Consumer complaint received 2025-02-19 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: PENNYMAC LOAN SERVICES, LLC.
State: VA

Complaint narrative:
To Whom It May Concern, I am resubmitting my complaint against PennyMac Loan Services , LLC regarding their inaccurate credit reporting while I was enrolled in a Disaster Forbearance Plan, their failure to properly notify me of credit reporting consequences, and their violation of my rights under the Servicemembers Civil Relief Act ( SCRA ) as an XXXX XXXX military member XXXX XXXX at the time. 

Key Issues with PennyMacs Handling of My Forbearance : 1. Failure to Properly Notify Me While I Was XXXX XXXX At the time of my forbearance enrollment and transition, I was XXXX XXXX military and XXXX XXXX. 
PennyMac claims they placed documents in my online account, but this is not sufficient notification for a XXXX servicemember, especially when the information significantly impacts my financial standing. 
The SCRA ( 50 U.S.C. 3901-4043 ) specifically protects servicemembers from adverse financial actions while on XXXX XXXX, including negative credit reporting related to financial hardship. 
XXXX. Failure to Disclose Credit Reporting Consequences of Ending Forbearance PennyMac failed to inform meby email, mail, or phonethat ending my forbearance would result in negative credit reporting for the months covered under the forbearance.

Their website and policy state that loans in forbearance would not be reported negatively, yet PennyMac retroactively removed my forbearance status and reported XX/XX/year> XX/XX/year> as delinquent. 
This lack of clear disclosure violates the Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681s-2 ) and Federal Trade Commission ( FTC ) consumer protection laws.

3. Legal Violations and Consumer Protections Ignored by PennyMac Servicemembers Civil Relief Act ( SCRA ) ( 50 U.S.C. 3901-4043 ) SCRA protects deployed military personnel from negative credit reporting and financial penalties due to service-related hardships.

PennyMacs decision to report my forbearance period as past duewithout proper notification or due consideration of my deployment statusis a clear violation of SCRA protections.

Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681s-2 ) The FCRA requires lenders to report accurate and complete information to credit bureaus. Since I was in an approved forbearance plan, PennyMacs reporting of past-due payments for this period is factually incorrect and violates the FCRA.

The CARES Act ( 15 U.S.C. 9056 ( c ) ) The CARES Act mandates that if a borrower is granted forbearance due to a federally declared disaster and was current on payments before forbearance, the lender must continue reporting the loan as current during forbearance.

I was current before entering forbearance, yet PennyMac still reported me as delinquent, in direct violation of this law.

FEMA Disaster Relief Guidelines My county was federally declared a disaster area by FEMA, qualifying me for disaster-related mortgage protections, including relief from negative credit reporting.

Company response to consumer: Closed with explanation