FCRA question

[kr43002]

So my payment got rejected, in which I resent the payment and it went through.

Between payments the creditor charged my installment account a late fee.

I paid them the minimum due on the statement, however now they are saying I still owe $15 (payment was $25 and reject payment fee was $15) and that I am late by 11 days.

Can they charge me a late fee and report me being late, even though I paid the minimum due on the statement?

[FireMedic1]

Well being 11 days late from statement date wont reflect a 30 day late. Print out your bank statement and look and see why it didnt go thru. Then. Call the bank and ask why it was returned. If you have documentation it was no fault of your own. Mail them your proof with Sharpie blocking out things that dont pertain to this matter. Especially your account #.  Send it certified return reciept

[kr43002]

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@FireMedic1 wrote:

Well being 11 days late from statement date wont reflect a 30 day late. Print out your bank statement and look and see why it didnt go thru. Then. Call the bank and ask why it was returned. If you have documentation it was no fault of your own. Mail them your proof with Sharpie blocking out things that dont pertain to this matter. Especially your account #.  Send it certified return reciept

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I already called self, they said they cannot refund the fee because I already "paid" it. The reason it got rejected is because the direct deposit was messed up and I ended up getting paid a week late, however it was set for ach on the day I recieved the direct deposit, so when I found out I couldn't cancel as It was to late.

My issue is I made the payment based on the statement. No where in the account do I see they charged me a missed payment fee. I had no idea they charged me it until I was notified that I missed my payment. By the time I will have the funds to pay the remaining ammount they are requesting I am going to be charged a late fee. I am not going to let it get to the point of going on my credit report.

[FireMedic1]

So it appears they tried to get the payment you entered and it beat your direct deposit. Bad timing. You wont get a 30 day late. It was 11 days late and they can charge you a late fee. Almost like floating a check. Dont pay anything until something is deposted first.

[kr43002]

I have already paid the $25 min payment on the statement, which has cleared both them and my bank. They however charged a rejected payment fee. They are stating that I am late by $15 because they had my $25 payment pay the fee instead of the loan payment

[kr43002]

The $25 payment was due on the 20th. $25 payment was recieved on the 19th

[FireMedic1]

Best practice for me just so nothing gets missed. Always pay a month ahead of time. Car, insurance, city utilities, HOA fees ect. In case I miss it or an emergency comes up Im covered and wont incur a late fee. Especially a 30 date late. JMO. I have a 2 month buffer with Chase Auto on my SUV for example. Stay ahead of the due dates and you'll be fine.

[bass_playr]

I second what firemedic said.  Once you build up some financial stability, it's very advisable to store up money for next month's bills--and even more than that when possible--in savings.  I live in the south, and we just were smack in the middle of Hurricane Ida.  We came through fine and the house did quite well, but you never know when you might end up out of work for things like this.  Having savings built up specifically to pay bills keeps you out of the problem of getting behind on everything again.  That's the very first thing we worked on when we were able.

[bass_playr]

Also, this is not an FCRA question as much as it is a contract question.  You mentioned a loan....well, that likely means you signed a promissory note?  If so, you need to read the conditions and terms within that note.  Promissory notes generally contain clauses that dictate how payments must be applied to the balance, fees, etc.  If your note requires them to apply payments to principal and interest before applying them to fees, then they violated the terms of their own contract.  Your promissory note holds the answers you're looking for.

[kr43002]

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@bass_playr wrote:

Also, this is not an FCRA question as much as it is a contract question.  You mentioned a loan....well, that likely means you signed a promissory note?  If so, you need to read the conditions and terms within that note.  Promissory notes generally contain clauses that dictate how payments must be applied to the balance, fees, etc.  If your note requires them to apply payments to principal and interest before applying them to fees, then they violated the terms of their own contract.  Your promissory note holds the answers you're looking for.

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The reason I considered it an FCRA question is because they were threatening to report me late if I do not pay on time. Which I believe would go against the FCRA as that would be reporting information incorrectly.