Page 1 of 2 1 2 LastLast
Results 1 to 10 of 12
  1. #1
    Join Date
    Oct 2019
    Posts
    4

    Default Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    My question involves collection proceedings in the State of: Oregon

    I live in Oregon and had an automobile that I leased from American Honda Finance (AHF) in Washington State. I negotiated no fees, no down payment and no first months payment when I got the car. I made 36 payments to American Honda Finance and paid the last payment in May of 2019.

    In June, 2019, my credit report was updated to list the lease as paid off. Then in September, I looked at my credit report and now AHF is listing the car as 90 days late. When I finally get in touch with AHF, they say that it is for late fees and other fees but nothing to do with the payments. All the payments were made to AHF with maybe two payments made 30 days late.

    I've filed a small claims case (yet to be served on AHF) for violating the FCRA and Oregon's Fair Debt Collection Statute 646.639(2)(n). I'm reading the FCRA, but it doesn't specify (that I can find in the PDF) what specifically can be reported to the credit reporting agency.

    I've never had a late fee reported to the credit reporting agency. Let me be clear, I'm not disputing the two 30 day late payments, I'm disputing the reporting of a fee imposed for being late.

    Can they report these fees (the only thing outstanding) to the credit reporting agency as a late payment? Reporting it 90 days late after they reported the account closed?

  2. #2
    Join Date
    Mar 2013
    Posts
    17,219

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    I don't recall seeing any distinction in the FCRA between late fees in the underlying debt. If you don't see any then there is no violation of the FCRA for reporting the debt as delinquent if the late fees haven't been paid.

    As for Oregon statute 646.639(2)(n)

    (2) A debt collector engages in an unlawful collection practice if the debt collector, while collecting or attempting to collect a debt, does any of the following:
    (n) Collects or attempts to collect interest or other charges or fees that exceed the actual debt unless the agreement, contract or instrument that creates the debt expressly authorizes, or a law expressly allows, the interest or other charges or fees.
    https://law.justia.com/codes/oregon/...ction-646.639/

    Note the section in bold. Read your leasing contract. I'm guessing it expressly authorizes the "interest or other charges or fees" specifically late fees.

    You wrote that the late fees are still outstanding and therefore reporting the delinquency because of unpaid late fees is proper.

    Instead of suing (which I think you will lose) you should have just paid the late fees as soon as you found out about them on your credit report. Upgrading your credit report to something like "was late now paid" is better than leaving it the way it is.

  3. #3
    Join Date
    Oct 2019
    Posts
    4

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    Thank you adjusterjack,

    I have not paid the fees because I dispute owing them. The late fee was incidental to the overall amount due and as I dispute owing it and they say I owe it, I'm left with no other option but to go to court.

    As far as the contract, I'm attempting to get a copy of it, it was not provided to me.

  4. #4
    Join Date
    Mar 2013
    Posts
    17,219

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    Quote Quoting pcgumshoe
    View Post

    As far as the contract, I'm attempting to get a copy of it, it was not provided to me.
    Not provided to you? That's on you. You had it in your hand when you signed it. Lesson from the school of hard knocks. Never sign anything without getting a copy even if you have to sit there and take pictures of it with your camera phone.

  5. #5
    Join Date
    Oct 2016
    Posts
    3,305

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    I assume you have received a detailed list of the charges. How about you list them and maybe we can help.

    I say this because the one you did list, the late fees, you admit you owe.

  6. #6
    Join Date
    Oct 2019
    Posts
    4

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    Hello Payrolguy,

    The fees are for one late payment, damage and turn in. During the initial negotiation, I negotiated for no deposit, no initial payment, double the damage waiver and no turn in fee. They acknowledge the double damage waiver and the amount of damage to the vehicle on turn in was less than this amount.

    My point here is, the FRCA is for credit, not fees. They listed this on my credit as paid off, then a couple months later cap on these fees and report THEM, NOT THE ORIGINAL CREDIT PAYMENTS TO THE CRA.

  7. #7
    Join Date
    Mar 2013
    Posts
    17,219

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    Quote Quoting pcgumshoe
    View Post

    My point here is, the FRCA is for credit, not fees. They listed this on my credit as paid off, then a couple months later cap on these fees and report THEM, NOT THE ORIGINAL CREDIT PAYMENTS TO THE CRA.
    You'll get to argue that in court and see how it goes.

    I have no further comments.

  8. #8
    Join Date
    Oct 2014
    Posts
    7,429

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    Quote Quoting pcgumshoe
    View Post
    Can they report these fees (the only thing outstanding) to the credit reporting agency as a late payment? Reporting it 90 days late after they reported the account closed?
    As long as what the creditor reports to the CRA is accurate there will be no FCRA violation. Any amount that you owe — whether principal, interest, or fees — that is not paid timely may be reported as delinquent on the credit report. If the fees are owed and still not paid, then it appears the credit report is accurate and I see no basis for a good FCRA claim. If you dispute that the fees are owed, then you need to go through the dispute process in the FCRA before filing a lawsuit alleging a FCRA violation.

  9. #9
    Join Date
    Jan 2010
    Location
    New Jersey
    Posts
    3,632

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    OP, it would be in your best interest to settle the debt now by paying what they say you owe, because next month the fiance company is going to report to the credit bureaus that you are 120 days late, and then a month after that, 150 days late, and then a month after that, ACCOUNT CLOSED NO PAYMENT, causing your credit to crash... And then of course, suing you and judgments on your credit report. When the finance company is done with you, you won't be able to finance a pack of bubble gum...

    Pay what you own now, sue them in court for your money back later. I'm not saying you will win in court, as a matter of fact, I think you're wasting your time. Good Luck
    I'm not a lawyer, but I did stay at a Holiday Inn Express last night.......

  10. #10
    Join Date
    Oct 2016
    Posts
    3,305

    Default Re: Late "Fees" Not Late Payments, Showing Up on Credit Report, Paid Off All Payments

    Quote Quoting pcgumshoe
    View Post
    Hello Payrolguy,

    The fees are for one late payment, damage and turn in. During the initial negotiation, I negotiated for no deposit, no initial payment, double the damage waiver and no turn in fee. They acknowledge the double damage waiver and the amount of damage to the vehicle on turn in was less than this amount.

    My point here is, the FRCA is for credit, not fees. They listed this on my credit as paid off, then a couple months later cap on these fees and report THEM, NOT THE ORIGINAL CREDIT PAYMENTS TO THE CRA.
    The fees were part of the credit agreement and are just as reportable as the payments themselves.

    Since you didn't list the detailed fees there isn't much I can do to further help you.

    1. Sponsored Links
       

Page 1 of 2 1 2 LastLast

Similar Threads

  1. Rent and Utilities: Payments, Late Fees, Dead Ends
    By Mr.Lockheart in forum Landlord-Tenant Law
    Replies: 1
    Last Post: 08-09-2010, 12:53 PM
  2. Payment Disputes: Can an Independent Contractor Charge Late Fees for Late Invoice Payments
    By mroz16 in forum Independent Contractors
    Replies: 6
    Last Post: 09-22-2008, 09:46 PM
  3. Credit Reports: Low Credit Score Due To Late Mortgage Payments
    By Sniper1 in forum Personal Finance And Investment Law
    Replies: 6
    Last Post: 10-16-2007, 10:35 AM
  4. Mortgages: Charged Legal Fees After Late Mortgage Payments
    By 32tigers in forum Buying, Selling and Conveying Real Estate
    Replies: 1
    Last Post: 08-15-2007, 06:12 PM
 
 
Sponsored Links

Legal Help, Information and Resources