30 day late for the month of October. I bring the account current at 5:01pm that day and it posts October 2nd.

This is obviously a contrived example, but it enables showing how ludicris this all sounds, especially when you "alter" the dates to map to the first 2 days of the month. In fact, this wouldn't even be possible if due dates were the 1st and 2nd as the only month in which you were (at any time) 30 days late was September (assuming the 30+ day late was September 1st, and the payment was made on September 2nd).

[Slabenstein]

To my knowledge, they just have to report what your delinquency status was at the time of the reporting.  So if they reported at the end of Sept and you were 30-59 days behind, that's a 30D, and if in October they switched to reporting at the begining of the month and you were also 30-59 days behind on that date, 30D is also the correct reporting status.  Why they changed the reporting date would be a question for the FI, if you can get them to answer it.

[babygirl1256]

Greetings Justin ~ So you are questioning the 2nd late payment, right? Is the Credit Union a federal credit union? If so, the National Credit Union Administration is an independent federal agency that regulates federal credit unions. I'm not sure what agency governs "state" credit unions -but- banks are regulated by the Office of the Comptroller of the Currency (OCC). I hope that you are able to resolve the issue.

[LooksAreDeceiving]

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@JustinH wrote:

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@Remedios wrote:

Hi and welcome to the forums 

In order to avoid second late, you needed to bring your account current by September 28 (next due date).

Because you did not (already in default), it's another 30 day late because you paid on October 10th.  

For second late, you don't need to be late additional 30 days, it's all about not brining it up to current by the next due date. In your case, both missed payment are current month payment had to be received by September 28th, not October 10th 

You can try a GW approach if this was truly autopay failure. 

---

Yeah, that doesn't even make any sense to me. It was 30+ days late ON the next due date. By that logic you will ALWAYS be 30 days late twice.

My original due date was 08/28. It was reported 30 days late for September. That all makes sense to me. The problem I have, is that they reported on 10/1 that it was 30 days late (month reporting October). Multiple months of 30 days late should be for ROLLING 30 day late payments, not a single 40 day late payment and a 10 day late payment. The initial 30 day late for September was reported on 9/28. They then reported a second month of 30 days late on 10/1. That's a THREE DAY lag between a single 30 day late and two 30 days late. 

As for the GW letter, I was told "We emailed you twice between then so we won't change it." 

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Did they actually email you regarding the late payment before it was reported 30 days late? 

[JustinH]

Update for the curious: It was determined the 30 day late for October was inaccurate. The credit union claimed it was a "reporting error", but needless to say, the feedback I received: rolling 30 day lates require that you are 30 days late twice. So if anyone runs into this, it is based on the due date of the following month. The first month will stick, since they did email me (got caught in the promotions filter in Gmail which I never check :/). But honestly, better result than expected.