Accidently missed 1 payment...Company notified credit bureaus

Accidently missed 1 payment...Company notified credit bureaus

Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes

Recently I missed 1 payment on my mortgage and realized it when the nxt payment was due....I made both payments and got the account back in good standing, but the company reported to the credit bureaus 30 days late.  I would love to hear thoughts & if there might be a way to fight it.

So here is the background:

I am Active Duty US military & stationed overseas.  I usually make my payments online.  I had some military training & then some vacation time lined up so I set up my nxt payment (or so I thought).  I returned from my training & vacation and didn't notice payment hadn't gone through until the next payment was due.  I immediately logged online and made the payment & then called the company to explain to them.  They were so kind to "remove" the late fee for the late payment and helped me make the late payment and the current payment.  At no time did they mention that they were going to report the late payment to the credit bureaus.  A few weeks later I noticed they reported and I called them....they told me that there was nothing they could do because they did not receive June's payment until after July 1st.  They said it wasn't their fault the payment was late.  

I can understand where they are coming from, but I have a history of on-time payments, I am military overseas, I called them about the issue once I discovered it, & they never said anything to me about reporting the late payment.  Does anyone know if there is anything I can do to fight this or remove it from my credit report?  I thought maybe the SCRA would apply but haven't seen anything.  It is very frustrating because I had the money in my account to make the payment the entire time but didnt know that my scheduled online payment was never completely "scheduled" and never paid.

Thanks for listening to me rant & please don't let this happen to you!

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Investor · PA · Member since 2013 · 1k+ posts · 602 votes
11y

I have about 8 mortgages and something like 20 credit cards along with other accounts (insurance, utility, auto loan, cell phone, cable, netflix, amazon, etc).  The only way I've been able to keep up with it all is by setting it all up as automatic payments.

I only currently have 1 credit card that is not paid automatically and my taxes are not paid automatically (I walk into the tax office 2x a year or pay online).

My suggestion would be to put your bill payments on auto pilot.  Even with all these accounts I have, I've never been late because every account is pretty much on auto pilot.

The only thing I haven't been able to automate yet is rent collection of cash.  Right now many of my tenants would need to mail money orders but I am looking into deposit-only ATM cards that will accept cash.

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  • Investor · PA · Member since 2013 · 1k+ posts · 602 votes
    11y

    I have about 8 mortgages and something like 20 credit cards along with other accounts (insurance, utility, auto loan, cell phone, cable, netflix, amazon, etc).  The only way I've been able to keep up with it all is by setting it all up as automatic payments.

    I only currently have 1 credit card that is not paid automatically and my taxes are not paid automatically (I walk into the tax office 2x a year or pay online).

    My suggestion would be to put your bill payments on auto pilot.  Even with all these accounts I have, I've never been late because every account is pretty much on auto pilot.

    The only thing I haven't been able to automate yet is rent collection of cash.  Right now many of my tenants would need to mail money orders but I am looking into deposit-only ATM cards that will accept cash.

  • Folsom, CA · Member since 2015 · 94 posts · 19 votes
    11y

    I agree with Jassem about automatic payments. I would also be very wary about doing business with this company in the future. As far as the mark on your credit report goes, I've heard it's actually a good thing to have a tiny blemish on your record. It shows lenders that you can deal with setbacks. Could just be an old rumor, but I really doubt a 1 month late payment is going to have any large effects on the grand scheme of things. I'm like you though, I'd want that off my record ASAP. Have you tried calling a credit bureau and explaining the situation to them? I know there are also lawyers that specialize in this stuff, but I don't think it's worth it for this situation.

  • Linda WeygantPro Member
    Investor and CPA · Arvada, CO · Member since 2015 · 2k+ posts · 3k+ votes
    11y

    I had always thought that the only thing you could fight on your credit report were actual incorrect issues, not a correct issue but with a good excuse...

  • Rental Property Investor · East Wenatchee, WA · Member since 2014 · 10k+ posts · 16k+ votes
    11y

    @Bryan C. Thank you for your service!

    Unfortunately, there's nothing to dispute.  Inaccurate  or mis-reported information is a different story.  One 30 day late won't cripple you forever.  The large mortgage co's probably auto-report every month, good or bad.   I had that happen to me once and know how you feel.  I moved and didn't receive the statement on a new heloc.  The bite of the hit will fade pretty quickly.

  • Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
    11y

    The company did nothing wrong or under handed, they simply reported the facts.  There's nothing to fight, a fact is a fact.  They are required to make these reports as part of their contracts with the reporting agencies.

  • Investor · Bangkok, Thailand · Member since 2014 · 52 posts · 22 votes
    11y

    I'll add to this:  I'm in a similar situation.  I'm overseas and almost missed a payment...the first one due on a property I just closed on.  I realized I hadn't allowed enough time for the payment to make it's way from  Thailand to the US.  I had to use some crazy google-foo to find a number to call and pay 5 days late.  Turns out my mortgage had been sold and the payment would go somewhere else via mail once it made it to the original mortgage company.  Had I not called and paid by phone I would have certainly missed a payment by the time my check made the trip.  

    Lesson learned.  Find those coupons in the closing packet and make that first payment asap after closing...no matter how long until it's due.  (for me the first payment wasn't due until 42 days after close.)  It's easy to let it slip your mind and impossible to set up auto payments until it's been sold...often multiple times.  

  • Investor · Spokane, WA · Member since 2014 · 733 posts · 155 votes
    11y

    Thanks everyone.  I know that the facts are facts & there wasn't anything incorrect they reported.  Its just one of those things that you hate to happen when you arent the type of person who lets bills slide etc.  FYI you can request formally with the company to remove it....I did and they denied it (for obvious reasons...cant let one guy slide or everyone will try it).  Only other option that I know of is to do a formal request with the credit agencies.

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