Consumer complaint received 2021-10-13
Company: NAVY FEDERAL CREDIT UNION
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: Problem with personal statement of dispute

Complaint:
Last year approximately XX/XX/XXXX my husband and I were presented with a plan that would allow us to delay mortgage payments under the Security Cares Act. Immediately we asked if this would negatively impact our credit. Of course we were told no because our payments were current prior to the initiating this plan. We opted in for this reason. At the end of this deferrment period, we were given the option to place those payments at the end of the loan. This is the option we elected. 

On XX/XX/XXXX I pulled my credit reports after denial for business credit for a derogatory report on my credit report. Unfortunately I discover Navy Federal Credit Union has labeled our mortgage as current but under a loan modification plan. This is seen by creditors as a negative reporting. We had no idea they would label our account as loan modification. The letter received only said they would report it as current. Nothing else. 

After failed phone call attempts during XX/XX/XXXX to get XXXX XXXX to remove the derogatory comment, I sent the following letter via their messaging system. 

The following letter was sent on XX/XX/XXXX to Navy Federal Credit Union regarding Mortgage Loan Your Message XX/XX/XXXX : Navy Federal Credit Union XX/XX/XXXX To Whom It May Concern : I recently applied for business credit and was denied for this business credit due to a report of participation in a loan modification program. I requested a copy of my credit report and to my surprise my current Mortgage Loan with your establishment is labeled as Loan modified but not under a federal government plan. 
According to the Navy Federal Credit Union letter dated XX/XX/XXXX, For members whose loans were current before entering a Plan, during the Forbearance period, we will report the loan to the credit reporting agencies as Current. My Mortgage loan past and current history is also labeled as exceptional by your institution. Therefore, should not be labeled with any derogatory labels. 
On XX/XX/XXXX, I called and spoke with your Mortgage representative, XXXX, regarding removing this label from my mortgage account due to the negative impact it is having on establishing my small business. She advised me to contact the credit agencies. This is insufficient advice as the negative label on my mortgage is not placed on my account by the credit agencies. This negative label is placed by the Mortgage lender. This negative comment is damaging my character, my personal mode of living to provide income for my family and my reputation. I demand this derogatory label to be removed from my credit report with all credit agencies immediately. 
Your company is in clear violation of the law. This negative remark is clearly a violation of the FAIR Credit REPORTING ACT 15USC 1681a4 my right to privacy. 

Their response was as follows : Navy Federal Response XX/XX/XXXX : Good afternoon, XXXX XXXX. 
We have verified that your account is reporting accurately to all 3 bureaus. The modification is showing because that is what you have as your post forbearance workout plan. 
If you have any questions please reach out to mortgage collections at XXXX. 

We totally disagree with the reporting and I have sent another certified letter to Navy Federal Credit Union on XX/XX/XXXX requesting once again to remove the derogatory statement from my account with the credit agencies. Yet the negative statement remains on my account and is interfering with my ability to launch my small business to provide for my family.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation