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mosinnagant

Dealing with late payment - CRAs won't remove after dispute letter

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I have been working on cleaning up my credit over the last few months. I have been successful in removing some collection accounts and some late payments on a credit card simply by sending dispute letters. The only negative thing left is a 30 day late payment from 6 months ago on my car loan.  I sent dispute letters to the CRAs and it has been over 30 days. Experian and Equifax both replied by simply sending me a copy of my credit report which still shows the late payment with no explaination as to why my dispute was rejected or even a statement that it was rejected. TransUnion sent me nothing. I have copies of the dispute letters and certified mail return receipts showing the letters were sent over 30 days ago. All 3 of my reports show "dispute resolved, consumer disagrees" as a comment on my car payment. I also disputed with Wells Fargo directly at the address they gave me for their dispute department and received no reply. What is my next step? Can I sue TransUnion for ignoring my dispute?

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1 hour ago, mosinnagant said:

The only negative thing left is a 30 day late payment from 6 months ago on my car loan.

Were you actually late on the car payment?  If so, then what is the basis for your dispute?

1 hour ago, mosinnagant said:

Can I sue TransUnion for ignoring my dispute?

Anyone can sue the big question is would you win and the answer is NO.  Getting a late payment removed has NOTHING to do with disputing.  What has a small chance of working is a good will letter to the lender but now that you have disputed that is impossible.  If the late is accurate they are not required to do anything special in regards to your dispute.  The information is accurate and will stay.

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The information is not accurate. I made the payment before the 30 day mark and they didn't process it until almost a week later. I wrote them a letter that was basically a combination of a goodwill and dispute letter. I explained the situation and stated that I disputed the late payment. I sent the letter certified mail to the address wells fargo customer service gave me and did not get a response. So I disputed it with the CRAs. I am aware that they are required to investigate and send me the results of the investigation after 30 days. They failed to do so. The late payment is an error but at this point it is not relevant whether it is legitimate or not. What is relevant is that the CRAs are in violation of credit reporting laws for not sending me results of their investigation (if there even was one). I am asking people familiar with this situation what my next step is considering my goal is simply to have my credit report corrected. I'm not looking to make money off this but if the pressure of a lawsuit forces them to do the right thing I am willing to explore that option.

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12 minutes ago, mosinnagant said:

I am aware that they are required to investigate and send me the results of the investigation after 30 days.

Not exactly.  "Investigate" is a subjective term in this case.  What consumers think investigate means and what they actually have to do are often very different.  From the CFPB website:

?Credit reporting companies must investigate the items in question — usually within 30 days — unless they consider your dispute frivolous. They also must forward all the relevant data you provide about the inaccuracy to the organization that provided the information. After the information provider receives notice of a dispute from the credit reporting company, it must investigate, review the relevant information, and report the results back to the credit reporting company."

All this means is that when you dispute they send an E-Oscar electronic inquiry to Wells Fargo that you disputed with the electronic code as to why you disputed.  Then WF sent an electronic response back stating the late payment was valid.  That is it.  They are not required to do a formal CSI level investigation.  My guess is that the bureaus feel your dispute was frivolous and that is why they did not respond which would not be in violation of the law.

16 minutes ago, mosinnagant said:

I made the payment before the 30 day mark and they didn't process it until almost a week later.

How was the payment made?  If it was by mail you may have no recourse.  Even with on line payments if they fall on weekends, holidays or after a certain time of day then it may not be processed in a time frame for the payment to be considered on time.

18 minutes ago, mosinnagant said:

I am asking people familiar with this situation what my next step is considering my goal is simply to have my credit report corrected.

Your issue is with Wells Fargo not the bureaus.  They only report what WF tells them.  Once WF validated the late payment the bureaus are out of the problem.  You are going to have to address this with WF. 

19 minutes ago, mosinnagant said:

I'm not looking to make money off this but if the pressure of a lawsuit forces them to do the right thing I am willing to explore that option.

Try filing a complaint with the CFPB.  Creditors take this very seriously.  When I had an issue with Citibank not handling a disputed credit card charge timely I finally went to the CFPB and was stunned at how quickly their Executive Office called and wrote me CMRR to resolve the issue in my favor.  If WF really did make an error then they should move quickly to correct it when faced with explaining it to the CFPB.

 

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The CRAs are required to send me the results of their investigation within 5 business days of their decision. Equifax and Experian simply sent me a copy of my credit report stating that any changes were reflected on the report and nothing was changed on the reports they sent me. No explaination of their findings was given. If they considered it frivolous they would have (or should have) stated that. TransUnion sent me nothing. The law is pretty clear that they have to notify me of the results of their investigation and they failed to do so.

As far as my car payment goes it was made on a Wednesday on their website which clearly stated any payment made by 7 pm would be processed the same day and any payment made after 7 pm would be processed the next business day. I have went over this with Wells Fargo on the phone repeatedly and they always give me the address of their dispute department. Any mail I send there is ignored. I sent letters certified mail to their Po Box and they won't even sign for them. Dealing with Wells Fargo is like dealing with a black hole. You get nowhere. My only option is dealing with the CRAs or failing that looking at what legal options (if any) I have.

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Technically you are correct.  TU did not follow the FCRA by failing to respond in 30 days.  However, if you sue them, they will suddenly find the letter that was sent to you and even dated within your 30 day period.  Whether they actually sent that letter or not will be irrelevant, as the court will accept their evidence showing they sent it to you.  That will be your issue with evidence on that case.

If this were me, I would look to see if my WF contract has an arbitration agreement.  If so, I would file an arbitration case for the FCRA violation and potential state consumer law violations.  After they get the arbitration bill and contact you, they may be willing to work out a removal of the late payment plus refund of any costs you incurred (a max $250 filing fee plus any CMRRR postage costs) to settle.

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6 hours ago, mosinnagant said:

The CRAs are required to send me the results of their investigation within 5 business days of their decision.

The key word is SEND.  They are not required to ensure you RECEIVE it.  As @fisthardcheesesaid they will simply produce a copy of the letter dated within the 30 day time period (though if you read what I posted from the CFPB they are not required to respond in 30 days it is USUALLY 30 days) and that is the end of any case.

6 hours ago, mosinnagant said:

No explaination of their findings was given.

They are not required to explain it in detail.  Again, your idea of investigation is not in line with what theirs is or the law.

6 hours ago, mosinnagant said:

TransUnion sent me nothing. The law is pretty clear that they have to notify me of the results of their investigation and they failed to do so.

No, you RECEIVED nothing it doesn't mean they didn't send it.  The burden of proof is on you that they didn't do it.

6 hours ago, mosinnagant said:

My only option is dealing with the CRAs or failing that looking at what legal options (if any) I have.

As I said before the CRAs are out of this.  They merely regurgitate the information the furnisher gives them.  Your issue is with Wells Fargo.  If you are stuck in the black hole you can start with the CFPB or try arbitration if that is even an option in your loan agreement.   You would need to read your loan documents to see if it is an option.

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Let me ask you guys a question.  Hypothetically if I were to send TransUnion a letter saying I was going to sue them or if I actually filed a lawsuit from their point of view would it be easier to simply correct my credit report to settle with me or would it be easier for them to hire an out of state attorney to go to court and argue they sent me a document that they in fact never sent? Logic tells me it would be in their best interest to settle with me and pay no money rather than paying an attorney to go to court then take the chance (however slim it may be) that I will win and cost them more money. They have nothing to gain by beating me in court and in fact would lose money on attorney fees. It is in their best interest to settle with me. I think I will send them a friendly letter telling them they have 15 days to correct the error or legal action will be taken. I think I even saw a form letter on this site that would work for this purpose with a little tweaking. 

 

As far as the other CRAs go you said they aren't required to give me a detailed explanation which may be true. However they have to give me a brief explanation of their findings or at least tell me what their findings were which they failed to do. I think I will send them a letter similar to what I send TransUnion letting them know they sent me nothing notifying me of the results of their investigation.  I think it would be a bad business practice to spend money on an attorney to pursue a case where you have nothing to gain but run the risk of losing money versus settling for no cost. That's just my opinion. I could be wrong. I guess we will find out.

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@mosinnagant

I wish we could anticipate Tranunion's response to your letter, but we can't.

While It's possible  CRAs have responded favorably to letters such as yours, there's also court rulings to show that they have resisted and fought back.

 A CRA is only required to accurately report the information provided by a furnisher.   In other words, I don't know of any court ruling that requires a CRA to require detailed information (such as monthly statements) from a furnisher in order to determine if the furnisher is reporting accurate information

Your argument appears to be with the furnisher.   If you can show that your payment was made before the 30 day mark and that the agreement made that requirement,  you would have an argument against the furnisher.

 

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6 hours ago, mosinnagant said:

Hypothetically if I were to send TransUnion a letter saying I was going to sue them or if I actually filed a lawsuit from their point of view would it be easier to simply correct my credit report to settle with me or would it be easier for them to hire an out of state attorney to go to court and argue they sent me a document that they in fact never sent?

Realistically they are not going to settle with you by "correcting your report."  They cannot change what Wells Fargo is telling them to report.  If WF said you were not late and TU was reporting it THEN you would have an issue with TU.  Your issue is with WF NOT TU.  They do not have to prove that you received their letter regarding the investigation.  They only have to produce a copy of it and any bare thread case you had vanishes.

6 hours ago, mosinnagant said:

Logic tells me it would be in their best interest to settle with me and pay no money rather than paying an attorney to go to court then take the chance (however slim it may be) that I will win and cost them more money. They have nothing to gain by beating me in court and in fact would lose money on attorney fees.

Your logic is flawed.  TU keeps attorneys on retainer.  It costs them NOTHING to fight you.  This cost is part of their business model.  You are assuming it would even get to the point where they had to hire a local law firm.  My educated guess is that they would simply file a motion to dismiss or for summary judgment which would be granted since TU isn't the problem.  Worse:  you could end up being ordered to pay their fees for filing a frivolous case which means it costs them ZERO to fight you.

6 hours ago, mosinnagant said:

 I think it would be a bad business practice to spend money on an attorney to pursue a case where you have nothing to gain but run the risk of losing money versus settling for no cost.

It would be bad business practice to settle with you and change your credit report based on your word going against a MAJOR creditor who pays them to belong and report.  If they settled with you and changed your report which legally they are not supposed to do then what is to stop every consumer from filing a frivolous dispute to clean up their credit?

AGAIN:  your problem is with Wells Fargo NOT TransUnion.  File a complaint with the CFPB and see if WF will stop stone walling you.

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