Consumer complaint received 2023-02-24
Company: NAVY FEDERAL CREDIT UNION
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 information incorrect

Complaint:
On XX/XX/2022 I made an additional payment of {$93.00} over the phone with a representative from Navy Federal Credit Union ( NFCU ) on my closed VISA credit card account ending in XXXX. This additional payment was required because the interest rate they were charging me went up a couple month earlier unbeknownst to me and as a result the automatic monthly minimum payment that was being withdrawn from my bank account no longer covered the new minimum monthly payment. So the amount due went up. They should have raised the amount that was being withdrawn so that this was not an issue. But regardless, I made this extra payment on XX/XX/2022 to meet the amount that was to be due on XX/XX/2022. That was four days before it was considered late by them but they didn't process it until after close of business on XX/XX/2022 and then reported my payment as LATE to the credit bureaus. I complained to NFCU and had several back & forth messages with them ( which have been deleted from their website message portal ). They refused to fix this incorrect reporting. The representative who originally took my payment over the phone did NOT mention it would take them over 4 days to apply the payment and that it would be considered, and reported as late. The whole reason he was taking the payment was to make sure it was received and applied prior to it being late. After we spoke he said I was all set. This ended up not being the case. 
So I filed a complaint with the credit bureaus but their investigation results indicated that NFCU claimed my payment was late, so it remained on my credit report as late. This has caused serious damage to my credit score and has harmfully impacted my life in several ways, such as being to obtain employment, get car insurance, be approved for a loan, rent an apartment, apply for credit, or even joining organizations that take credit score into account. Every other credit card I have and have ever had apply payment that same day or the next business day. 
I have attached the credit card statements for XX/XX/2022 and XX/XX/2022 showing when the payment was applied. I have also attached the email I received from them on XX/XX/2022 showing when I made the payment via telephone. What's even worse is that I had frozen this card and actually closed the account due to financial hardship during COVID. But I still continued to make on-time monthly payments every single month dating back before the pandemic and right up to this day. I've never missed a payment or have been late. Over 50 straight on-time payments and counting. The credit bureaus and any entity pulling my credit history is interested in seeing if I actually PAID a bill on time, not how long it takes ( 4+ days ) this antiquated financial institution to process that payment. This is misrepresenting my actions and misinforming any inquiring creditors of the facts. I did not PAY late! They processed my payment slowly caused it to miss their own deadline. That is what should be reported on my credit report. The truth. 
Furthermore they are also misrepresenting the nature of this account. This is a CLOSED account but they are reporting it as a revolving account that has XXXX credit but a high balance. So they are adding the account balance to my overall total revolving credit usage. Its effectively making it seem that I am sometimes over 100 % usage across all of my revolving credit accounts. This is also very damaging and not accurate. It is not a revolving balance It should be reported as an installment account. I just continue to pay it down in installments faithfully every month but they just keep continuing to damage my financial health and all the other basic life needs that rely on my credit score. Please have NFCU remove this inaccurate late payment from my credit history and correctly report it as a closed installment account, not revolving. 
Thank you XXXX XXXX XXXX

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