Consumer complaint received 2024-09-20 00:00:00
Product: Mortgage — VA mortgage
Issue: Incorrect information on your report — Account status incorrect
Company: Freedom Mortgage Company
State: WA

Complaint narrative:
I am writing to file a formal complaint against Freedom Mortgage concerning their inaccurate reporting of a 30-day late payment to the credit bureaus and their failure to adequately notify me of changes to my mortgage payment. This action has adversely affected my credit score and financial standing. 

Details of the Complaint : Impeccable Payment History and Credit Standing : I have been a customer of Freedom Mortgage for five years, during which I have consistently made all mortgage payments on time. 
Prior to this incident, my credit score was XXXX, reflecting an excellent credit history with no negative incidents in over 10 years. 
Due to Freedom Mortgage 's actions, my credit score has dropped to XXXX, impacting my financial opportunities. 

Unexpected Increase in Mortgage Payment : On XX/XX/year>, Freedom Mortgage claims to have sent a letter notifying me of an escrow review that resulted in an increase of my monthly mortgage payment from {$3000.00} to {$3100.00}. 
I was working abroad in XXXX from XXXX to XX/XX/year> and did not receive this letter until XX/XX/year>, upon my return. 

Failure to Provide Adequate Notification Despite Opt-In for Electronic Communications : Opted into Electronic Communications : I had previously opted into electronic communications with Freedom Mortgage, expecting to receive important notices via email. 
No Email Notification Received : Freedom Mortgage claims to have sent an email on XX/XX/year>, regarding the payment increase. However, I have no record of receiving this email. 
During this period, I did receive marketing emails from Freedom Mortgage on XX/XX/year>, and XX/XX/year>, promoting home equity loans. This demonstrates that they had my correct email address and the ability to contact me electronically. 
Alleged Phone Call on XX/XX/year> : Freedom Mortgage asserts they called me on XX/XX/year>. Upon reviewing my call logs, no such call was received. 
Inadequate Notification Methods : Despite having my contact information and my preference for electronic communications, Freedom Mortgage failed to properly notify me of the escrow analysis and payment increase. 

Immediate Action Taken Upon Notification : On XX/XX/year>, I received a letter indicating a late payment due to a shortage of {$130.00}. 
On XX/XX/year>, I contacted Freedom Mortgage, paid the outstanding {$130.00} immediately, and spoke with a representative. 
Assurance from Representative : The representative assured me that my account was settled and that no further action would be taken against me. 

Negative Impact on Credit Score Due to Inaccurate Reporting : On XX/XX/year>, I was alerted by XXXX XXXX and XXXX XXXX XXXX XXXX that my credit score had been negatively affected. 
Freedom Mortgage had reported a 30-day late payment, which is inaccurate given that I addressed the shortage promptly upon the first notification. 
This negative mark is the first on my credit report in over 10 years, despite a consistent history of timely payments. 

Refusal to Rectify the Situation : I contacted Freedom Mortgage to request the removal of the inaccurate late payment from my credit report. 
They refused, stating they do not offer " complimentary '' credit reversals, despite acknowledging the immediate payment and previous assurance that the matter was settled. 

Impact on Me : The incorrect negative reporting has unjustly lowered my credit score from XXXX to XXXX, affecting my ability to secure favorable terms on credit and loans. 
The negative mark undermines my five-year history of on-time mortgage payments with Freedom Mortgage and over 10 years of excellent credit history. 

Resolution Sought : I request that Freedom Mortgage immediately remove the inaccurate 30-day late payment from my credit reports with all credit bureaus.

I seek restoration of my credit score to its accurate standing prior to this incident. 
I request a review and correction of Freedom Mortgage 's notification practices, ensuring that critical account information is communicated effectively, especially when customers have opted for electronic communications. 

Supporting Documentation : Payment records showing timely payments and the immediate payment of the shortage upon notification. 
Communication records : Emails received : Marketing emails from Freedom Mortgage on XX/XX/year>, and XX/XX/year>. 
Absence of critical emails : Lack of any email correspondence on XX/XX/year>, or any other date regarding the escrow analysis or payment increase. 
Call logs proving no call was received from Freedom Mortgage on XX/XX/year>, as claimed. 
Notifications from credit monitoring services regarding the negative impact on my credit score.

Evidence of electronic communication preference with Freedom Mortgage. 

Conclusion : I believe Freedom Mortgage 's actions are unjust and potentially in violation of the Fair Credit Reporting Act ( FCRA ) due to the inaccurate information furnished to credit reporting agencies and failure to provide adequate notification. Their lack of proper communication, despite my opt-in for electronic notifications and their demonstrated ability to send marketing emails, indicates negligence in informing me of critical account changes. 

I kindly request the Consumer Financial Protection Bureau 's assistance in resolving this matter promptly. 

Thank you for your attention to this issue. I am available to provide any additional information required.

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