Credit Dinged – Bank Screwed up?

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I have several late payment “dings” on my credit as a result of a loan that I co-signed with my former husband. After our divorce, he continued to pay on it for several years and I never thought more of it. Evidently the bank that held the loan was sold to PNC Bank in 2007, and in late 2007 my former husband evidently fell upon hard times and began making his payments over 30 days late, which obviously caused late payment dings to be put on my credit. My issue is that PNC Bank never let me know that they had taken over the loan from our “hometown bank” when they acquired it. Our bank had been good about keeping me in the loop as far as loan correspondence, etc., but something fell between the cracks because when the loan was sold, PNC Bank only notified my former husband and not me (even though our former bank – Annapolis Bank & Trust) had my correct info. I had no idea that the loan had gone into default until about 6 months ago, when my husband and I applied for a mortgage loan and found that there had been 3 recent late payments from PNC Bank. After investigating – I told our loan officer it must be a mistake since I did not have a loan with PNC Bank – we discovered that they had acquired AB &T in 2007, but never told me. I am not having any luck getting PNC to remove the late dings from my credit. I am more than happy and able to pay on this but I had no idea they bought the loan and no idea that the loan was late OR about to be defaulted on. What recourse do I have? I have reported the late payments as disputes to the three major credit agencies but PNC won’t expunge the late payments from my record. I am willing to push the envelope all the way up the PNC line but need some suggestions on the best way to go about this. Thanks!!!!!
Sorry, I should have clarified this better. I am the “co-borrower”, so it’s in both of our names – sorry, made it sound like it was his loan that I co-signed.

I’m unsure of my credit score. I pulled my credit report but it doesn’t give a score. Not sure where I can get that. Last time I checked it was in the high 600’s. I have 3 dings on my credit, 1 late payment from Dec 2006 when my payment protection didn’t kick in right away after an auto accident, 2 collection accounts (1 with Verizon for a home phone – small amount but I never recieved the bill however it is paid off once I received the collections notice & 1 ambulance bill that never got paid by the insurance).

All other 5-6 accounts I have are in perfect standing, never been late and paid more than the minimum payment every month. I got denied by PNC Bank for a personal loan so I’m looking into other banks. I know that mortgages & car loans have multiple banks/institutions being checked so that you can see which works best for you, and at the end of 30 days all those inquires for the mortgage or car loan are lumped into one credit report inquiry. Do personal loans work the same way?

  1. Reply
    February 11, 2011 at 11:25 am

    good question but the Fair credit Reporting Act will make PNC keep the posting as is. You were not informed because the loan was in your ex husbands name as the borrower, that is why he got all the bills on this. The person you should be pissed off at was your divorce atty who should have had him refi the note and show proof of that shortly after the divorce was final, but they never do that as every one is honest and reliable in financial matters as you have now discovered. Your new husbands credit and income are what you can qualify the new loan with now as yours is screwed. Now you may get a sympathetic underwriter who may take the divorce and settlement into account but if it has gone to judgment —good luck
    Sorry but that is the way it is
    I am a mortgage banker in TN & KY

  2. Reply
    Charlotte K
    February 11, 2011 at 11:53 am

    I agree with golfer.. you should have had your named removed from the loan during the divorce. I would contact the divorce lawyer and see what he can do.

    Also keep the pressure on PNC..

  3. Reply
    My Take on It
    February 11, 2011 at 12:44 pm

    No, they don’t. They are counted as separate inquiries. Only auto and mortgage shopping counts as one lump inquiry at the end of a 2 to 4 week period.

    As for getting your FICO score, you have to pay for it. It is under $ 20 at:

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