Consumer complaint received 2022-07-21
Company: Fay Servicing, LLC
State: FL
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
Received a response from FAY Servicing in reference to CFPB Complaint number XXXX on XX/XX/XXXX that was inaccurate. 

PLEASE NOTE THAT THERE ARE MANY SECTIONS TO THE CARES ACT STATING VARIOUS AREAS THAT ARE PROTECTED INCLUDING AMENDMENT TO FAIR CREDIT REPORTING ACT AND MORTGAGE FOREBANCE WHICH ARE TOTALLY SEPARATE UNDER THE CARES ACT. 

FAY Servicing stated be advised the loan is a convention loan ; therefore, it is not protected by the CARES Act as it is not federally-backend. 
This is inaccurate due to FAY Servicing referencing the conventional loan is not protected because they are citing the ; CARES Act Mortgage Forbearance which is different from Cares Act Amendment to the Fair Credit Report Act Section 4021 of the CARES Act modifies 15 U.S.C. 1681s-2 ( a ) ( 1 ) of the FCRA by adding subsection ( F ). Section 1681s-2 ( a ) ( 1 ) ( F ) BUT EVEN UNDER THE CARES ACT MORTGAGE FORBEARANCE IT CLEARLY STATES ; Who is eligible for forbearance? 
You may have a right to a COVID hardship forbearance if : you experience financial hardship directly or indirectly due to the coronavirus pandemic, and you have a federally backed mortgage, which includes HUD/FHA , VA, USDA, XXXX XXXX XXXX and XXXX XXXX XXXX XXXX 
**For mortgages that are not federally backed, servicers may offer similar forbearance options. ** ** If you are struggling to make your mortgage payments, servicers are generally required to discuss payment relief options with you, whether or not your loan is federally backed** On my credit report the months, XX/XX/XXXX thru XX/XX/XXXX must reported as Current in accordance to ; Section 4021 of the CARES Act modifies 15 U.S.C. 1681s-2 ( a ) ( 1 ) of the FCRA by adding subsection ( F ). Section 1681s-2 ( a ) ( 1 ) ( F ) provides : ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or IS NOT REQUIRED TO MAKE XXXX OR MORE PAYMENTS PURSUANT TO THE ACCOMADTION, THE FURNISHER SHALL ( I ) REPORT THE CREDIT OBLIGATION OR ACCOUNT AS CURRENT FAY Servicing admits that I contacted them on XX/XX/XXXX ( Note : CARES Act Amendment went into effect on XX/XX/XXXX but dated impacted accounts for consumers dating back to XX/XX/XXXX ) and I informed them that I was experiencing financial hardship due to being impacted by XXXX. 

So Here Is A Breakdown Of The Timeline ; XX/XX/XXXX All consumer accounts ( credit cards, loans, mortgages, etc ) CARES Act, which President Trump signed into law on XX/XX/XXXX, Act amended the Fair Credit Reporting Act ( FCRA ) TO STOP ADVERSE CREDIT REPORTING DURING COVID-19 CRISIS. The amendment defines " covered period '' as the period starting XX/XX/XXXX, until the later of 120 days after enactment of the CARES Act or 120 days ( extended by President Biden on XX/XX/XXXX ) or after the end of the national state of emergency declaration WHICH IS STILL ACTIVE TODAY. ( See Attached Exhibit A ) XX/XX/XXXX Date I initially informed FAY Servicing that I was experiencing financial hardship with paying my mortgage due to being impacted by XXXX  XX/XX/XXXX Sent letter stating that my mortgage account would be deferred by 1 month. Which means based on the Amendment to the FCRA, FAY Servicing has now agreed to make an ACCOMADATION which is defined as follows under the Amendments to the Fair Credit Reporting Act. ( Accommodation. The term accommodation includes an agreement to defer XXXX or more payments, make a partial payment, forbear any delinquent amounts, modify a loan or contract, or any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 ( COVID-19 ) pandemic during the covered period. ) XX/XX/XXXX Payment due date due to XXXX payment receiving a XXXX time deferment. 
This Month has be reported as current In Accordance with the following ; b. Section 4021 of the CARES Act modifies 15 U.S.C. 1681s-2 ( a ) ( 1 ) of the FCRA by adding subsection ( F ). Section 1681s-2 ( a ) ( 1 ) ( F ) provides : ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or IS NOT REQUIRED TO MAKE 1 OR MORE PAYMENTS PURSUANT TO THE ACCOMADTION, THE FURNISHER SHALL ( I ) REPORT THE CREDIT OBLIGATION OR ACCOUNT AS CURRENT. ( Agreement cover 5 months ) XX/XX/XXXX I submitted a temporary assistance request online notifying FAY Servicing that I was still experiencing financial hardship due to XXXX. 

XX/XX/XXXX I phoned FAY Servicing to inquire about an additional deferment. 

XX/XX/XXXX letter was dated and sent to me by FAY Servicing and in response to my request for further loss mitigation assistance due to COVID-19 hardship, FAY Servicing sent me an approval for and accepted, a Deferment based on an evaluation of an incomplete loss mitigation application. 

XX/XX/XXXX FAY Servicing provided me a Verbal Approval for a ( 5 ) month repayment plan on XX/XX/XXXX. This repayment plan begin on XX/XX/XXXX through XX/XX/XXXX. 
a. During this time FAY Servicing stated they reported to the credit reporting agencies that my account was under a partial payment agreement during this period. 
THIS IS INACCURATE REPORTING DUE TO ; b. Section 4021 of the CARES Act modifies 15 U.S.C. 1681s-2 ( a ) ( 1 ) of the FCRA by adding subsection ( F ). Section 1681s-2 ( a ) ( 1 ) ( F ) provides : ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or IS NOT REQUIRED TO MAKE 1 OR MORE PAYMENTS PURSUANT TO THE ACCOMADTION, THE FURNISHER SHALL ( I ) REPORT THE CREDIT OBLIGATION OR ACCOUNT AS CURRENT. ( Agreement cover 5 months ) FAY Servicing that FAY Servicing is in fact in violation of the following ; A. CARES Act Amendment to the FCRA Section 4021 of the CARES Act modifies 15 U.S.C. 1681s-2 ( a ) ( 1 ) of the FCRA by adding subsection ( F ). Section 1681s-2 ( a ) ( 1 ) ( F ) provides : ( F ) Reporting information during COVID-19 pandemic. 
( i ) Definitions. In this subsection : o ( I ) Accommodation. The term accommodation includes an agreement to defer XXXX or more payments, make a partial payment, forbear any delinquent amounts, modify a loan or contract, or any other assistance or relief granted to a consumer who is affected by the coronavirus disease 2019 ( COVID-19 ) pandemic during the covered period. 
o ( II ) Covered period. The term covered period means the period beginning on XX/XX/XXXX and ending on the later of o ( aa ) 120 days after the date of enactment of this subparagraph [ enacted XX/XX/XXXX ] ; or o ( bb ) 120 days after the date on which the national emergency concerning the novel coronavirus disease ( COVID-19 ) outbreak declared by the President on XX/XX/XXXX under the National Emergencies Act ( 50 U.S.C. 1601 et seq. ) terminates. 
( ii ) Reporting. Except as provided in clause ( iii ), if a furnisher makes an accommodation with respect to 1 or more payments on a credit obligation or account of a consumer, and the consumer makes the payments or is not required to make 1 or more payments pursuant to the accommodation, the furnisher shall o ( I ) report the credit obligation or account as current ; or o ( II ) if the credit obligation or account was delinquent before the accommodation o ( aa ) maintain the delinquent status during the period in which the accommodation is in effect ; and o ( bb ) if the consumer brings the credit obligation or account current during the period described in item ( aa ), report the credit obligation or account as current.

Company response to consumer: Closed with explanation