Consumer complaint received 09/14/2017 about Credit reporting, credit repair services, or other personal consumer reports (Credit reporting) with MIDFIRST BANK (GA).
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint: Re : loan number XXXX On XX/XX/XXXX, after applying for a VA loan, I was denied due to inaccurate reporting by your company XXXX XXXX a division of Midfirst bank. 

Your company is reporting to all three credit bureaus that I have been making my mortgage payments late for the last 11 months through XXXX. In addition, your company has been charging my account late fees on those payments. 
The matter of late fees had been settled on XX/XX/XXXX when I paid XXXX {$280.00} to bring my account current of all late fee charges. It was my understanding if I paid the {$280.00} in late charges you would update my credit file account as current and removes the late payments from my credit file. To date that has not happened. In the transaction history, that I am able to access on your website, and the detail history sent to me by your company, there is no record that any additional payments having been made. Although the money was taken from my bank account, XX/XX/XXXX, one day before the regular ACH withdrawal was to occur ( see attached In fact, after reviewing the transaction history on XX/XX/XXXX I noticed while I am paying more than the payment amount of {$580.00} ( I have been paying {$650.00} ) the difference of {$70.00} is being charged back to me as late charges. 

You are reporting that I am paying my mortgage late. In actuality my mortgage payments were and have been made on the XXXX of every month before the monthly due date through the ACH. According to The Consumer Financial Protection Bureau : 1005.10 ( a ) ( 2 ) Crediting A financial institution that receives a preauthorized transfer of the type described in paragraph ( a ) ( 1 ) of this section shall credit the amount of the transfer as of the date the funds for the transfer are received. '' Although, XXXX has been receiving the payments, you have been, distributing the payments in two parts with the second disbursement of the mortgage paid after the due date around the XXXX of the month or later incurring a late charge and reporting to the credit bureaus as late. 

For example a letter dated XX/XX/XXXX from you XXXX the letter states you have not received my mortgage payment for XX/XX/XXXX. The letter shows what the payment was supposed to be {$650.00} and assessed a late charge for XX/XX/XXXX in the amount of {$26.00} with a previous late charge of additional {$26.00} bringing the total for my XX/XX/XXXX mortgage payment to the total amount of {$700.00}. The payment was made onXX/XX/XXXX was the first late charge was assessed on XX/XX/XXXX ; However, I was being charged additional monies for " Previous unpaid late charges ''. In contradiction to the transaction history I had a XXXX balance for late fees. 

After speaking with one of your representatives named XXXX on XX/XX/XXXX I was informed, according to your records in XXXX I had elected to have my mortgage paid through bi-weekly drafting paid in two parts on the XXXX and the XXXX of the month. Even though the ACH payment set through my bank is on the XXXX of every month. 
Furthermore, I was informed that even thought I pay my account monthly I never informed XXXX on how to apply the payments, and I would need to contact the ACH processing department to instruct them on payment disbursal. I was given the names and telephone numbers of three companies XX/XX/XXXX, XX/XX/XXXX and XXXX because the service representative could not tell me which ACH company serviced my account. 
XXXX XX/XX/XXXX took it upon itself to hold the payments that were being made and then distribute the funds at a date of your choosing. The funds should have been allocated specifically towards the principle and interest of my mortgage with any additional funds held in escrow. 
Again, according to The Consumer Financial Protection Bureau Your company was supposed to contact me if it noticed an error was made or to request clarification on how the funds were to be disbursed : 1005.33 ( b ) ( 2 ) Request For Documentation Or Clarification. 
Request for documentation or clarification. When a notice of error is based on documentation, additional information, or clarification that the sender previously requested under paragraph ( a ) ( 1 ) ( v ) of this section, the sender 's notice of error is timely if received by the remittance transfer provider the later of 180 days after the disclosed date of availability of the remittance transfer or 60 days after the provider sent the documentation, information, or clarification that had been requested. 

As the a conscience consumer it is my responsibility to make all of my payments in a timely manner. I expect my payments to be reflect being paid in that manner as well. 
XXXX has failed to do this and through your erroneous reporting and confusing and complex style of record keeping it has caused me great financial harm. 

In fact, because of XXXX 's erroneous and chaotic reporting system every effort I have made have my home refinanced to another mortgage broker or modified through the HAMP or HARP programs all have my efforts have been blocked by XXXX. 
For example XX/XX/XXXX my application for assistance through XXXX XXXX for the HARP program was denied. Even though my home was then and still underwater. It is only now that I am aware that my mortgage payments were and are being held as unapplied funds and faulty record keeping is the reason why I was denied. 

In XXXX I was able to refinance with XXXX for a lower interest rate at the original purchase price of the home. After 9 years of paying on the home the difference was equal to the exact amount of closing costs you were charging. In reality you XXXX XXXX charged me excessive fees close to {$5000.00} to to refinance on my mortgage on a note you already held. 


Because or your reporting my credit score is low and I am being denied credit credit opportunities. 

I would like my credit report corrected by XXXX and then I would like to have the excess money that I have been paying in late charges returned to me as well as the {$280.00}.

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 monetary relief