Consumer complaint received 2017-12-03
Company: M&T BANK CORPORATION
State: NY
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:
About three years ago the XXXX, new york branch manager at M & T bank, XXXX XXXX, recommended that in order to help my daughter XXXX XXXX pay off her credit card debt that i create a secured account from which her debt would be paid. that way there would never be a risk to my own credit while helping my daughter. it was explained to me that this is a cash secured loan and the bank would take possession of the funds if my daughter failed to repay the loan as agreed. i thought this was a great idea. XXXX made monthly payments and after she got married she could no longer afford to do so. 

i immediately received a phone call from the bank stating that XXXX  was late on her payment and i reminded the bank that this was a cash loan i secured and they should not be concerned because my funds would cover the amount owed. after receiving a few more phone calls and after requesting that the bank confirm with my branch manager, XXXX, that this was not a loan from the bank but a secured loan from me, i demanded they cease calling me and simply confirm that what i was saying was true. unfortunately, they never did. 

i reached out to XXXX  via text over a year ago ( attached ). i even at that time in my texts asked her how much funds would be available to me if we paid the balance at that time ( see attached texts ). it must be remembered that at no time was the bank at risk because my funds were used to secure the loan to my daughter. it should also be realized that although the bank called me since XXXX at no time did they report a negative action on my credit. 

it was not until i contacted XXXX and used my secured funds to close the loan account that approximately 10 days later, even though there was no longer a loan, the bank chose to report me as being more than 90 days delinquent to the credit bureaus! even more ludicrous is the fact that they mailed my daughter that the debt was totally paid ( see enclosed ). 

when this happened i contacted XXXX who felt bad because we were friends and she knew that i had been in the branch multiple times to speak with her. therefore she contacted the credit division of the bank advising them that they were incorrect and asked that they repair this situation to which she sent me an email stating they refused. their stated reason for refusing to remove the negative reporting is that they contacted me several times via phone and mail. see attached. i NEVER received any communication via mail and the times i did speak with the bank over the phone i asked that they use the secured funds. 

the bank failed to used the secured funds as was their obligation. this is the only reason i set up a secured loan to begin with - to not have an issue with my credit in the event my daughter defaulted on the loan payments!!! 

at no time did XXXX state that they could not repair my credit because i defaulted because that would not be true and at no time was there ever risk to the bank because all funds were secured with my cash. at no time did the bank report me to the credit agencies over the past few months. it is only now, after i closed the secured account, that approximately 10 days later they reported me as more than 90 days delinquent. this has lowered my credit scores across the board and increased my bills including car loans .... for my family and children. 

i respectfully demand that they correct their error and correct their report showing no deficiency or delinquency to the credit unions where they negatively reported me. i request that any damages economically that this will cost me until this is resolved.

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