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Sueing over a alsely reported 30 day late on a mortgage.


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I bought a house a few years back. It is a FHA loan and I have never made a late payment. About two years ago I noticed a second mortgage account on my credit report through all three bureaus. The second account had identical detail in relation to amount, date opened, bank and type of mortgage but a different account number. It only showed open for three months and at the very end of the three month history, it showed a thirty day late. This tanked my credit score. It dropped my fico around 70 points. Luckily I had copies of the checks I used to pay the mortgage for the dates in question. I contacted the bank I used to write the checks to cover the mortgage, and had them three way call the bank I had the mortgage through and share information while I was on the phone regarding the payment. I was promised a letter indicating they had made a mistake and the immediate notification of the credit bureaus that that account was a duplicate and that they should immediately delete it. That never happened. I wated around three months and the item was still on my credit and I never received a letter. I contacted the mortgage bank again and ended up faxing copies of my checks. I was assured that changes would be made. Again, nothing. I contacted them again and they stated that my account was showing "never late" and I needed to fax credit reports showing they were the agency responsible for reporting the account. I sent them copies of the report showing a duplicate account showing the requested information and never heard from them. I talked to my local office and they reviewed my case and told me there was nothing they could do and that I needed to contact the credit bureaus. I filed three separate disputes with each of the credit bureaus and all three times the duplicate account with the 30 day late came back "verified, meets FCRA requirements". Finally I threatened legal action over the phone and got someone's attention. I faxed the information to the lady and two weeks later with every day persistence on my part the account began falling off my credit reports. During the two and a half years this was going on I attempted to refinance several times and was issued denial of credit letters from three different banks, (including the one causing the problem) because my credit score was not high enough to qualify for a refinance. That cost me about $400 a month. That's not including the other things I couldn't do because of my tanked credit score. After that item was removed my FICO equivilant increased 60 points and I now qualify for a refinance. I know this was a blatant violation of the FCRA and I am taking the bank to small claims court. I might also take the credit bureaus as well because the disputes I submitted we're obviously not investigated reasonably as the FCRA indicates they should be. What specific FCRA violations should I sue the bank and the reporting agency's for, and what should I expect to gain. Any similar case history?

I'm new to this and I appreciate the help. I live in Nevada.

-Scott

Edited by Idlehands775
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If a JDB lawyer and my dog are drowning in my swimming pool and I have to make a choice, I'm buying dog food tomorrow.

If a JDB lawyer and a stray dog are drowning in my swimming pool and I have to make a choice, I'm buying dog food tomorrow.

There, fixed it for you.

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The bank is claiming they fixed the problem and that it's the fault of the credit reporting agencies. The CRAs claim the entry on your CRs was verified. Someone's lying. You have to find out who's not doing their job.

Considering you'd be dealing with the bank AND the CRAs, I'd speak to an attorney.

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You would not believe the difficulty I have had in finding a lawyer to take this case. I have paperwork for everything right down to copies of the check I used to make payments for the months in question. Seems like an easy payday for some lucky lawyer who is willing to spend some time on this, but most the lawyers around my part of the country that deal with credit and mortgages are up the ears with forclosures and modifications. I'm going to small claims court because I am trying to expedite things and limit my legal fees. As far as who was lying... Since we are talking about a huge national bank and three national credit reporting agencies, I'm going to guess that all of them are lying. I have never been to small claims court. In fact, the only time I have ever been to court is for a speeding ticket. The situation seems obvious and simple to me, but I am smart enough to know that it is more difficult then it seems. Has anyone even heard of a case like this before?

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You are thinking way low on this you are looking at a 6 figure case. The things you outline show a blatant attempt to overcharge for a mortgage and could recieve national attention.

No balls to go to federal court on this and make other people jump on the bandwagon.

The Opposite of Bill Handle here, sounds like you have a case.

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You have every right to sue them. There is a firm that will take this case on in Philadelphia, PA, just google it. They are simply incredible and produce results. I am not sure if I am able to post their credit attorney firm here. They often put money back in your pocket in most cases. I hope this helps...

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You really think six figures? This may sound naive but I would be happy with being compensated for the money I would have saved had they not nuked my credit score. FICO's drop between 110-40 points from a single thirty day late. That seems a little excessive to me, but I guess that is beyond the point being as I never made a late payment. I really don't know anything about legal processes, so I guess an attorney would be the best call.

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I think you are correct in contining your search for an attorney on this one. First it will never stay in small claims court one of the three CRA's will move it to Federal Jurisdiction, espiecially if you continue Pro Se.

Best of Luck in your search....

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