Is It True Banks Cannot Remove Late Payments Reported to Credit Agencies
My question involves an auto loan or repossession in the State of: IL
I had a car payment that I just found out was 39 days past due with Bank of America. I just found out the person handling my finances (including paying car loan) had starting using some of this money and didn't pay my loan. Upon finding this out today, I immediately made the late payment over the phone.
However, they will not remove the late payment on my credit. The BOA rep. said they cannot do so unless there was a bank error.....and that they can't remove my late payment as a courtesy because they are federally regulated and could get audited by the government on their credit reporting at anytime.
I don't buy this. You can't tell me federal policy mandates that banks can't remove late payment reports on one of their customer's accounts as a courtesy. I have had late payments removed as a courtesy at other times....although this was on credit cards, not on a loan.
Is this true or are they not being honest with me?
Re: Is It True Banks Cannot Remove Late Payments Reported to Credit Agencies
There is NO LAW requiring ANY creditors to report derogatory information on ANYBODY. So your creditors & credit reporting agencies do indeed have the ability to delete derogatory information. *They may choose not to, and that is well within their rights.* Do not buy the story that they are "legally obligated" to report you late though.
You might try talking to a supervisor or mgr. & see what they might do for you.
Re: Is It True Banks Cannot Remove Late Payments Reported to Credit Agencies
Here is a sample letter you can use, just fill it out to best suit your situation. It works in most cases;
Date
Regarding: Account No. XXXXX
COMPANY NAME
DEPARTMENT NAME
ADDRESS
CITY, STATE ZIP
To Whom It May Concern:
I am writing a letter about my experience with xxxxxx that is a mixture of a grateful "thank-you" and a pressing request concerning a xxxxxx Charge Card tradeline in my credit files that I would like to have revised.
I received the xxxxxx card in [YEAR], several years before I [CHAOTIC LIFE EVENT -- A MOVE, A BIRTH, MEDICAL SICKNESS, ETC.]. Later when I experienced the [CHAOTIC LIFE EVENT] and while working on [WORK PROJECT], I became disorganized with respect to, as you saw, making timely payments with xxxxxx. I fully recognize my responsibility with respect to payable accounts and have worked diligently to rehabilitate my relationship with xxxxxx since that time.
To be honest, that year was a "wake-up" call for me regarding fiscal organization. Since then I believe I have learned the essential organizational and financial management principles I desperately needed at that point. Thankfully, responsible credit management is now reflected in my credit records which -- excluding the xxxxxx card late entry -- are excellent. I wish to thank you for renewing your confidence in me and for giving me a second chance at a relationship with you, one that I am determined to keep spotless.
We are about to shop for a mortgage, and it has come to my attention that the late notations from xxxxxx may preclude me from taking full advantage of the very lowest interest rates now available. Since those notations do not reflect my current status with xxxxxx, I am requesting that you give me a second chance at a positive credit rating by revising those tradelines. Your customer service representative suggested that I write you for a "goodwill adjustment." I sincerely hope that there is redemption at xxxxxxx, and I beg you for such consideration. Please let me know if any additional documentation would assist in reaching a positive outcome, and I thank you again for the time you have spent reading this letter.
Very hopefully yours,
Name
Address
City, STATE ZIP
OR TRY THIS ONE IF YOU THINK IT BETTER SUITS YOU;
YOUR NAME
YOUR ADDRESS 1
YOUR ADDRESS 2
Month Day , 20XX
COMPANY NAME
DEPARTMENT NAME
ADDRESS
CITY, STATE ZIP
Dear Ms. NAME:
I have been an company name customer since 19XX and during that time, I have enjoyed my experience with company name greatly. I am writing to see if you would be willing to make a "goodwill" adjustment to your reporting to the three credit agencies. I have two a late payments on the above referenced account that date back to 19XX. Since that time I have been an exceptional customer paying every month on time.
Because of my exceptional payment history over the last X years, I would like you to consider removing the negative payments from my credit report. At the time of the late payments, I was in the process of changing jobs. I say that not to justify why the payments were late, but rather to show that the late payments are not a good indicator of my actual credit worthiness. I hope that company name is willing to work with me on erasing this mark from my credit reports.
I have been a very happy customer in the past and hope to continue a long relationship with company name. With today’s credit industry so competitive, I know how important it is to maintain good relationships with customers. Company name has been exceptional in my book so far and I highly recommend it to all my friends and relatives. I hope that you will deeply consider my request and prove once again, why company name is heads above the rest. I look forward to your reply.
Sincerely,
your name