Product: Credit reporting or other personal consumer reports

Dear Consumer Financial Protection Bureau, I am filing a formal complaint against XXXX XXXX  regarding their misleading autopay policy and unfair credit reporting practices, which have caused significant harm to my credit score.

Issue Summary : I purchased a XXXX XXXX XXXX in XX/XX/XXXX. When purchasing the vehicle, I took out a loan with XXXX XXXX  to finance {$29000.00} for the vehicle. 

I set up automatic transfer payments ( auto-billing ) on XX/XX/XXXX for the monthly payment of {$490.00}. Following that, I paid my monthly charge on time every month for the duration of the loan up until XX/XX/XXXX. 

On XX/XX/XXXX, I received an alert from XXXX XXXX XXXX that my credit score had been reduced from XXXX to XXXX. The credit reduction was due to a default in payment to XXXX XXXX  for my auto loan. I was confused by this since I was set up on autopay. 

I immediately called XXXX XXXX  and paid off the balance of {$500.00}. Given that the entirety of my loan was paid on autopay, I asked why the final payment had not been processed via autopay. A XXXX Representative told me they have a policy that final payments can not be done via autopay, they have to be done by calling them directly or mailing a check. Prior to this conversation, the lender had never notified me that my final payment would not be processed via autopay and required manual payment. 

I asked them if this policy was written anywhere for customers to be aware. They told me it was written on the original loan contract. As you will see from my original loan contract, attached, there is no mention of this policy. 

I escalated the problem to a manager, who was unavailable, and was told I would be called back. A few days later, I called them back to ask about the policy. I was able to connect to a manager. The manager told me that their process was to send a letter to customers, prior to the final payment date, to inform them that the final payment could not be executed via automatic transfer ( autopay ). 

I never received this letter. 

As a result of this policy, I unknowingly missed the final payment, and XXXX Bank reported me in default without prior notice. 

This has caused my credit score to drop from XXXX to XXXX ( attached ), severely impacting my financial standing. 

Why This is Unfair and Misleading : XXXXXXXX XXXX XXXX autopay policy was unclear and deceptive, leading to an unintended default. 

I was not given a reasonable opportunity to rectify the issue before being reported to the credit bureaus. 

This negative reporting is disproportionate to the situation, as I was not attempting to avoid payment at all, I was simply unaware of their policy. 

Requested Resolution : I request that XXXX XXXX : 1. Remove the negative report from my credit file and update it to reflect paid on time status.

2. Clarify their autopay policies to prevent other consumers from experiencing these same issues. 
XXXX. Reimburse any financial damages caused by the drop in my credit score.

I believe this situation warrants regulatory review, as unclear payment policies should not lead to unwarranted credit damage for responsible borrowers. 

I appreciate your attention to this matter. Please let me know if you require any further documentation. 

Attachments : XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX