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Lucy, Esq.
Lucy, Esq., Lawyer
Category: Consumer Protection Law
Satisfied Customers: 30168
Experience:  Lawyer
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I have a home equity line of credit with a local credit

Customer Question

I have a home equity line of credit with a local credit union with online statements. I do not get a bill emailed to me or mailed to me. I neglected to pay my bill for about 45 days (I had planned to sign up for auto pay and somehow in my mind this translated
to I had signed up for auto pay). I was contacted by phone and paid the bill online within 24 hours. 24 hours later the bank reported me to the credit bureau as being 30 days late. This is threatening to disqualify me for a loan I am in the process of getting.
Did the bank have any obligation to contact me more than 24 hours before reporting me as 30 days late? I have already written the bank a letter asking them to rescind the 30 day notice and they refused my request. Is there anything more I can do?
Submitted: 2 years ago.
Category: Consumer Protection Law
Expert:  Lucy, Esq. replied 2 years ago.
I'm Lucy, and I'd be happy to answer your questions today. I'm sorry to hear that this happened.
The Fair Credit Reporting Act requires creditors to give consumers notice before or soon after reporting negative information to credit bureaus. However, this is not a "notice to cure" - it's just to make the customer aware that the account is past due and that the creditor is informing the credit bureaus. As long as the account was at least 30 days past due when they reported it, I'm sorry to say, they're allowed to do so. There is no requirement that the information be removed, because it's correct. The account was past due. I understand that people make mistakes, but credit reports are just for reporting the facts.
You can try asking if the company that you're trying to get a loan from will accept proof that you made the payment before making a decision. Try to use your otherwise good credit history to sway them. Try talking to a superior - maybe there's something you can do to still get the loan to go through.
I apologize that this was probably not the Answer you were hoping to receive. However, it would be unfair to you and unprofessional of me were I to provide you with anything less than truthful and honest information. I hope you understand.
Good luck.
Customer: replied 2 years ago.
Thanks for your answer. 1.) The bank never informed me that I was reported to the credit bureau. I discovered that within 2 days because I got a credit alert. Can I use this in any way to my advantage?
2) The bank has told me that they are required by law to report me as 30 day late and cannot undo it. You seem to says that this is not true. Assuming you are correct, can I respond to them that they can indeed undo the 30 day late report and ask them again to reconsider?ThanksTom
Expert:  Lucy, Esq. replied 2 years ago.
1. A violation of the Fair Credit Report Act is punishable by a fine, but it doesn't require removal of the negative mark. You could sue for damages.
2. They could reverse it if the negative report were a mistake. I didn't mean to imply the negative mark could be removed as a courtesy - I meant that you could ask the loan officer to overlook the mark when deciding whether to give you a loan.