Inaccurate Credit Reporting on Mortgages Hurting Consumers

Banks and their mortgage loan servicing companies are increasingly reporting consumers late on mortgages when they were not late and even when the mortgages were paid in full. Reuters reports on these inexcusable practices causing consumers no end of financial problems.

Homeowners are finding that mortgages they thought were dead and buried are springing back to life. Sometimes, the end result is a foreclosure.

“It’s the most egregious manifestation of an industry that’s seriously broken,” said Ira Rheingold, director of the National Association of Consumer Advocates.

An attorney with the National Consumer Law Center has seen hundreds of foreclosure cases and in nearly all of them, the homeowner was not in default. The main problem is faulty records on the part of mortgage servicers.

Consumers have remedies under the FCRA. When letter writing does not solve the problem, consumers should find an attorney to sue the responsible parties.

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