Mortgage Bounced Check

In July I suffered identity theft with my bank account. My July payment was reversed due to the bank freezing my account.

I then continued paying Aug, Sept,and Oct. I also applied a partial payment for July but my mortgage company won’t apply it until its a full pament.

All this time they continue to report 30-60 days late and add late fees, and default notices.

Is this legal or ethical?

Kay

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Hi Kay,

That’s a tough one.  The FCRA has a provision for blocking tradelines that are the result of Identity Theft, but that doesn’t apply to your situation.  You could use the RESPA Section 6 to fire off a few Qualified Written Requests and insist that the payments were mailed in good faith.  You wouldn’t have any recourse for them not correcting the ‘error’, but you would be creating a private right of action for their refusal to investigate and respond.  That would be one option.  Another option would be a Goodwill Letter.

Read: Goodwill Letter Is A Double Edged Sword

Thanks for the questions and hope this helps.

Paul

This author is not an attorney and this information should not be considered legal advice.  Please consult an attorney for legal advice.