payment reversed, then marked 30 days late
My BoA CC is set for auto-payment from my BoA checking account. My checking account was debited for the full CC balance on the 2nd of the month. On the 9th, the payment was reversed for NSF in my checking account. I was just short this CC balance amount, but due to my error, I did not have the full amount. The payment is all or nothing, hence the reversal. Supposedly they sent me a letter on the 11th, but I did not receive it and was unable to notice the missed payment until next month's statement. By that time, BoA reported 30 days late. I called and asked if there is anything they can do and twice have been told that the only way they'd change the 30 days late is if it was bank error and in this case, their stance is that it was not bank error.
Had I been promptly notified of the NSF, I would have made payment arrangements or transfered funds from another BoA account, where I had more than enough to cover.
What should I do? Any ideas?
Was it in fact 30 days late, as measured from the due date?
If it was due, say, 20 days after statement date, but that payment was missed, and your next statement showing the error arrived a week after the next statement date, then that statement would have arrived about 37-20=17 days after the prior due date, which should have given you 13 days to get your payment in before 30 days had passed from the missed due date.
30 days late should be measured from the due date, and if it is not 30 days or more late, it should not show as late on your reports.
The auto-payment is set at the end of the billing cycle, so 30 days had past when the next month's statement arrived and revealed the payment reversal.
30 days from the billing cycle (statement) date, or 30 days from the due date?
It is 1 day late when it is 1 day after the due date.
It is 30 days late when it is 30 days after the due date.
You might dispute on the basis of FCBA. You must dispute in writing within 60 days of receiving the statement showing the error. They are required to send you a statement 14 days before any due date for which additional fees or interest would apply. If they reversed a charge, or found any other error that required reversal, then your correction of that problem would be timely (not 30 days late) if dealt with within 30 days of receiving the statement showing the problem.
What would they have done if a deposited check was reversed 6 months from now? (It is possible, since someone giving you a check could claim it was erroneous months later.) Would they claim you were overdrafted for 6 months, and therefore 6 months late? Nonsense!
What if you had not paid the CC at all? The next statement would have shown a late charge, you would have paid it promptly, within 30 days from the already past due date. Forgetting to pay the first bill would be your fault too, and you would owe the late charge, but no 30 day late would be on your credit report if the payment was made in less than 30 days from the first due date. How is this any different?
(If you had in fact defaulted and failed to pay off this card, they would still have gotten their money by just taking it out of your other account, which they can legally do as an "offsetting balance".)
At least that is the position I would take.
They could have chosen to cover it and charge you for an overdraft. On a few dollars, their decision is poor customer service at the least. They have the discretion to handle this differently, and if they want your business, they will.
The way you find out what any business relationship is worth is to push on the matter. If they don't want your business, the sooner you move to someone who does, the better.
Never use auto-payment, or any other "convenience" service.
Always review statements on arrival.
There are reasons BofA has a certain reputation. Find another bank.