I've always had fairly good credit (my fico typically hovers around 790-810). After 20 years without a past due account, I inadvertently missed a payment on a Kohl's card in Dec. '09. I had opened the account a few months earlier when the cashier gave me the, "you can save 20% on your purchase today if you open a Kohl's account." Against my better judg ment, I relented to my wife's opinion that it was worth the $60 savings. When I got my first statement, I immediately went online and setup a payment through my checking account. While I was at it, I also checked the option to receive my statements electronically (since I never look at them anyway...). A few months went by, and I made a few purchases online here and there, and when I got my email every month that my statement was available, I always just ignored it as I thought I'd setup automatic bill pay and everything was being taken care of. Finally in Jan '10, I got a call from Kohl's collection dept that I was 2 payments past due. I argued with the guy that it couldn't be and explained that I had set up bill pay to pay the balance every month. He informed that they didn't have automatic bill pay. I was so infuriated, I asked him to close the account and I paid it off. I immediately checked all 3 bureaus, and the late payment was only reflected on Experian. I sent a Kohl's a goodwill letter explaining what had happened and asked that they remove the past dues. A few weeks later, I got a letter from Kohl's declining my request. Afterwards, I disputed the past dues through Experian's website. I can't recall if I explained what had happened or if i just checked a box to dispute and left it at that. Anyhow, a couple of months later, I got an email from Experian stating that item had been deleted. At that point, I thought everything had been taken care of; however, I checked my checked TransUnion fico today and it was 746. I figured the only explanation was that past due on Kohl's had finally been reported to TU. I pulled my free annual from TU, and sure enought, the past due was there. My question is, what should I do now? I'm planning on upgrading our home within the next year, and I'm afraid my rate is going to get screwed (I'm planning on a 15-yr fixed). Am I making too much of this? What difference would the rate between 746 vs 795? Will the lender look at all 3 ficos and use the worst/best/average? Should I try to dispute with TU? If I do, should I explain what happened or just check the box and not input and explanation?
It doesn't sound like you're going to get much help from Kohls based upon their previous response, so the best route to take is probably disputing through TU just like you did with Experian. You could always try the "goodwill" route with Kohls one more time just to see if you have better luck the second time around. You'll definitely want to have above a 750 FICO to qualify for the best rates and terms on a loan, so it sounds like you're right on the cusp in terms of your current TU- based FICO. Of course, if your lender doesn't pull TU and only uses Experian or Equifax, then it wouldn't make much of a difference. Sometimes you can ask beforehand and find out which scores a lender will use, but they generally don't pull all three. They will pull your wife's scores too as part of the process.
Regarding disputes, are there any pros/cons for snail mail vs website? If I go through the website, should I just check the box disputing the past due or should I enter an explanation? Are there any risks in entering a dispute? Thx
There aren't any major risks when disputing, but you should be aware that your credit reports will show that the account is being disputed. Unless you're applying for credit right now, that won't be an issue. As soon as the dispute is completed, the notation should be removed. I think it's always better to avoid the online dispute process and do it via snail mail. Keep it in writing and send your letters CMRRR so you can keep track of when it's received and when they respond.
For a mortgage, they usually DO pull all three reports. Then they use the middle score. So you need to monitor them all. As time passes the impact lessens. You're pretty close right now, so in six months to a year you may add those needed points. Pull them all and make sure two of them stay above 750 so your middle score is good. But remember that the score used for a mortgage is not the same as the score you are seeing. You might want to talk to a mortgage broker in your area and see what the requirements are. They may vary from place to place.
Called Kohl's credit this morning and spoke with the credit supervisor on duty ("Perla"), and recounted my saga. When I was done, she said, "We reviewed this previously. Did you receive the letter?" I said that I had, but I thought they might reconsider in light of my circumstances and the fact that it was an honest mistake on my part. And she said, "We don't make corrections unless there is a mistake on our part. We stand by that policy." Guess I'll have to dispute with Experian. Should I simply submit a generic dispute like "This account was never paid late" or recount the whole story? I'm afraid the details will work against me in the dispute review ("after all it is your own fault. You'll have to suffer the consequences of your own mistakes.") Thx
I sure wouldn't tell the CRA the story. That's just self-verifying. And besides, the CRA is very unlikely to accept documentation from you. They are a reporting agency, reporting what their subscribers (the creditors) tell them. Try disputing it, but this may just be something you'll have to live with for a while.
You situation is very disturbing and we as customers need to push back wherever we can. The Kohlâ??s credit program is actually Chase Bank USA, National Association. You need to realize they have more than likely penalized three times for this honest mistake. You probably paid a late fee, if you carry a balance you have paid additional interest on the unpaid balance and now your credit score is affected. Additionally, if you have other accounts with Chase, and they run one of their â??risk basedâ?? scoring programs, you could fall into a â??higher riskâ?? category where you are penalized again as your limits and fee structures could change as a result. Enough is enough! If I were you, I would pay the balance in full (or a soon as possible). I would write them (Chase and Kohlâ??s) a letter (certified, return receipt) explaining that you do not agree with their business practices or, customer service, as they are an unacceptable financial partner. I would let them know the penalization is too costly and they will no longer receive revenue from you. With the new Unfair and Deceptive Acts and Practices (UDAP) ruling, we can expect more of this behavior from our financial partners, card issuers. We as customers (not consumers, rather their customer) must let them know we are not going to tolerate it. Just my 2 cents!
Pretty good advice except for that UDAP business. In some states that's great advice too and in others it isn't. UDAP laws aren't new by any stretch of the imagination in most states. Many states such as California have gutted their UDAP laws down to nothing and Oklahoma's is a joke to start off with. So UDAP depends on the laws of each state individually.
You are absolutely right. Here's how the actual charges occurred: Internet Order 11/12/09 $87.45 Late Fee 12/17/09 $29.00 Interest 12/20/09 $1.25 Late Fee 01/14/10 $29.00 Interest 01/20/10 $2.00 So, in 2 months, I wound up paying $61.25 in interest/fees on a $87.45 purchase. 70% ROI in 2 months, what kind of return is that on an annual basis? Sounds like loan shark territory...
