Legal Question in Business Law in Georgia

Using my Suntrust checking account, Automatic Bill Pay, I set up a recurring payment to my mortgage company. I placed a 12 month term on it. I did not note the expiration of the period. I ASSUMED that I would get a notice from Suntrust, as I get emails each month on my usual bill pay accounts.

The last payment was made in September 2013. I received no notice that the recurring payment had expired. Therefore the October payment was not made. When it came time for the November payment, the mortgage company started calling and actually sent someone to the house to find out what was going on.

I went to a Suntrust branch on A Saturday morning and found out about the recurring payment being expired, and no notice.

The personal banker gave me a letter stating that they did not make me aware of the payment expiring. I immediately contact the mortgage company, made all payments to get current, and provided the letter and asked that I not be penalized with a bad report on my credit report.

In the meantime, I asked for a credit card with Suntust, and was initially denied due to the missed or late mortgage payment. I protested and was given a small $2500 crdit card, which I never actuated.

Now the negative report is still on my credit history. My mortgage company states they need an official letter from Suntrust with more detail to take off the late payment.

Suntrust refuses to give me a letter due to "liability" issues. They acknowledge they do not notify anyone when a recurring payment expires, but refuse to write a letter stating that. Nor can they provide me with a copy of the terms and conditions where this would be indicated either.

In the meantime, I suffer from have a late mortgage payment on my credit, and no one willing to help, although I have never had an issue in over 25 years of making mortgage payments except this one issue.

Any suggestion?

Sincerely,

Newt Ware

Aragon, Georgia


Asked on 2/04/15, 9:13 am

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

If I read this correctly, you knew the auto-pay expired in 12 months, so it was your responsibility to note that and follow up. It is also solely your responsibility to make your house payments. While the bank certainly could have sent out a notice, as could the lender, it was still your responsibility and the blame falls on you. Thus, you don't have a legal issue. Keep working with the lender to see if they will give you a break based on your good record. On the subject of credit issues, you should not have posted your name or any other personal information, and certainly not your bank. All of this is now available to the world for anyone who might search your name.

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Answered on 2/04/15, 9:22 am
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

This was completely your fault. The setup on the auto pay very clearly explains how it works, and you can't expect the bank to override what you entered. Odds are that if you contact the mortgage lender quickly enough and go up the totem pole BEFORE they place this on your credit, they will choose not to do so, but they are under no obligation. The longer you wait the harder this will be, and you will need to talk to high-up people, not those who man the 800 numbers. Incidentally, you did something that violated the LawGuru TOS you had to read before posting, and that was to post your name and contact information. That is now all over the internet and can be used to spam you, and since you said where you bank, for identity theft. That was a huge mistake, and you should watch your credit report closely in case your post here creates such identity thefts.

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Answered on 2/04/15, 9:57 am


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