Who knew accounting could be so dramatic?
December 7, 2011 11:05 AM Subscribe
I am so very aware of the robust good health of my credit score, thanks to having refinanced our mortgage in October. But last month, I was declined for a credit card. Turns out my former mortgage servicing company has wrongly reported late payments to the credit bureaus, and disputing this efficiently is slightly complicated, because my former mortgage servicing company is insane.
posted by desuetude to Work & Money (6 answers total) 2 users marked this as a favorite
The first issue is our July payment, which was received on time but applied to the mortgage at a later date. So, it "looks" late on a very superficial scan of the account history, perhaps, but I have it in writing that our July payment was not received late, and that we have never been +30 on the account. (There was a long, boring, complicated accounting kerfuffle, but in brief, we paid what we were told by them to pay, and then I subsequently found out that their statements were incorrect and that we had to make up a BIG difference, which we did, but they had to untangle the accounting.) This letter affirming our account status is from September.
When I got the credit card denial letter, I obtained my report with the credit bureau named in the notice, and found out that the mortgage servicing company had apparently changed the status of the July payment with the credit bureaus in mid-October. I initiated an online dispute (oh gods I wish I'd done this by mail) and in the process, found out that the October payment had also JUST been reported that day as +30.
Um, fascinating. The refi closed at the end of October. The October payment was included in the payoff amount. The mortgage servicing company sent me written confirmation in early November that my account was paid in full. They returned surplus funds. And THEN reported my October payment as late. I disputed that item as well.
Now, how do I fix it with the rest of the credit bureaus? I apparently can't submit a dispute unless I obtain a report first, which I can't get for free unless THAT bureau is named in a denial of credit letter? Is that right? Because that seems asinine. (I already used my free annual report for the year, I checked them before before beginning the refi process so that I could correct errors if needed.)
Why don't I just insist that the mortgage servicing company correct it? Oh, because they can't see any account information for me, because my mortgage was paid off. [facepalm]