Consumer complaint received 2025-08-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Nations Direct Mortgage, LLC
State: IL

Complaint narrative:
To : XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) Attn : Legal Risk Management / Executive Escalations XXXX XXXX XXXX XXXX, XXXX, TX XXXX Nations Direct Mortgage LLC Attn : Legal Department / Mortgage Servicing Compliance XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, IL XXXX From : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, IL XXXX Date : XX/XX/XXXX Subject : FORMAL LEGAL NOTICE TO CURE DEMAND FOR DOCUMENTATION AND DELETION OF FALSE LATE PAYMENT REPORTING ( Accounts ending in [ XXXX XXXX : XXXX ] and [ Nations Direct : XXXX ] ) To Whom It May Concern, This letter serves as formal notice under FCRA 623 ( a ), 623 ( b ), and 1681i, as well as applicable state consumer protection laws, regarding false late payment reporting on my mortgage accounts that were paid in full but remain derogatory in credit reporting. 

You are hereby placed on notice that your continued furnishing of unverifiable derogatory data is a willful violation of federal law. 



1 ) VIOLATIONS CITED FCRA 623 ( a ) ( 1 ) ( A ) : Furnishing information known or believed to be inaccurate.

FCRA 623 ( b ) ( 1 ) ( A ) - ( D ) : Failure to conduct a reasonable investigation of disputed information. 
XXXX XXXX Reporting Guidelines : Failure to properly document and transmit First Date of Delinquency ( FDDO ) and accurate payment history. 
XXXX XXXX XXXX XXXXXXXX XXXX XXXX  ( XXXX ) : Billing statements alone are not competent evidence of delinquency. 
XXXXXXXX XXXX XXXX ( XXXX ) : A furnisher must conduct a reasonable, good faith investigation, not rely on automated verification. 
XXXXXXXX XXXX XXXX ( XXXX ) : Data furnishers must have supporting documents, not just system notes, to verify negative credit data. 



2 ) LEGAL DEMAND FOR DOCUMENTATION Within 15 calendar days, you must produce the following for each disputed late payment : 1. Full Accountant-Level Payment Ledger : All transaction dates, amounts due, amounts paid, posting times, and grace periods for the disputed months. 
2. Signed Mortgage Note or Payment Agreement : The original agreement that governs due dates and defines what constitutes a late payment under your servicing policy.

3. Complete ACDV File : Copy of the Automated Consumer Dispute Verification form and your entire response provided to the CRA for each dispute filed by Experian and TransUnion.

4. Internal Investigation Records : Names and titles of personnel who conducted the investigation.

Methods used to verify the late payment. 
Logs, notes, emails, or system records showing how you determined the payment was late and accurate. 
5. Any other documentation you rely on to justify continuing to report these late payments post-payoff.

3 ) LEGAL DEMAND FOR ACTION If you can not produce all of the above, you are required to : Delete all late payment notations from all consumer reporting agencies ( XXXX XXXX XXXX XXXX ).

Update account status to Paid/Closed/Current with a {$0.00} balance. 
Provide written confirmation of deletion and correction to me and all CRAs. 

Failure to comply will result in : Immediate filing of CFPB, FTC, and State AG complaints citing violation of FCRA and RESPA.

Federal litigation and/or arbitration seeking statutory damages of {$1000.00} per violation, plus punitive damages, attorney fees, and costs. 
Request for discovery of your policies and procedures in full for compliance violations. 



NOTICE OF INTENT TO SUE This is your final opportunity to cure. 
If you can not fully substantiate your reporting with the requested documentation, continuing to report these late payments will be considered willful misconduct under FCRA 1681n.

This will expose your institution to statutory and punitive damages in federal court. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation