Consumer complaint received 2019-03-22
Company: CARRINGTON MORTGAGE SERVICES, LLC
State: TX
Product: Mortgage
Sub-product: Conventional home mortgage
Issue: Trouble during payment process

Complaint:
Dear CFPB : On XX/XX/2019 I submitted my XX/XX/2019 mortgage payment through the Carrington Mortgage Services ( Carrington or Firm ) website. Carrington Mortgage credited the account and later reversed the payment due to a data entry error. At this point, the Firm could have made commercially reasonable attempts to contact me by phone, mail or email to notify me of the error. If the Firm had down so, this would have allowed me to become aware of the error and resubmit the payment with enough time prior to the end of the month. As a result, Carrington has reported my account with the credit bureau agencies as 30 days past due and my credit worthiness score has decreased materially and has impacted my ability to secure financing at reasonable rates. 
Carrington did not notify me of the error and on XX/XX/2019, when I was going to submit my XXXX payment that was the first instance when I became aware that there was an issue with the XXXX payment. At that point, I resubmitted the XXXX payment on XX/XX/2019 and on XX/XX/2019 submitted my XX/XX/2019 Payment to ensure my account remained current. 
I find out later when preparing to start the process to apply for a home equity line of credit that my credit score had decreased significantly to the point where I would no longer be able to be approved for the HELOC. I contacted Carrington Mortgage Services customer service as well as Carrington Mortgage Services Customer Advocacy on XX/XX/2019 and both representatives were unwilling to help me correct and update the credit reporting information. They both simpthazied with me but stated that their system limitations would not allow for the credit bureau related adjustment to be submitted. 
In closing, my intention was to make my mortgage payment timely as reflected by the XX/XX/2019 payment. Carrington acknowledged that my account was credited for the XXXX Payment and later reversed that payment due to the error. The purpose of credit bureau reporting should not be to punish consumers who made a good faith effort to make their payment timely and the Mortgage Servicer should not be allowed to damage consumer credit ratings because of their computer system limitations or general unwillingness to protect the consumer.

The Carrington Mortgage Services customer service representative and Customer Advocacy representative stated they sympathize with this situation but could not help because of how their computer systems were built. If a customer made a good faith effort to make their payment on time with enough time for Carrington to make contact with their customer to help them correct the error timely, then the consumer should not be penalized and damaged as a result. 
Many customers are probably going through this same or similar scenarios where a payment was submitted in good faith with commercially reasonable amount of time for the Firm to have the payment error corrected prior to month end and avoid negative credit reporting implications. 

Sincerely Yours, XXXX XXXX

Company response to consumer: Closed with explanation