Consumer complaint received 2025-06-02 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Problem with a company's investigation into an existing problem — Investigation took more than 30 days
Company: Shellpoint Partners, LLC
State: CA

Complaint narrative:
To : XXXX XXXX Compliance Department Shellpoint Mortgage Servicing Dear XXXX XXXX, I am writing to formally request that Shellpoint Mortgage Servicing remove the inaccurately reported late payment for XX/XX/XXXX from my credit report in connection with Loan # XXXX for the property located at XXXX XXXX XXXX, XXXX XXXX, CA XXXX. 


As stated in my prior complaint to the CFPB and multiple conversations with Shellpoint agents before XX/XX/XXXX, I contacted Shellpoint early and frequently after a declared natural disaster severely damaged my property on XX/XX/XXXX. FEMA officially designated the region a disaster area shortly thereafter.

I initiated calls on XX/XX/XXXX and several more times prior to the 30-day delinquency threshold to ask whether to make the XXXX payment or preserve funds for emergency mitigation and safety repairs. During those calls, I was advised that I could enter a forbearance and would not be penalized for deferring the XXXX payment. This advice formed the basis of my decision not to pay XXXX at that time. 

Shellpoints own letter, dated XX/XX/XXXX, confirms the start of a forbearance period. I relied on that written communication in good faith. However, the XXXX payment was later reported as 30 days late to the credit bureaus, despite my early and consistent contact and reliance on Shellpoints assurances. As a result, my credit score dropped over XXXX pointsmy first and only derogatory mark in years of timely payments.

The Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( a ), mandates that furnishers of credit information report accurately and not in a misleading manner. Courts have ruled that even technically accurate information can be misleading in context. In Saunders v. Branch Banking and Trust Co., 526 F.3d 142 ( 4th Cir. 2008 ), the Fourth Circuit held that a furnisher can be held liable under the FCRA for reporting that is technically accurate but materially misleading.

Further, Campbell v. Experian Info. Sols., Inc. , No. 1:21-cv-175, 2022 WL 3210713 ( E.D. Va. Aug. 8, 2022 ) reaffirmed that a forbearance or deferment should prevent adverse reporting if the borrower was told no payment was due.

Additionally, under guidance from the Consumer Financial Protection Bureau and the Coronavirus Aid, Relief, and Economic Security ( CARES ) Act, if a borrower is in a forbearance due to hardship ( including declared disasters ), servicers should not report the account as delinquent. Although the CARES Acts specific mandates have sunset, the regulatory precedent and consumer expectation around fairness and good faith negotiations remain.

In my case, I made diligent efforts to seek clarification and guidance before the 30-day delinquency window closed. I was never advised that my loan would fall out of good standing if I waited for forbearance approvala decision influenced entirely by Shellpoints verbal and written communication.

Finally, Shellpoints suggestion to contact departments that can not resolve the issue, or to mail letters to offices with no authority, has only prolonged the problem. The provided contact numbers and internal referrals have been ineffective in correcting this unjust situation.

I respectfully request that Shellpoint Mortgage Servicing remove the XX/XX/XXXX late payment from my credit history immediately due to the following : I proactively contacted Shellpoint well before the 30-day late mark.

I relied in good faith on verbal and written assurances from Shellpoint that I could defer XXXX payment.

The late reporting is materially misleading and harmful.

Established case law and FCRA guidance support correction where reporting is technically accurate but contextually false.

The property was impacted by a declared disaster, and I acted promptly and responsibly under those extraordinary circumstances.

Please provide written confirmation of the deletion of the derogatory reporting and confirm that updated information will be furnished to all credit bureaus. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Loan Number : XXXX Phone : ( XXXX ) XXXX Email : XXXX XXXX

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