No fee unless we win|Helping people nationwide|The company that broke the law pays our fees
Mon–Fri 8:30–6 CT · Online review 24/7

Lenders, collectors & servicers

Can a creditor report a late payment when I paid on time?

Short answer

No. Reporting a payment as late when it was made on time is inaccurate, and federal law requires furnishers to correct inaccurate information. You can dispute it with the creditor and with each credit bureau, and the creditor must investigate a bureau dispute.

A single late payment can lower your credit scores and affect loan terms, so a false one is worth fixing quickly.

Why on-time payments get reported late

  • A payment was misapplied to another account or posted to the wrong date
  • Autopay failed on the lender’s side, or a payment change was not processed
  • The loan moved to a new servicer and your payment went to the old one
  • A payment during an approved deferment, forbearance, or modification was not required at all

Under 15 U.S.C. § 1681s-2(a), a furnisher may not report information it knows or has reasonable cause to believe is inaccurate, and must correct information it learns is inaccurate. When you dispute through a credit bureau, the furnisher must investigate, review the information the bureau sends, and modify, delete, or block the late payment if it is inaccurate or cannot be verified.

For mortgages after a servicing transfer

Federal mortgage servicing law (RESPA) provides that during the 60 days after a servicing transfer, a payment received by the old servicer before the due date may not be treated as late for any purpose (12 U.S.C. § 2605(d)).

How to dispute

  • Gather proof: bank statements showing the payment cleared, confirmation numbers, autopay records, and account statements.
  • Dispute directly with the creditor; payment history disputes must be investigated under Regulation V.
  • Dispute with each bureau showing the late payment, and attach your proof.
  • Keep copies of everything and note the dates you sent each dispute.

A late payment that was accurate is harder to remove; some lenders will consider a goodwill request, but they are not required to agree.

If a creditor keeps reporting a late payment you can show was on time, a free case review can help, with no fee unless we win.

Related

Sources

Updated November 2026. This page is general information, not legal advice.

No fee unless we win

The company that broke the law pays our fees.

CallTextFree Review