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Proper reporting of late payments under Metro2?


Menta33
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I'm trying to help a friend with an Auto Loan that was at Bank of America that is now paid off. BofA is reporting 30 days late Aug 2011, 30 days late Dec 2012, and 60 days late Jan 2013.

I am looking at the Metro 2 — 2012 Credit Reporting Resource Guide to understand how and when 30-day and 60-day lates are to be properly reported. In there I read:

The “clock” for a 30-day delinquency starts 30 days after the due date, as opposed to the billing date. (2-2, page 18 of pdf)


They then give an example of a payment due on January 15th and how it should report on the first of each month:

  • January 1st: 0-29 days late (code 11) - no payments past due
  • February 1st: 0-29 days late (code 11) - one payment past due
  • March 1st: 30-59 days late (code 71) - two payments past due
  • April 1st: 60-89 days late (code 78) - three payments past due

This BofA loan appears to have a due date of the 1st of each month and a 5% late payment charged on the 12th of each month (unless that is a holiday or weekend, then next business day).

The Metro 2 guide states later:

Field Definitions: Field 17B: (4-11, page 61 of pdf)

Payment Rating
When the Account Status (Field 17A) contains 05, 13, 65, 88, 89, 94 or 95, this field must also be reported. The Payment Rating must be blank filled for all other Account Status Codes.
The Payment Rating contains a code that properly identifies whether the account is current, past due, in collections or charged off within the activity period being reported. Values available:
0 = Current account (0–29 days past the due date)
1 = 30-59 days past the due date
2 = 60-89 days past the due date
3 = 90-119 days past the due date
4 = 120-149 days past the due date
5 = 150-179 days past the due date
6 = 180 or more days past the due date
G = Collection
L = Charge-off
For example, if the account was paid on September 22, 2011, but the consumer was 30 days past the due date on September 10, 2011 prior to paying the account, report Account Status Code = 13 and Payment Rating = 1.

 

Later I see this section on Date of First Delinquency:

Explanation and Examples of FCRA Compliance/Date of First Delinquency (Field 25) (5-31, page 130 of pdf)

Date of Account Information

(Field 24)

Due Date

(Not reported)

Payments Missed

Account Status & Definition

Field 17A

Date of First Delinquency

(Field 25)

01/11/2011

12/20/2010

None

11

Current

Zero fill

02/11/2011

01/20/2011

None

11

Current

Zero fill

03/11/2011

02/20/2011

January payment not made

71

30–59 days past the due date

02/19/2011

(First Delinquency)

04/11/2011

03/20/2011

Jan. & Feb. payments not made

78

60-89 days past the due date

02/19/2011

05/11/2011

04/20/2011

None – payments caught up

11

Current

Zero fill

06/11/2011

05/20/2011

April payment not made

71

30-59 days past the due date

05/20/2011

(First Delinquency)

07/11/2011

06/20/2011

April & May payments not made

78

60-89 days past the due date

05/20/2011

08/11/2011

07/20/2011

April, May, June payments not made

80

90-119 days past the due date

05/20/2011

09/11/2011

08/20/2011

April → July payments not made

97

Charge-off

05/20/2011


None of the CRAs show a Date of First Delinquency for this account, the field only appears on Equifax and is blank there, no mention of DOFD on any other CR for this tradeline.

After analyzing the report supplied of the complete payment history on the account, this is what I find:

  • The due date appears to have been the 1st of each month.
  • A late charge of 5% is charged on the 12th of each month if payment not received by close of business on that business day.
  • I don't know what day of month Chase reports to the credit bureaus, but I am assuming it is the first of each month, but perhaps it is last day of the month? How can I find this out?
  • Account was 30 days late on August 31, 2011
  • Account was 30 days late on October 1, 2011
  • Account was 30 days late on December 31, 2012
  • Account was 60 days late on January 30, 2012

Only if BofA reports on the very last day of each month would their reporting be accurate if the due date is actually the 1st of each month.

 

How can I know for certain what day of the month BofA reports to the credit bureaus? How can I find out for certain what day of the month payments were due and what their late payment charge policy is? Should I ask BofA to produce a signed contract for the loan? So far they've only provided a computer printout of the payment history.

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what day they report has nothing to do with the notation.

 

once you miss that second payment in a row,

 

it will show 30DL for that month.

 

According to my understanding of the Metro 2 guide it has everything to do with the notation.

 

How do you interpret it differently?

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For example, payment due on August 1st and not paid until September 7, it becomes 30 days late on August 31st, if the creditor reports a 30 day late payment for August, then they would have to be reporting on August 31st, otherwise, if they reported on September 1 through 6, it would be 30 days late in September.

 

It appears BofA is reporting on the last day of the month, as their balance reported almost matches the actual balance at the end of each month, it varies plus $2 or minus by $1, from the actual end of month balance.

 

Would a dispute of their reporting balance being too high by $2 in the month with a late payment be useful in trying to get the late removed?

Edited by Menta33
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