Consumer complaint received 2022-02-08
Company: EQUIFAX, INC.
State: MD
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:
THIS IS A NEW DISPUTE : COMPANY IS NOT FOLLOWING PROPER GUIDELINES OF THE CARES ACT. 

I am disputing all negative credit reporting for my mortgage be removed from my credit report regarding COVID related forbearance under the CARES, Fair Credit Reporting Act. The negative credit reporting is a violation of the Cares Act Fair Credit Reporting. I was in forbearance XXXX. During the last 30 days of my forbearance I worked with my Loss Mitigation specialist to exit forbearance under a modification " accommodation '' which included trial payments. XXXX advised that late payments had been reported to credit reporting agencies despite my long standing record of maintaining my account in good standing prior to the COVID National Emergency and since exiting forbearance. I am requesting that these negative reports to all credit agencies be removed under the following clarifications of the CARES ACT by the Consumer Financial Protection Bureau : 1. Mortgage # # XXXX was in good standing prior to the COVID National Emergency. Upon entering a Covid related forbearance, the loan forbearance, trial payment period which is a partial payment according to Shellpoint definition and Loan Modification qualify by definition under the CARES Act definition of " accommodation. '' The COVID National Emergency expired XX/XX/XXXX. The forbearance ended XX/XX/XXXX and Modification with trial payment plan was agreed upon XX/XX/XXXX and mailed XX/XX/XXXX. Since the XXXXovid National Emergency ended XX/XX/XXXX, mortgage accommodations are protected from credit reporting 120 days after XX/XX/XXXX which would be XX/XX/XXXX. 

The following statement is from the Consumer Financial Credit Bureau : An accommodation includes any payment assistance or relief granted to a consumer who is affected by the COVID-19 pandemic during the period from XX/XX/XXXX, until 120 days after the termination of the COVID-19 national emergency declared by the President on XX/XX/XXXX under the National Emergencies Act. Such an accommodation includes, for example, agreements to defer one or more payments, make a partial payment, forbear any delinquent amounts, or modify a loan or contract. An accommodation includes assistance or relief that is granted voluntarily or pursuant to a statutory or regulatory requirement. 

2. The account at the time of entering the forbearance accomodation was listed as current. A second and third accommodation were entered when both parties agreed to the Trial payment period and Loan Modification which was COVID related. Since the account was current prior to entering the accommodations listed above the status of the account should remain reported as current. Under the definition of " accommodation '' the account status was current at the time of forbearance. The modification and trial payment plan were offered and agreed upon on XX/XX/XXXX which is before the expiration of the forbearance which would mean that the furnisher must continue the reporting the account as current. This would mean the reporting of " current '' should have remained in effect until the final modification was complete. 


As noted in FAQ # 1, furnishers can grant accommodations voluntarily or pursuant to a statutory or regulatory requirement. The CARES Act provisions addressing how furnishers report accounts subject to an accommodation apply if : ( 1 ) a furnisher makes an accommodation with respect to one or more payments on a credit obligation or account of a consumer, and ( 2 ) the consumer makes the payments or is not required to make one or more payments pursuant to the accommodation. If the credit obligation or account was current before the accommodation, during the accommodation the furnisher must continue to report the credit obligation or account as current. 

3. The Trial Payment period has been completed with modification paperwork pending. The loan status should not have advanced past current ( see above ) and upon completion and delivery of the paperwork, should remain reported current.

If the credit obligation or account was delinquent before the accommodation, during the accommodation the furnisher can not advance the delinquent status. For example, if at the time of the accommodation the furnisher was reporting the consumer as 30 days past due, during the accommodation the furnisher may not report the account as 60 days past due. If during the accommodation the consumer brings the credit obligation or account current, the furnisher must report the credit obligation or account as current. This could occur, for example, if the accommodation itself brings the credit obligation or account current ( such as a loan modification that resolves amounts past due so the borrower is no longer considered delinquent ) or if the consumer makes past due payments that bring the credit obligation or account current. 

4. Most importantly. Forbearance, Trial Payment Period and Modification meet the definition of an " accommodation. '' The CARES act reporting protections are extended to cover the time period of the accommodation and after the accommodation ends. Therefore the remarks should have never been added to the report. As stated below, payments not required, partial payments and modifications can not be marked as delinquent.

The consumer reporting protections of the CARES Act continue to apply to the time period that was covered by the accommodation after the accommodation ends. Assuming payments were not required or the consumer met any payment requirements of the accommodation, a furnisher can not report a consumer that was reported as current pursuant to the CARES Act as delinquent based on the time period covered by the accommodation after the accommodation ends. A furnisher also can not advance the delinquency of a consumer that was maintained pursuant to the CARES Act based on the time period covered by the accommodation after the accommodation ends.

Company response to consumer: Closed with explanation