Credit Cards, Rating, Repair Dispute with bank caused mortgage co to ding credit

[Grant]

Jurisdiction

Minnesota

I have a few houses with a mortgage company called Sierra. Sierra failed to inform me that they changed the name of the company that would be drafting my mortgages. When I didn't recognize the company taking money out of my account for the last 6 months I reported fraud at my bank.

My bank got back the last 3 months from this mystery company on January 27th 2020. February 7th, I got an alert that my credit had dropped 120 points, because of Sierra. They said I was 90 days behind. Sierra and I put two and two together and figured out everything. I paid everything immediately.

I even have mortgage statements saying that I am current!!!

What actions can I take to get my credit back up fast?
Can Sierra reverse the credit bureau?
Is there legal action?

 

[army judge]

What actions can I take to get my credit back up fast?

Once your FICO has taken a hit or two, there is no speedy way YOU can raise it.

You are free to file a dispute with the three credit bureaus, which allows YOU to explain your side of the issue.

I take little solace in that, however, as I liken it to an arrested felon explaining his side of the murder to the police.

Nevertheless, you are are free to file such an explanation with the three major credit bullies, oops, bureaus.

Can Sierra reverse the credit bureau?

If you can convince the entity that complained about you to reverse it's actions, that can remediate your damaged score somewhat quickly.

Is there legal action?

There is always legal action.
Will a lawsuit help you in your quest to repair the damage? Probably not, but convincing the mysterious creditor to correct the record often solves the debtor's problem.

 

[zddoodah]

Sierra failed to inform me that they changed the name of the company that would be drafting my mortgages.

When you say "draft my mortgages," what exactly do you mean? Normally, to "draft" a mortgage means to write/create it, but I have a feeling that's not what you're talking about.

When I didn't recognize the company taking money out of my account for the last 6 months I reported fraud at my bank.

It took you six months to notice this? And you didn't notice that these monthly charges were exactly the amount of your mortgage payments? And you didn't also notice that "Sierra" wasn't taking money out at the same time?

What actions can I take to get my credit back up fast?
Can Sierra reverse the credit bureau?

These seem like questions best directed to "Sierra" and to the credit reporting agencies since they do not implicate any legal issues.

Is there legal action?

If you're asking if you have any basis to sue anyone, the answer is not apparently based on your post.

 

[Grant]

When you say "draft my mortgages," what exactly do you mean? Normally, to "draft" a mortgage means to write/create it, but I have a feeling that's not what you're talking about.



It took you six months to notice this? And you didn't notice that these monthly charges were exactly the amount of your mortgage payments? And you didn't also notice that "Sierra" wasn't taking money out at the same time?

I call it an ACH payment, they call it drafting. And I didn't notice because they were not the same amounts taken out on the same day each month. Its like they combined a house or two in one auto draft and then took and took the others individually...

 

[adjusterjack]

I call it an ACH payment, they call it drafting. And I didn't notice because they were not the same amounts taken out on the same day each month. Its like they combined a house or two in one auto draft and then took and took the others individually...

Which illustrates how incredibly dangerous and foolish it is to have anybody automatically dipping into your bank account.

 

[flyingron]

It's your job to make sure the payments are made. It's not the lender or their assignees or successors job to tell you that the drafts might appear different.

 

[Grant]

It's your job to make sure the payments are made. It's not the lender or their assignees or successors job to tell you that the drafts might appear different.

I guess you didn't read the part where I mentioned I DID make the payments and have mortgage statements saying so and also bank statements showing my payments being made on time. A lender IS obligated to warn you of a change of a payment processor.

Also, it IS my responsiblity to report suspicious withdrawals to my bank.

 

[Zigner]

Also, it IS my responsiblity to report suspicious withdrawals to my bank.

Sure, but you improperly reported an item which caused your mortgage to be unpaid.

 

[flyingron]

I guess you didn't read the part where I mentioned I DID make the payments and have mortgage statements saying so and also bank statements showing my payments being made on time.

I did read everything you wrote. Don't get snooty. Your comments were unclear as to whether the payments were made timely. All it says is you got current later.

A lender IS obligated to warn you of a change of a payment processor.

They are required to tell you if the SERVICER has chagned. But I didn't say otherwise. If youi READ what I wrote, I told you they weren't obliged to tell you if the the name of the drafter changed. This can happen even if the servicer did not change.

Also, it IS my responsiblity to report suspicious withdrawals to my bank.

So, what? Just because things look suspicious doesn't exonerate you from having to make the payments.

As you were told. Even if the reporter fell on their sword and pleaded their mistake with the credit agencies, it's not going to make an instant change to your credit score. while you have RIGHTS with regard to the information in the credit REPORT, the score is a completely different matter.