Consumer complaint received 2019-05-12
Company: Freedom Mortgage Company
State: UT
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:
Company : Freedom Mortgage Timeline of events : Loan Number : XXXX The home closed XX/XX/2019. The payoff balance submitted included the XX/XX/2019 payment. 

On XXXX XX/XX/2019 XXXX XXXX XXXX submitted payoff for the property to Freedom Mortgage. 

According to Freedom Mortgage customer service representatives this payment was not received ( or perhaps accepted ) until XXXX XX/XX/2019 triggering a 30 day late payment. 

On XXXX XX/XX/2019, 9 days after Freedom Mortgage Representatives say payoff was received a derogatory entry is made to my credit report stating the account is open and delinquent. At this time I contacted customer service and asked why the entry was made in this manner. I was told the account was open and delinquent. Mind you at this point the home has been paid off for 10 days according to the title company. Two calls were placed on the XXXX, it is important to note that on the second call I received excellent customer service, the rep was able to understand my situation and position and even opened the dispute for me. 

XXXX XX/XX/2019 I placed multiple calls to customer service and provided the enclosed wire transfer paperwork via email. I was also informed that credit reporting was only done during the middle of the month and that for the account to show paid in full I would be required to wait until the middle of XX/XX/2019. On XXXX XXXX the account was updated on XXXX and XXXX  with the same open and late status as XXXX received on the XXXX, further damaging my credit score. On the XXXX I was instructed to wait on the credit dispute department who would answer my challenge by XXXX XX/XX/2019. 

XXXX XX/XX/2019 we received a letter not only stating that the account would not be updated but it included payment instructions on how to make our XXXX payment to resolve the delinquency. This is 26 days after payoff. Following this letter, I reached out with my grievance to the CEO. 

XXXX XX/XX/2019 I received contact from XXXX XXXX XXXX who claimed to be a Senior Vice President with Freedom mortgage. I forwarded the above timeline to Mrs. XXXX. Mrs. XXXX responded on the XX/XX/XXXX stating that they would not fix the incorrect entry. 


XXXX XX/XX/2019 I responded to Mrs. XXXX citing CFPB regulation 1026.36 Section 36 paragraph ( c ) subparagraph ( I ) which states : Consumer Financial Protection Bureau Regulation : 1026.36 Prohibited acts or practices and certain requirements for credit secured by a dwelling. 

Section 36 Paragraph ( c ) subparagraph ( i ) : Periodic payments. No servicer shall fail to credit a periodic payment to the consumer 's loan account as of the date of receipt, except when a delay in crediting does not result in any charge to the consumer or in the reporting of negative information to a consumer reporting agency, or except as provided in paragraph ( c ) ( 1 ) ( iii ) of this section. A periodic payment, as used in this paragraph ( c ), is an amount sufficient to cover principal, interest, and escrow ( if applicable ) for a given billing cycle. A payment qualifies as a periodic payment even if it does not include amounts required to  cover late fees, other fees, or non-escrow payments a servicer has advanced on a consumer 's behalf. 

While also noting that she had admitted they received the payment XXXX XX/XX/2019. At this point she broke contact and refused to speak with me. 

XXXX XX/XX/2019 Freedom Mortgage shows the account as paid off, however they have added an additional derogatory 30 day late payment for XXXX. This is impossible as the payoff for this account was received by them on XXXX XX/XX/2019. Additionally, I have contacted Mrs. XXXX and informed her that Freedom Mortgage 's inability or unwillingness to report fairly and accurately to the credit agencies has left me no other avenue but to file multiple complaints against them with multiple agencies. 

At this time we are at 42 days with them reporting incorrect status on the account and now they have added more derogatory, incorrect information to the account on my credit report.

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