My first mortgage is with Waterfield Mortgage Co. I pay my mortgages and most of my bills through my online banking account with CitiBank. In September I received a notification from Waterfield that my mortgage payment was overdue, yet my Citibank account indicated that the payment had been made and the check cleared on 9/15. I first contacted Waterfield and told them that Citibank had made the payment. Then, I contacted CitiBank and requested that a copy of the front and back side of the check be FAXED to Waterfield per their request. CitiBank did not attend to my request promptly because the Customer Service person (in India) did not follow through. A week later, I contacted Waterfield and they still had not heard from CitiBank. I again called Citibank and finally they delivered the cancelled check to Waterfield, as well as myself. Waterfield admits that the check was erroneously credited to a different account. However, they claim that the FAX copy of the check they received from CitiBank was not very clear and suggested that perhaps the mistake was due to an illegible account number printed on the CitiBank payment check. They offered to reverse the late payment fee of $93.58. When I questioned the rep about the effect of the bogus late payment on my credit, she stated that a 30 day late payment notification was reported to the credit bureau. When I inquired how they were going to rectify that, she said they would report a correction to the credit bureau. At this point, I am not trusting them at all. First of all, CitiBank also FAXED me a copy of the cancelled check and it is obvious that the correct account number is printed very clearly on the copy of the check I received. The back side of the check clearly demonstrates that Waterfield applied the payment to a different account number that was off by one digit. While I understand that mistakes can occur, I'm not very forgiving when a financial institution makes careless mistakes that have a negative impact on my credit. Furthermore, they hesitated to take full responsibility for their mistake and minimized my concerns. By the way, does this correction delete the negative information from the credit report, or does it merely provide an explanation? Other than wait for them to issue a correction, is there anything I can do to penalize them for their actions and for causing me all this unnecessary grief and aggravation? What, if any, proactive action should I take to ensure that my credit report does not reflect this 30 day late payment?