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Does 1-29 days really = 30 days?


Woodshed
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I've got one TL that's reporting 2x 30 days late on all 3 CRs, but the fact is that I paid them something like 3 weeks late both times. Is this normal, legal, reasonably easy to remove? Should I contact the OC or the CRA first? I'm currently in good standing with the creditor, and would like to keep the account open.

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1-29 days late = Past due. The account may be reported as such, but it's rare for this to actually happen, due to the confusion it causes. The rating would remain an R1 or I1 and there would be no dates posted for when this happened.

Legally, a Data Furnisher may not report a consumer as 30-59 days late (R2 or I2) unless they are actually 30-59 days late.

However, you may have sent your payment in when it was only 1-29 days AND the creditor didn't process the payment for a while, causing the payment to post after the 30-day mark. This is not unusual. You would go about trying to remove the derogatory marks by the same method: Goodwill letters to the creditor.

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I've got one TL that's reporting 2x 30 days late on all 3 CRs, but the fact is that I paid them something like 3 weeks late both times. Is this normal, legal, reasonably easy to remove? Should I contact the OC or the CRA first? I'm currently in good standing with the creditor, and would like to keep the account open.

When mailing payments, you must allow 7-10 calendar days for processing or posting. Did you MAIL your payment something like 3 weeks late? OR Did they simply POST your payment late? By now, you should know approx. how long it takes for your cc payments to be delivered after mailing and keep this in mind. It's possible to get anything removed. Since the account is Open I would contact the OC first.

Note: The experts say that by paying cc cards bill, just one day EARLIER that due date, can make a difference in your Credit Score for that reporting period. I had learned to MAIL my payments 12-14 days earlier directly from a Post Office, Office Building or Court House. Late Payments are costly and may affect Scores for up to 7 years, which is ridiculous.

Best Regards,

June

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I'm annoyed that what you write here isn't the case, because it should be. I don't believe the Metro 2 format even allows the creditor to indicate if the payment was early. there is date of last payment and indicators for 31-60, 61-90,91-120, 121-150, 150+, plus an assundary collection of pay statuses, but I find nothing that would allow for any indication of early payment.

Should FICO differentiate between people who have automatic PIF setup on the date of invoice versus people who pay by phone on day 29, get the confirmation number and pray it clears on time? Yea, it should. But like most things that make sense with the FICO system, they don't do this.

The system sucks, but it's what we have. No - FICO does not take into account early payment of bills. It doesn't have the data available to do that.

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The system sucks, but it's what we have. No - FICO does not take into account early payment of bills. It doesn't have the data available to do that.

The law generally requires credit card companies to POST a payment the day the issuer receives it. Where the information contained in Credit Reports are constantly Updated, an early Payment may lower the Balance, which certainly impacts FICO Scores. When receiving your Score, the CRAs may tell you that "your Score only represents the Score the Lender would receive, if they requested it TODAY".

Whether or not some Metro 2 Format provides for early payments, it stands to reason that early payments can only boost FICO Scores, if anything. I cannot immediately recall the website, but here is another expert opinion on Early Payments:

See, http://www.msnbc.msn.com/id/11655626/

Best Regards,

June

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Ya know, I think it interesting that we have folks posting here that are concerned about USPS mail time and OC posting time.....

Obviously, anyone on this board has a computer. Pay your bills online and they post either that day or within 2 days depending upon the creditor. With an online payment, the OC cannot have a CSR 'sit' on the payment a couple of days just to create a late fee. If you are closing in on a due date, or for some - that 30 day late point, pay it ONLINE!

BTW, years ago when I applied for my first mortgage, I noticed these lates on my Sears. I was shocked. The mortgage guy said they didn't pay attention to Sears because they will post a 30 day late when you are 1 day and a 60 day late when you are 31, etc. I called Sears and confirmed that. They told me that your payment is 'due' when you get your bill. If you pay late, then you were 30, etc. (Remember this was years ago.)

Anyway, I canceled my Sears card because of that. I have never shopped in a Sears since and have never gone for a Discover card because Sears owns it!

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Ya know, I think it interesting that we have folks posting here that are concerned about USPS mail time and OC posting time.....

I find it interesting that you are NOT concerned about USPS mail time and OC posting time and you are Posting here.

In this Credit Info Center Forum, Us folks are allowed to post whatever CONCERNS US or HAD CONCERNED US or others. FYI, I have absolutely NO problems with USPS mail or OC posting on my accounts. At all times, my mail gets picked up and delivered timely and my accounts are posted timely. BTW I know of individuals who had encountered problems while paying their bills online.

I find that many folks pay their bills as it is convenient for them. At this time, the USPS mail is very convenient for ME, although I may own a computer. Thank you. 8-)

Best Regards,

June

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June,

The only persons that I have seen that had problems with online bill pay was for certain banks and they paid the bill through the bank. The bank still must cut the check and send it to the OC. I actually go on my creditor's website and pay it there. I have never had a problem with it. I would also say that even if folks have had a "problem" with online bill pay, it is a far lower percentage than those who pay through USPS.

It has been documented by the FTC that some creditors literally will sit on an envelope and not post a payment until after the due date and this was done intentionally. Yes, laws were then passed to stop the practice.....but, prove that your payment did get there before the due date! Unless you sent it CMRRR, you can't. I remember, before my online pay days, that one CC would take 14 days before a payment would post. I KNOW the USPS didn't take that long to get my mail there. With online payments, there is no way there could be this kind of a delay. Period. You can prove when you made your payment down to the second. But, hey! If you want to accept the risk, that is your choice!

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Back to the original question, please, I paid late online and on purpose, having cash flow issues at the time and 'knowing' that past due was one thing but 30 days another... It would be a positive account except for this, so my ideal situation is that the lates are taken off but the account remains. Should I dispute with the the CRA first or go right to the goodwill letter / call to the creditor? It's Credit One Bank, if that matters.

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OK lets sort through this morass:

Creditors (especially credit card companies) are required to post payments to your account on the day they receive it. There are laws that say so.

The problem with paying using a creditor's on-line portal to do a direct withdrawl, is that the payment is not "received" until the transaction actually occurs. So you may have set up the transaction on day 29, but they may not have actually made the withdrawl until the next day. ACH transactions take only seconds to process, so check your bank statements for when it posted to your account. If it was on day 30, then they can report it as 30 days late.

If you mailed a payment then when they received payment is more complicated. Most states have defined by judicial process what is considered to be a "mail delay." Illinois has defined a mail delay as 4 days for purposes of legal proceeding. If you can prove the mailed date with a postal receipt or other instrument, then an Illinois court will consider the mail arrived 4 days after that date no matter what the recipient says. Other states may have longer or shorter "mail delay" definitions, so check your case law.

The FCRA is specific that any information listed on a consumer must be accurate. So if they received the payment on day 29, they cannot report you 30 days late...period. There is no wiggle room here.

I went through this argument with Countrywide Mortgage Services where they failed to post payoff funds on the day they got it by wire transfer. It took some effort, but eventually they realized that they can't report a 30 day late when they got the payment before 30 days had expired. They took off the late (but then screwed something else up...typical).

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