Can I sue a bank for continually and incorrectly posting my account as late?

UPDATED: Jan 13, 2011

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Can I sue a bank for continually and incorrectly posting my account as late?

I have a mortgage through a bank and for about a year and a half they have had my account incorrectly showing as being in their home retention program. Only thing is, I have never requested to be in the program and have never made a late payment in my life. Every single month I have called them and explained this to them, only to be assured that they had fixed it. I have spent hours and hours on the phone, submitted an email, all to no avail. The month of Novemberthey posted my payment as late. I have the bank records to prove otherwise. When I called them they again fixed their mistake, however when I got my December statement it included another late fee. Once again I called them and they saw that they had not posted my payment correctly, and supposedly fixed it. I was also assured that their mistake would have no effect on my credit. I received a letter stating the same. When I called them today to make my January payment they still had the late fee showing. Once again they “fixed” it. However the customer service rep did say that it had posted a 30 day late on my credit report; she said to give them a few days to get fixed. This is ridiculous, I am completely fed up. Do I have any legal recourse?

Asked on January 13, 2011 under Bankruptcy Law, Idaho


MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 12 years ago | Contributor

You have recourse usually through your state's consumer protection laws. Find out who regulates your mortgage lender or servicer by the following: if it ends in N.A., it is regulated by the OCC (office of comptroller of the currency). If it ends with FSB or FSA, it is regulated by the Office of Thrift Supervision.  If it is neither, contact your state's department of financial institutions and see if that agency regulates it. Be very clear about your complaint; include all supporting documentation and file a complaint.  The agency tasked with regulating the entity can investigate it and see if it can be resolved quicker than what you have been attempting on your own.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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