Consumer complaint received 2025-12-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: CarMax, Inc.
State: CA

Complaint narrative:
I am submitting this complaint because my auto lenders reporting practices appear misleading, unfair, and potentially inconsistent with the Fair Credit Reporting Act ( FCRA ), specifically regarding how delinquency dates are calculated and reported. 

For years, my understanding consistent with common industry standards for credit cards, auto loans, and personal loans has been that the due date listed on my billing statements is the final day I have to make a payment before a delinquency is reported. This is how most financial products operate and how consumers reasonably interpret the term due date. 

However, in this case, the lender appears to have : 1. Reported a XXXX delinquency on the very morning of my due date, even though I made payments toward the outstanding balance on that same due date, and 2. Used an internal delinquency-counting method that was never disclosed to me, and is different from the method generally used in other consumer lending products, resulting in unexpected and severe credit damage.

This raises several legal and regulatory concerns : 1. Lack of Clear Disclosure ( Regulation Z / Truth in Lending Act ).

The lender did not provide clear, conspicuous disclosure that the due date is NOT the last date to avoid a reportable delinquency, nor that delinquency is calculated using internal cut-off times before the due date even begins. 
Consumers are never informed that : A due date is treated as a deadline that has already expired at XXXX XXXX, Delinquency clocks continue running even while a payment is made on the due date, and Payments made on the due date do not prevent a delinquency from being reported that same day. 
This contradicts the reasonable consumer expectation that a due date is literally the date by which payment must be made. Failure to disclose alternative or unusual delinquency-counting methods may violate the consumer understanding requirements under TILA and Regulation Z.

2. Potentially Inaccurate or Misleading Credit Reporting ( FCRA 602, 607, 623 ) Under the FCRA, furnishers must report information that is : Accurate, Not misleading, and Reflective of the consumers actual status at the time of reporting. 

Reporting a XXXX delinquency on the very day the consumer makes payment without disclosure that the lender uses a different internal method for measuring delinquency may create a misleading impression of consumer behavior, especially when : Payment was made on the listed due date, and The consumer had no way of knowing that the due date did not protect them from new reporting.

A lender can not assume consumers understand internal timing, cutoff clocks, or non-standard delinquency calculation systems.

This creates inaccurate expectations and may result in inaccurate credit reporting, which is prohibited under FCRA 623 ( a ) ( 1 ) ( A ).

3. Unfair or Deceptive Acts or Practices ( UDAAP ) The practice of : Labeling a date as a due date while using undisclosed past-midnight internal rules to
mark a consumer delinquent, and reporting severe delinquency on the same calendar day the consumer pays may be considered unfair or deceptive, because it takes advantage of a consumers reasonable belief that the due date protects them from delinquency reporting.

A consumer can not comply with a requirement they are never informed about, and this creates a situation where a consumer can not reasonably prevent harm.

4. Consumer Harm : The lenders practices cause : Damage to credit score and creditworthiness, Long-term negative impact ( a XXXX delinquency remains for up to 7 years ), Loss of eligibility for loans, housing, or lower interest rates, and Significant emotional and financial stress. 
This harm occurs despite the consumer making payment on the same calendar day the delinquency was reported, which contradicts the purpose of a due date in ordinary lending practices.

Company response to consumer: Closed with explanation