Saturday, January 02, 2010

Lender's Credit Reporting Error On Paid Off Car Loan Puts Kibosh On Consumer's Home Refinancing Plans

In Winnipeg, Manitoba, CTV News reports:
  • A credit report mistake made by a financing organization has cost a Manitoba family thousands of dollars and has cast a cloud over its Christmas. In June 2008, Nancy Klassen, who lives near Morris, says her family paid off a GM minivan. But when they went to get a lower interest rate on a home they've lived in for 16 years, they were denied.

  • The family found out GMAC Financial had put a mark on its credit report saying they were in arrears on car payments, says Klassen. "We paid...and we paid early," says Klassen. With such a bad credit score, the Klassen family could only get a mortgage at 15 per cent, paying more than $1,500 each month. After months of corresponding with GMAC Financial, the group admitted to the family it made a mistake but will not give compensation until a new mortgage is secured.

For the story, see Credit report error sets family back thousands of dollars.

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