Bank rant

[roadie gal]

I am so ANGRY! I need to rant. Please bear with me...

I have a home equity line of credit. At times it's had a balance as high as $20,000 dollars. I've always paid it right down. Well, lately it's had a balance of $5.41.

I saw that balance and said to myself, "It's not big deal. I'll pay it the next time I go into the bank", because you can't pay it off online. Well, I haven't been into the bank in a few weeks.

Yesterday I get a nasty, threatening letter from the loan department because it's over 30 days overdue. So I call the loan department and find out that they REPORTED IT TO THE CREDIT REPORTING AGENCIES. For 5 lousy dollars they're going to f**k up my perfect credit for 7 years!!

I tried to talk to them about it, but the person I spoke to was a jerk to me. So, of course, I escalated, too. They refused to do anything about it.

Don't they have to write you and let you know that they're going to report you? The guy on the phone acted like I should know that. I wouldn't have even known if I hadn't called them about their obnoxious letter. I am just so angry.

This morning I'm going into the local branch to pay off the full $5.41 and to talk to the manager. It probably won't help, but it's worth a try...

[Irulan]

he may have been blowing smoke to try and scare you. I think you have to miss several payments before you get reported to a credit agency. I've been late on the mortgage a few times in the last 10 years -like once every three years - and it has not been on my credit report.

You can get a free copy of your credit report through the FTC. None of this "freecreditreport.com" subscription stuff, this is a service of the feds.

[Zen]

Follow through with a letter to the highest hole on the totem pole. The money they've made from your interest is many times that and any other bank would be more than glad to have it.

[mimitabby]

I am surprised you were treated so badly. When i was a day late (it was over a weekend) on a $23.00 balance on a visa bill, they billed me their late fee what, $25 or was it $40? and interest; some few dollars. I went ballistic too. I called them up, they saw I had paid and they forgave the extra debt.

Being pleasant and firm always helps. good luck. if not, i'd change banks.

[LBTC]

Being pleasant and firm always helps.

Lots of people can say no, but it takes someone higher up to say yes. Talk to the supervisor, then talk to their supervisor, keep doing this until you get the answer you want.

And if that doesn't work - change banks.

And yes, been there, had DH ask me to leave before I made a scene, banks seem to have some kind of evil energy about them.....

H&B
~T~

[Mr. Bloom]

I'm a banker...:eek:

No excuse for you to have treated disrepectfully ( I get letters of gratitude from customers indicating how polite and reasonable our collectors are:D ). We intervene early to avoid these kind of situations...

The unfortunate fact is:
The reporting is automatic (or automated)...current LAWS preclude one customer being treated differently from another...amount doesn't matter...


One Important thing though:

Past due is one thing...but it's 30 days past due that gets reported to the credit bureau. You may get a late fee when you're past due...but that doesn't impact your credit score until you're really past due. Are you sure it's even in issue? Note Irulan's post about free credit reports

Finally, the worst case isn't that bad (I think...credit scores are a black box that no one really knows the key...). What I mean is that if your credit was perfect before, then one delinquency probably takes you to way above average as long as there's not a pattern or delinquency. Fact is that the impact of one "tick" is probably short lived...

Here's what I do....I set up my HELOC to receive a payment each month (even when there's not a balance...). It frustrates the heck out of the bank (because their system won't accept a credit balance...) but it makes sure my credit stays pristine...and allows the bank an "out" to correct the reporting since they would have "rejected" your payment ....

By the way, is going into the bank to make the pay-off a state law or a policy of the banks?

[roadie gal]

I went into the bank and talked to one of the bank officers. He (very nicely I might say) explained things the way Mr. Silver did. (Thanks)

He explained it as "a paper cut" on my credit rather than a hemorrhage. lol I guess they all know I'm a doc. It will show up as a late payment rather than a default. If I don't have any others it won't be a big problem.

Why couldn't those rude buggers at the loan department tell me that? They made it sound dire.

I don't know if it's a state rule about not being able to pay off online. Either way, that's how my bank works.

[Mr. Bloom]

Glad I was right...I really don't have a consumer credit background:eek:

It's unfortunate that the byproduct of laws that protect consumers from discrimination also make the banks seem unreasonable and unflexible in an obvious situation like this.



Why couldn't those rude buggers at the loan department tell me that? They made it sound dire.


My guess is that the guy you were talking to at the branch was wondering the same thing...



I don't know if it's a state rule about not being able to pay off online. Either way, that's how my bank works.

Some states have laws that require that lines be automatically closed and mortgages releases when they get to $0...A ROYAL PAIN for banks and customers.

On the other hand, some banks have policies requiring that because they don't want you to pay it off and move it somewhere else without getting a chance to 'match offers'....this to me is tedious because it can be a royal inconvenience to customers (and is being used as a substitute for not being competitive in the first place...).

I encourage you to take the route I do...just set up an automatic change against your checking account (I do mine through on-line banking) and then you'll never be worried about it again...