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In trying to clean up the last few issues on my report, I have a question that I can't seem to find any answers to. Let's say a payment is due March 1st. If this payment is paid, posted, cleared, etc, on March 31st, is that accurately a 30 day late reportable late on your credit report? I understand it is "the 30th day" but I've noticed most companies go by the due date...as in, it would be late if not recieved by April 1st since the days in the month are different. The bill was always due on the 1st regardless of the days in the month obviously.
So, do i have grounds for dispute? This is an old baddie. Due on the 1st(in a 31 day month) and paid/cleared/posted/credited on the 31st. Opinions?
Thank you!
IMO, that's a pretty weak argument for a dispute. If it's an isolated late you should send a GW letter.
It is isolated. How is it weak? If the payments are due on the 1st every month, wouldn't that be the date they would use in determining late?
It looks like you're trying to win on a technicality, as if the same exact situation in Feb, Mar, and Apr should be treated differently because the number of days in the month are different. This is my interpretation of due on the March 1st. If paid on or before the 1st it is paid on time. If paid on the 2nd, it is one day late. If paid on the 31st it is 30 days late. If it were due Feb 1st it would be 30 days late if not paid on or before March 2nd. If due on April 1st it would be 30 days late if not paid on or before April 30th.
Actually, I'm saying the opposite. I do not think each month should be treated differently but instead expect them to all be treated the same. I wouldn't pay a bill due Feb 1st on March 2nd and expect to not be reported. For example, my other car loan is due on the 1st as well. Regardless of the month size, as long as it is paid by the 1st of the following month, it is not reported. I think it is more complicated to determine lates differently each month depending on the length of the month. After all, the due dates never change. Anyway, nevermind. I will try to good will.
@Paul2125 wrote:Actually, I'm saying the opposite. I do not think each month should be treated differently but instead expect them to all be treated the same. I wouldn't pay a bill due Feb 1st on March 2nd and expect to not be reported. For example, my other car loan is due on the 1st as well. Regardless of the month size, as long as it is paid by the 1st of the following month, it is not reported. I think it is more complicated to determine lates differently each month depending on the length of the month. After all, the due dates never change. Anyway, nevermind. I will try to good will.
I understand your point, and in fact there was a law passed a few years back (FCBA?) that required billing to be the same day of the month each month, because the billing dates used to 'walk' backwards each thirty-one day month because the credit card companies used a straight thirty day billing cycle.
But when it comes to lates, they are defined by days, 30, 60, 90, and not 1, 2, 3 months. Yeah, it may not make a lot of sense, but what makes sense about months having differing amounts of days? A lot of things about the whole system are just whacked.
@Anonymous wrote:
@Paul2125 wrote:Actually, I'm saying the opposite. I do not think each month should be treated differently but instead expect them to all be treated the same. I wouldn't pay a bill due Feb 1st on March 2nd and expect to not be reported. For example, my other car loan is due on the 1st as well. Regardless of the month size, as long as it is paid by the 1st of the following month, it is not reported. I think it is more complicated to determine lates differently each month depending on the length of the month. After all, the due dates never change. Anyway, nevermind. I will try to good will.
I understand your point, and in fact there was a law passed a few years back (FCBA?) that required billing to be the same day of the month each month, because the billing dates used to 'walk' backwards each thirty-one day month because the credit card companies used a straight thirty day billing cycle.
But when it comes to lates, they are defined by days, 30, 60, 90, and not 1, 2, 3 months. Yeah, it may not make a lot of sense, but what makes sense about months having differing amounts of days? A lot of things about the whole system are just whacked.
Agree with Norman.
Paul, if you are making payments after the due date (1 day or 30 days or any other day after the due date) then it is time to look at your income and your debt.
An isolated event - okay, mistakes happen.
Paying late on a regular basis - too much debt for your income. No one wants to hear that it is time for rice and beans, but paying after the due date is the canary in the room.
@Paul2125 wrote:Actually, I'm saying the opposite. I do not think each month should be treated differently but instead expect them to all be treated the same. I wouldn't pay a bill due Feb 1st on March 2nd and expect to not be reported. For example, my other car loan is due on the 1st as well. Regardless of the month size, as long as it is paid by the 1st of the following month, it is not reported. I think it is more complicated to determine lates differently each month depending on the length of the month. After all, the due dates never change. Anyway, nevermind. I will try to good will.
I think in practice some and perhaps most creditors report the same way as your auto finance company, but an account can legitimately be reported 30 days late prior to the next bill being due. Conversely, an account can be less than 30 days late after the following month's bill is due.
Paul, I hope you don't the wrong impression of this place. Everyone's comments are intended to help and support the person asking the question. I'm sure any comments regarding your past financial situation were meant as tough love. Think about it, we're all here because we've screwed up our finances at some point and have decided to make a change. No one is judging anyone. We're all just a bunch of fat kids at financial fat camp.