How to proceed?

[david_weaver]

A while back, I waged quite a battle with US Bank over how my account history was being reported. This progressed all the way to the executive office. In the end, they basically told me NO. Despite my providing documentation to prove they were reporting incorrectly. By then, I had been approved for a mortgage on the new house I was purchasing, and I was weary from the fight. I should not have let it go, but I moved on.

 

Fast forward 16 months, and I am again relocating and shopping for mortgages. One of the things the loan office had questions about, of course, was the US Bank mortgage. Annoyed that I would even still have to answer for these late payments, I disputed with credit bureaus. I thought maybe since more time had passed, and the mortgage was paid off, the results might be different. Boy, were they. The disputed late payments from 2011 were changed from being between 30-60-90 days late to 120-150-180 days late.

 

After battling them for over a year the first time, I am through playing nice with them.

 

So where do I turn?

 

Do I contact CFPB? Do I notify them of FCRA violations and demand correction AND compensation? Do I get an attorney?

 

Thanks!

[shifter]

were you late?

[david_weaver]

That depends who you ask.

 

To be more specific, yes, the mortgage was late in October and November 2011. Well, October 2011 was late. October 2011 and November 2011 were paid mid-November, so November was late but not late enough for a late fee nor to be reported that way to the credit bureau, except for what happened next. US Bank returned that check un-cashed, as it included both payments and the October was 45 days past due at that point, so they wanted both payments in certified funds. Not a problem, except by the time they returned the payment, and a replacement payment in certified funds was made, it was after December 1st and they filed to foreclose.

 

I am still amazed when I see people on here who have not paid a mortgage in two years and still no word from the bank on foreclosure. Once they received the certified funds (and more likely, once they realized we were around $10K underwater and they would take a bath trying to sell it if they foreclosed), they offered us a forbearance agreement. Make the next 12 payments in certified funds, before the first of each month, and they would not foreclose. Oh yeah, and pay just over $2,000 in legal fees. So we did as we agreed.

 

Way back then, we were not as adept at micromanaging our credit on a daily basis, (and we knew the 30 and 60 day late payments from October and November 2011 were going to kill our scores anyway) so we did not even give it a thought other than we were doing the right thing.

 

At the end of the forbearance agreement, I ran the credit reports. In addition to the 30 and 60 day late payments from October and November 2011, the 12 months we were in forbearance showed on our reports as 30 late, 60 late, 90 late, current, 30 late, 60 late, 90 late, current, 30 late, 60 late, 90 late, 120 late, then finally current.

 

When I questioned this with US Bank, I was told that when people are under a forbearance agreement, the payments go to a different address (an attorney's office) and are deposited in a different account. US Bank only 'sweeps' that account quarterly. Thus, despite our paying well before the first of the month each time, payments sat there while the account went deeper and deeper into delinquency. When they would sweep, obviously, it would get to current before the process started again. At the end, they informed us we were short just around $200. How that could be when THEY gave us the payment amounts is beyond me? By the time that was resolved and paid, the last 90 had obviously become a 120.

 

So throughout 2012 and into the Spring of 2013, I wrote letters and called them. Sometimes I was told there was nothing they could do. Sometimes they agreed to fix it. As I know now from CreditBoards, most of the people I spoke to had no real understanding of the issue, no idea how to fix it, and probably lacked the authority to fix it even if they understood and wished to help. Finally, I sent a letter to the executive office. They were so nice and so understanding. And after making me wait nearly 30 days while they investigated, they said they felt they applied payments in a manner they were permitted to, and they would continue to report they way it currently showed.

 

With the house being sold anyway (thus ending our relationship with US Bank and paying them off in full), and already being pre-approved for a new mortgage, I took their answer as the final defeat and decided not to fight any longer.

 

After being in the new house for only a year, we are again relocating for work reasons. No issue with getting pre-approved for a new mortgage, but as noted, the loan officer wanted a detailed explanation of all those mortgage late payments. We explained, they were satisfied, all good.

 

It irked me though to have to explain, and to be looked at like a constant delinquent, when basically we missed ONE payment 3 years ago and basically had our credit scores sledgehammered. So I decided to challenge with the credit bureaus. I foolishly thought that maybe since the loan was paid and closed they would react differently. Really, I should have tried the executive office again, pleading for kindness instead of disputing the accuracy.

 

The results came back, and US Bank updated alright. As noted in the original post, the 30-60-90 pattern was replaced with 120-150-180.

 

So a serious lesson learned about unintended consequences.

 

But now, what to do? I stand by my argument that they were reporting inaccurately. Would that hold up in a fight? Probably not. But now it is exponentially worse than it was, and there is no question the reporting is inaccurate. I have emails and letters from the first battle explaining what payments were applied and when, and how that resulted in the 30-60-90 reporting. How can they now report something completely different than what they themselves insisted was the true history?

 

And sorry, this has to be the longest answer to a 3-word question ever.

[LKH]

You made the payments as told to on time. Yes they are reporting wrong. CFPB.

[shifter]

When I questioned this with US Bank, I was told that when people are under a forbearance agreement, the payments go to a different address (an attorney's office) and are deposited in a different account. US Bank only 'sweeps' that account quarterly. Thus, despite our paying well before the first of the month each time, payments sat there while the account went deeper and deeper into delinquency. When they would sweep, obviously, it would get to current before the process started again.

well, that's totally bogus.

 

definitely CFPB.

[nysbadmk8]

As mentioned before CFPB. If that doesn't get the wheels turning I would invest in an attorney and seek damages.

[david_weaver]

Filed my complaint with CFPB last night. That hardest part was getting the story down to the allowed 3900 characters, as this fight began nearly 4 years ago. And as I have great difficulty being brief even on my best day.

 

Email said I should expect 'update' within 15 days.

 

Is there a typical time-frame from complaint to resolution?

[nysbadmk8]

Filed my complaint with CFPB last night. That hardest part was getting the story down to the allowed 3900 characters, as this fight began nearly 4 years ago. And as I have great difficulty being brief even on my best day.

 

Email said I should expect 'update' within 15 days.

 

Is there a typical time-frame from complaint to resolution?

Within 30-45 days

[david_weaver]

Received a letter yesterday from the US Bank Escalation Department that they are investigating my complaint and will have a resolution out to me in the mail by October 31st.

 

When I last fought this battle (June 2013) I had received a similar letter from the Escalation Department promising a similar resolution by June 25th. Nearly a month late, and after I made call after call, I received a letter dated July 16th stating they had completed their investigation and updated my account history. No real answers in the letter, and in the end, no significant changes to my credit file.

 

Hopefully this time, as it has turned into a CFPB complaint, they will actually stick to the timeline they promised and I will have an update this time next week.

[david_weaver]

OK, received notification through CFPB that US Bank had responded.

 

I do not think they bothered to read any of the dozens of documents I attached.

 

The basic summary of their response was "Go F*ck Yourself" although they were more diplomatic. They claim they thoroughly investigated this matter previously in June 2013, and as they notified me then, they are certain they are reporting the payment history accurately.

 

Basically, as a courtesy (likely because I complained through CFPB) they reviewed the payment history again and stand by their original determination.

 

The issue is:

 

In June 2013 when they determined they were 100% correct in their reporting, they were showing 6 late payments, with the worst delinquency of 90 days in December 2011.

 

When I filed the CFPB complaint in October 2014 (and still now), they are showing 26 late payments, with the worst being 180 days late.

 

Their two letters, dated 15 months apart, both swear what is being reported is 100% accurate despite the vast differences.

 

So, NOW WHAT?

[Momof5]

naca atty and sue their marigolds.

[david_weaver]

Thanks, Momof5.

 

I may not have any other options at this point.

 

In addition to my hatred of US Bank growing every day, I have to say I am quite disappointed in the CFPB process. Other than acting as a middle-man to collect my complaint and related documents and pass them along to US Bank, they did nothing and applied no pressure to get this resolved.

 

And clearly, based on their complete lack of actual consideration of the facts of the case and a response just one peg up from a from letter, US Bank did not give a damn that the complaint came through the CFPB instead of via certified mail or any other method.

[david_weaver]

Today I received a letter which US Bank feels is the end of this.

 

They apologized for the 'inaccurate information' provided to me in their July 16, 2013 response. That 'inaccurate information' apparently was that they had thoroughly checked their records and what they were reporting to the CRAs matched their internal records. IT DID NOT.

 

They basically say that credit reporting was recently realigned to a different area of US Bank, and that when that happened, they realized certain accounts (like mine) were not reporting correctly so they updated the reporting.

 

They also say they are bound by federal law to report the history as their records reflect, and that they are prohibited from deleting the account from my files.

 

At this point, what are my options? Sue them? Threaten to sue them and see if they cave and remove? Take it back to the CFPB or to the BBB?

[mizliz1011]

sue them if you can get attorney's fees...

[david_weaver]

As a follow-up, do I have it correct that there is no 'legal obligation' for a creditor to report anything?

 

If they do report, it has to be accurate, cannot stay past 7 years if derogatory, basically the law says what they can and cannot do.

 

But if they wished to simply delete the trade-line, they could do so, correct?

[Momof5]

yes, you are correct. There is no requirement that they report. The only requirement is that WHEN they report, the data must be accurate.

 

yes, they can delete. They tell you they can't because most folks don't know the law. By telling consumers that they can't delete a TL, they are simply trying to make you go away.

[chugs102]

Today I received a letter which US Bank feels is the end of this.

 

They apologized for the 'inaccurate information' provided to me in their July 16, 2013 response. That 'inaccurate information' apparently was that they had thoroughly checked their records and what they were reporting to the CRAs matched their internal records. IT DID NOT.

 

They basically say that credit reporting was recently realigned to a different area of US Bank, and that when that happened, they realized certain accounts (like mine) were not reporting correctly so they updated the reporting.

 

They also say they are bound by federal law to report the history as their records reflect, and that they are prohibited from deleting the account from my files.

 

At this point, what are my options? Sue them? Threaten to sue them and see if they cave and remove? Take it back to the CFPB or to the BBB?

 

 

Collect your evidence and sue their marigolds.