Consumer complaint received 2018-10-01
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem — Difficulty submitting a dispute or getting information about a dispute over the phone
Company: MIDCOUNTRY FINANCIAL CORP (VA)

Complaint:
In XX/XX/2017, I had opened an unsecured loan with XXXX. Upon opening of the loan, I had not setup any automated payments. I was under the impression per the conversations that I had with XXXX that my first payment was due in XX/XX/XXXX. 

Apparently, the loan was setup middle of the month of XX/XX/XXXX and the first payment was due in XX/XX/XXXX. I had no knowledge of the late payment until I was contacted by XXXX in XX/XX/XXXX. 

When I was contacted, there was an issue with my military pay where they changed my status erroneously which caused me to go the entire month without pay. I had contacted XXXX to let them know the issue and made a promise to pay via an allotment. I had a total of {$200.00} that I could pay them as a token of goodwill, which I made. Once the military had settled the pay issue, I was able to rectify the difference owed and setup my account for auto payment. 

The account had been automatically paid via an ACH from my checking account every month since then. The issue is that my account has been reporting as 30+ days late on my credit report every single month. The only reason that I found out this was happening was because my wife and I applied for a mortgage. When we applied, our loan officer asked why we have been 30 days late with them for months. The was information that was new to us and we quickly called XXXX to rectify the situation. Between countless phone calls, multiple departments and countless different responses, there has been no consistent statements on their behalf. 

The last call that was made we were told that because they changed systems in XX/XX/XXXX, that they would have to go back and forth between the old and new systems. The rep we spoke to provided myself with different information than what was previously given ; including alleged phone calls in which I had no recollection of. 

The issue is that had we know there was a rolling late payment reporting on our account, we would've rectified the situation months ago. 

I feel like this is a complete UDAAP violation. 

This is unfair because I had no knowledge of being continually late for 30 days for close to a year. Had I not applied for a mortgage, I still would be late. This has also disqualified me from being able to obtain VA financing. 

This is deceptive because XXXX had made no attempt to call me, they have not been able to provide me with a consistent answer and they state that they changed systems in XX/XX/XXXX which also makes it impossible for me to validate anything they state because when I check my records online, there are no documents to view. 

This is abusive because I can potentially lose out on my deposit and home which can cause me a huge financial hardship. 

Their acts and practices appear to only protect their best interest since the account was setup for automatic payments and their lack of communication, not sending any statements or emails informing me that I have been 30+ days late and their inability to provide me with a consistent, truthful detailed history of communications has given them the ability to continually collect a late payment fee from me every month. 

This has been a benefit to them. 

Also, per each conversation had ; I was told that once I setup the automatic payments, they have no records of any calls or communications made/sent to me via any method. I have had loans that once I am past the grace period of the loan ; I will receive automated calls, urgent emails, personal calls or communications via USPS that I am late, yet alone hitting the 30 day mark. The burden shouldn't be held solely on me. I setup the automatic payments to avoid any future issues as per my previously mentioned issue with my military pay. It is very convenient that as soon as I set this service up, they stated ( and confirmed multiple times ) that they never made any communications to me and they collected hundreds of dollars in late payment fees while also damaging my credit.

Company response to consumer: Closed with explanation