Early Termination Insurance Loss

[Anonymous]

Hello and Thank You for trying to help me figure this out.

In 2013 I leased a vehicle from BMW Financial which was totalled during an accident. My auto insurance covered the vehicle and BMW was paid.  I looked at my 3B report today and found that I have a serious deliquency of 60 days on this BMW account.  I have never been late with my payment to BMW.  Upon closer inspection I discovered I had no late payment but this account was closed with the negative description of Early Termination Insurance Loss.  This negative description is listed with Experian and Transunion.  Does anyone know if this is something which can be disputed or removed from credit report?  Also I cannot find this information listed anywhere on my actual credit report which I ordered from Experian and Transunion.  This info is only for on MyFico 3B report. Again, Thank You

[Anonymous]

I'd be far more concerned with the 60 day late payment as that can adversely impact your credit profile and score.  Comments don't impact score at all and are only seen upon a manual review.  Even upon a MR, one wouldn't assume anything negative from that comment IMO, as life happens and you still met the terms of your loan.

[arkane]

Seems to be a thing when a car is totalled and there's a lien on it:

http://ficoforums.myfico.com/t5/myFICO-Product-Feedback/Re-Early-termination-amp-insurance-loss/td-p...

http://ficoforums.myfico.com/t5/Rebuilding-Your-Credit/Early-termination-amp-insurance-loss/td-p/311...

[Anonymous]

Thank you both for the input.  On MyFico the BMW account states "a reported missed payment or negative description which indictes that an account has not been paid as agreed".  There is no late payment and I have reviewed the 3 credit agency reports which do not indicate any where that a late payment was received.  This BMW account is listed as closed paid satisfactorily.  My first thought was to dispute with CRA but I cannot point to anything on the actual report which is negative to dispute.  This error seems to only be with MyFico.

[Anonymous]

BrutalBody.  I completely agree for some reason this account is marked negative even though no late payment.  My Transunion and Experian scores are approximately 100 less then Equifax which does not show this negative account.  But this only seems to be on 3B report from Myfico.  If I pull the actual report the account is listed as paid satisfactorily closed.

[Kree]

Something similar is happening to me right now. I bought out a leased vehicle recently and through some paperwork errors the account had been marked for a payment in december even though the car had been bought out in november.  The account was updated to show closed in november, but still had a 30 day late notice on Transunion.  The reports did not actually show any lates on the account because they do not show months after November.  When I pulled my report from TU directly, it shows the late in December.

What I would assume is that it took a while for your insurance to pay BMW resulting in lates.  Once they were paid, they retroactively closed the account at the time the car was totaled, but the actual 30d and 60d were not properly removed. My working theory is that those months were likely reported by BMW as blank, as they should not have existed.  EQ properly updated your file by  replacing the months after the account was closed with blanks, but EX and TU left the original monthly notes.

EDIT: rereading your comment, it appears to be the opposite of my thoughts. Still think it might be retroactive closing date related.

[Anonymous]

Sounds like a MF issue... like somehow they're taking into consideration a comment on the account?  That shouldn't impact score, though, even from a CMS like MF, as a FICO score is a FICO score.  What matters though as you know is what your real hard copy paper report says.  If you score that from all 3B and each one shows that account as clean, you're golden in my book.