Consumer complaint received 2022-02-15
Company: Experian Information Solutions Inc.
State: FL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Investigation took more than 30 days

Complaint:
XXXX XXXX  : XXXX " Myth : A forbearance plan will negatively impact my credit score. 
Fact : Your mortgage servicing company should report your loan as current to credit reporting companies if you were current on your monthly mortgage payments before receiving a forbearance or other payment accommodation related to COVID-19 as long as you have made any forbearance plan or other COVID-19-related accommodation payments ( or no payments ) as required by your plan. Make sure to monitor your credit reports to find and resolve any inaccurate information. 

Myth : If I enter a forbearance plan, I will be ineligible to refinance or get a new mortgage loan. 
Fact : You may be eligible for a refinance or a new mortgage loan if you are in forbearance but have continued to make timely payments. You may also be eligible for a refinance or a new mortgage loan if you were previously in forbearance but have resolved any missed payments through a reinstatement or have made three timely payments either in accordance with a repayment plan or following a payment deferral, or completed the trial period plan payments in connection with a modification. Contact your mortgage lender to discuss your options as other eligibility requirements may apply. '' The fannie mae website lists 2 myths a ) that mortgage forbearance will hurt one 's credit score and b ) I will be ineligible to refinance or get a new mortgage loan. 

After being in the hospital with covid during the pandemic and facing hardships, I carefully read the rules about forbearance since I was reluctant to enter an agreement for fears of negative impact on my credit score or risking the possibility to be able to refinance in the future. I trusted the fannie mae website ( XXXX XXXX has the same governmental rules ) and was assured I had to worry not about either of the 2 concerns. 

Upon exiting my forbearance term ... My lender XXXX made an agreement with me to make XXXX trial payments. 

The consumer finance website states : If your lender does make an agreement or accommodation with you : " If your account is current and you make an agreement to make a partial payment, skip a payment, or other accommodation, then the creditor is to report to credit reporting companies that you are current on your loan or account. '' I have contacted the office of my local congresswomen XXXX XXXX XXXX who assured me that when congress passed the CARES act. It was intended to protect Americans and their credit scores. It would be plain right opposite logic to think that the CARES intended to only protect Americans who miss their payments ... but Americans who agree to the terms of their new loan modification and actually pay on time should be hurt. I agreed on the phone to a XXXX  rep back in XXXX. I subseuqently made all agreed upon payments. 

XXXX nevertheless in violation of the US law has refused to remove from my report the 120 day late stain. 

This negative information makes it impossible for to refinance and get a new loan since lenders will not approve people for loans who have XXXX late payments on their reports. This also has negatively affected my credit score. 

XXXX doesn't want consumers to refinance their loans because they don't want to lose customers. 

They therefore break the law and report paying customers late who were promised on US government websites that forbearance would not affect their credit score or make them ineligible to refinance by staining their credit scores. 

.My congresswoman will be taking action against XXXX  as well as my family attorney. 

I demand immediately that XXXX  remove from my credit report the XXXX late stain which refers to when I was legally protected by the CARES Act. 

It is not fair that I can not apply and get approved for a refinance or new credit cards because of these negative implications.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation