FCRA Discretion?

[The Dude]

Jurisdiction

Massachusetts

I'm having a issue with Freedom Mortgage. There online payment system had glitch and a payment did not go through, and I was not notified until well after it was 30 days late, resulting in a derogatory mark on my credit report. So far I have gotten nowhere with customer service and the company refuses to acknowledge any error on their part.

I tried asking for the "goodwill" removal and was told that due to the FCRA this could not be done as the data they report must be accurate. What I'm curious about is the FCRA and the discretion a creditor may have. They are required to report "accurate data" but can they report nothing for a particular month? in other words can they use discretion and not report a single negative payment?

Anybody have any experience with this?

 

[zddoodah]

Yes.

 

[Zigner]

I'm having a issue with Freedom Mortgage. There online payment system had glitch and a payment did not go through, and I was not notified until well after it was 30 days late, resulting in a derogatory mark on my credit report. So far I have gotten nowhere with customer service and the company refuses to acknowledge any error on their part.

I tried asking for the "goodwill" removal and was told that due to the FCRA this could not be done as the data they report must be accurate. What I'm curious about is the FCRA and the discretion a creditor may have. They are required to report "accurate data" but can they report nothing for a particular month? in other words can they use discretion and not report a single negative payment?

Anybody have any experience with this?

The "fine print" that you agreed to (likely with a quick click and no further consideration) almost definitely disclaims any liability on their part for technical problems. It is incumbent on you to ensure that the payment is made on time. They are under no obligation to remove a late-pay reporting to the credit reporting agencies.

 

[adjusterjack]

can they report nothing for a particular month? in other words can they use discretion and not report a single negative payment?

No. The lender does not have that discretion. The lender has contracts with the credit bureaus that require the lender to do this, that, and the other thing. If the lender doesn't comply with the contractual requirements, the lender can lose the contract and lose the ability to run credit reports on loan applicants. That would drive the lender out of business. So, no, the lender is not going to accommodate you.

 

[PayrollHRGuy]

They are required to report "accurate data" but can they report nothing for a particular month?

Reporting nothing would not be "accurate data" if there was something.

ETA: And I'd bet that with a company like this the process of reporting is automated to the point that no human sees it on either end.