Credit Union and Reported lates

[_John_Doe]

I had an interesting conversation with a credit union I had a car loan with a few years ago. Full disclosure the loan has been paid in full but there were three late payments showing.

I initially contacted them about removing the lates as they are still on the credit reports (one will age off next year, two others the year after). They were polite but said "no, we can't do that".

After looking at the dates of the reported lates I noticed that two were a good two months after the last payment of the loan was due. I asked them to look into this since I can't see how I was 30 days late, back to back months, two months after the loan closed.

The conversation basically went that I was late, probably owed some late fees or something but they have no way to correct it if it was wrong and no way to prove it if they were right so why bother. No one will care about the lates, just let it age. Oh and if you do question it it could reopen the loan and reflect negatively on my file.

So they know thy are right but can't prove it but even if they were wrong they can't fix it so just let it go.

**bleep**?

[aurelie00]

Have you spoken to a manager or anyone else higher up in the Credit Union?

[_John_Doe]

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@aurelie00 wrote:

Have you spoken to a manager or anyone else higher up in the Credit Union?

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That conversation happened with the VP of Collections

[RobertEG]

Unfortunately, since the issue pertains to an installment loan, you cant use the FCBA dispute process, with its discovery rights, to dispute the billing.

You can, however, file a direct dispute with them under FCRA 623(a)(8). 

The problem with FCRA disputes is that they dont require the furnisher to provide documentation of their verification of accuracy, or "prove" the accuracy.

They are required only to investigate, and make a statement that they find the reporting accurate.

To pursue further would usually require bringing civil action, thus giving you access through the court's discovery process of their factual documentation.

You can at least get them on record, via a direct dispute, that they have conducted a reasonable inveestigation.  That could be useful should you pursue in the courts if it is determined that they had no factual basis for their verification.