Legal Question in Credit and Debt Law in Alabama
Past due reported on Credit Report while in dispute
I recently made a mortgage payment via online banking, and later received a past due notice about it.� I provided the bank a copy of the online check that was sent from my bank to verify the payment was made.� I specifically asked if there would be any negative reporting on my credit, and was assured there wouldnt be.� A week later I was called by the bank and told the payment was found and the problem was corrected.� Today, I received a call from the banks collection dept saying I was past due on the same account for the same payment in question and that it had been reported to the credit bureaus as such.� Being this is a mortgage payment, it will have a huge impact on my report and potentially default rates on other debts like credit cards.� I am also refinancing another mortgage that this will most certainly affect.� By the way, the bank in question was going through a merger when this happened, and they are now denying responsibility saying they never actually ''found'' where the check entered their system.� I am very close to contacting an attorney, I have all the proof and the email chain from the branch saying the problem was resolved, as well as the banker willing to testify to this.� Is there a lender liablity claim here?
2 Answers from Attorneys
Re: Past due reported on Credit Report while in dispute
Any incorrect information on your credit report can be disputed directly to the Credit Reporting Agency that is reporting the information. This falls under the Fair Credit Reporting Act (FCRA). However, if you dispute and they do not remove the negative information, you do not have a claim until you have an adverse action against you based on your credit that is now incorrectly reporting (Such as denial of credit or increase in interest rate based on the negative information) So, after you dispute, and after they dont correct it and after you get denied, thats when you need to contact a lawyer about filing suit because you now have damages.
Re: Past due reported on Credit Report while in dispute
The liability will be if this gets put on your credit report as being late. You need to check on your credit reports - http://www.alabamaconsumerlawblog.com/2007/03/first_critical_step_to_correct.html.
If it is then we can help you dispute it to give the bank and the credit reporting agencies a chance to fix it.
If they don't, then you can sue them. http://www.alabamaconsumerlawblog.com/2008/06/fourth_critical_step_to_correc.html
Please feel free to contact us - http://www.alabamaconsumer.com/CM/Custom/Contact.asp
John Watts
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