Consumer complaint received 2024-05-31 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: VYSTAR CREDIT UNION
State: FL

Complaint narrative:
am writing to file a formal complaint against VyStar Credit Union for improperly reporting a paid-off XXXX account to my credit report. 

I have been a member of VyStar Credit Union and have enjoyed their services. However, I opened another XXXX  account at a different bank due to its closer proximity to my home and the necessity of frequent cash withdrawals, which helped me avoid accumulating costly ATM fees. After transferring my primary deposits to the new account, I inadvertently neglected my VyStar checking account. I did not close the account or freeze my debit card, which led to an unexpected charge, resulting in an overdraft. This overdraft pushed the account into a negative balance, which was subsequently reported to the credit bureaus, and this was how I first became aware of the issue. 

I acknowledge my responsibility in not monitoring the account more closely. To rectify the situation and demonstrate my sincere apologies for this unintentional oversight, I promptly visited the nearest VyStar branch and spoke with a manager. The manager assured me that such situations were relatively common and advised me to settle the owed balance, which would then result in the negative report being removed. Following this advice, I immediately paid the outstanding amount. 

Despite my prompt payment, the account status was updated to reflect only as paid, rather than removing the negative mark entirely. This has significantly impacted my credit score, adversely affecting my ability to obtain better financial products and impacting my financial stability. As I am currently in the process of purchasing my XXXX XXXX, this negative account is particularly detrimental, potentially resulting in higher interest rates. 

Furthermore, I never agreed to overdrafts on this account, which was the main reason it went negative and was subsequently closed. Additionally, I never agreed to have this account information furnished to my credit report. According to the Fair Credit Reporting Act ( FCRA ), Section 623 ( a ) ( 1 ) ( A ) [ 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) ], furnishers of information to credit reporting agencies must ensure that the information they provide is accurate and have proper authorization. I request VyStar Credit Union to provide proof of my agreement to these terms. 

Given the circumstances, I kindly request that the CFPB investigate this matter and instruct VyStar Credit Union to remove this account from my credit report. I understand and accept my part in this oversight, but I hope that my prompt actions to resolve the matter can be taken into account. The situation was entirely unintentional, and all owed balances have been fully paid. If VyStar fails to correct this account, I will consider taking legal action against them for not ensuring maximum possible accuracy, as required by the FCRA, Section 607 ( b ) [ 15 U.S.C. 1681e ( b ) ]. 

Thank you very much for your time and understanding. I deeply appreciate your assistance in this matter.

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