Consumer complaint received 2024-08-21
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc. (CO)

The 90 day lates appear on all 3 credit reports and I was first made aware of it during a purchase and sale of my primary residence in XX/XX/XXXX. I have since signed up for credit monitoring and become an expert due to this situation. Basically, the story starts with the CARES Act loan deferment option that was being offered back in XX/XX/XXXX. We decided to take advantage of that since we owned several XXXX restaurants and thought we might need some extra cash to carry us through the COVID restrictions. Ill keep it simple below and skip to the modification and the XXXX, XXXX, XXXX late reporting issues. 

Coming out of deferment was very confusing. I have 3 different letters from XXXX with 3 different deferment end dates, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX. In XXXX on the phone with them they said they approved me for the modification. I never received anything official until XXXX. 

In XXXX I received an automatic extension of the deferment showed up in the mail extending it to XXXX. I was basically told they changed their minds about the modification and I would have to wait. 

I waited for the paperwork and next steps, which is the letter I received at the end of XXXX. I never had to apply for the modification, and I wasnt given any term or rate options. Just had to agree and acknowledge to what they sent me. At that point it was fine as I wanted out of the deferment and we had plans to sell the house. 

I was instructed to not make any payments, other than the Trial Period and that the past interest and payments would be rolled in to the new loan amount. That made perfect sense to me and aligned with my understanding of what a loan modification was. 

As you can see from the XXXX  payment history ( attached ) late fees were never assessed for XXXX, XXXX, or XXXX A small .0035 % late fee was charged for XXXX and XXXX payment when the modification was posted. Since they rolled those payments in to the modification, I cant explain the charge and neither could XXXX. I am guessing that the timing was off from the deferment end date to the actual start date of the modification and trial period. 

The absence of late fees is also proof that the payments were made on time and per the agreement. 

I attached Web authorized transaction history from XXXX showing payments made for XXXX, XXXX and XXXX Those were the payments made/required during the modification Trial Period and all were made on time. XXXX acknowledges that they were made on time or I would not have been able to close on the modification. The Modification states that the first payment was not due till XX/XX/XXXX. The XX/XX/XXXX, XX/XX/XXXX and XX/XX/XXXX payments and interest were all included in the modification amount. 

The CARES Act excludes anyone granted the deferment from any negative reporting. Unfortunately, XXXX refuses to acknowledge this. Here are some of the facts : A modification comes at the end of a foreclosure proceeding and you agree to the terms of the modification, i.e. to stop the foreclosure. 
You have to be late ( 90 days or longer ) to start a foreclosure and modification process. I was never late. 
I was granted the deferment, per the CARES Act, without being late. This was the benefit that the CARES Act provided to any borrower that wanted to apply. The benefit was automatic deferments, without late penalties, reporting issues, foreclosure proceedings. All you had to do was apply and you are good to go. No prior lates or prerequisites. 
I dont think XXXX knows how to handle the transition from deferment to modification and they obviously held the trial period payments and posted them as late. That is probably how they did it prior to the CARES Act.

I can see now that the CARES ACT guidance to get out of the deferment and get your loan modified was lacking and left up to the servicers. XXXX has it wrong and they are treating me now like I was heading toward foreclosure and a delinquent borrower from the beginning. If that is the case I am not sure why they are not reporting many more late payments.