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?