Bank issues uncashed refund check then reports late payment on balance it created
A bank removes funds from a customer account to issue a refund check, but when that check goes uncashed, the resulting negative balance is reported as a late payment to credit bureaus. The customer who has a perfect eleven-year payment history is penalized for a balance the bank itself created. This circular reporting error causes significant and unwarranted credit score damage.
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Banks deny refunds despite comprehensive documentation from customers
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