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markatty

Warning About Lexus Financial

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2008 has been a horrendous year for our family. In the past three months my mother died, my aunt died and my brother-in-law died. With travel for business and all the planning for the funerals and memorial services we didn't get to our bills. Toyota Motor Credit Corp d/b/a Lexus Financial called us to remind us that we were late on a payment. We sent them a check later that week, which the woman said was fine.

What she didn't tell us was that they reported the late payment to two credit bureaus; Experian and Equifax. Not a single other creditor, not Chase Mortgage, not Visa, not Mastercard, AmEx, or Verizon reported this single late payment. The ones we contacted were sympathetic and understanding.

Luckily we have a very good credit rating so I expect this one black mark on our credit record should not be a problem, but given the way that banks and other credit agencies are turning down people without perfect credit, I just suggest you be very careful when dealing with Lexus Financial. I could have gotten a better rate at my bank, but used Lexus Financial, because of the convenience. If I buy another Lexus, I certainly won't use their financing again.

BTW: The woman who called from Lexus Financial claimed that paying via online banking was slower than if we sent a paper check. She said it could take up to ten days to get them. Does anyone know if Lexus Financial accepts ACH like most creditors do?

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I'm sorry to hear about the events that you've had to endure this past year. Most creditors would exhibit some type of understanding of how these situations effect people. I'm shocked the Lexus/Toyota Financial has not done a better job but I'm pretty certain that if you try to work things out with them they can make an adjustment to the mark they put on your credit report.

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Right now , all financial are hearing sob stories and have to take it at face value depending on the payment and payment history.

It can be tough but all in all you are the only one ultimately responsible for your payments .

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I agree with SK.

The companies can't let everyone be late on their payments.

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Chances are, by the time they got your payment and processed it, it was beyond the 30 day window. In regards to the late payments being reported to the agencies, across the board, it has to exceed that 30 day window. If it's 24 hours past, it's late. Additionally, their lending platform is set up "as most all others are too" where the computer will record the day the payment is entered, against the day it was due. If it was beyond the 30 day window, it will automatically make note of it on a seperate report that gets emailed to the agencies. Everything is so automated. The rating agencies impose on most companies that if they want to pull their data, they've got to contribute to it as well, on their terms "the automated reporting platform".

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And the fact that the other creditors haven't reported might not mean anything. Some creditors just never report...some are VERY slow. So unfortunately in the months ahead you may see more lates hit your reports. I would watch them very closely.

Also be VERY sure that it was actually more than 30 days late. In the current climate one late payment might send your other creditors, mainly your credit card issuers, into a panic and they may cut your credit lines or close accounts in fear that this late payment is a sign of financial distress. This will be more likely if the other stuff shows up eventually as well.

Your credit card companies are likely reviewing your credit on a quarterly basis just waiting for something like this to happen, especially if you spend a lot on a montly basis or carry balances. They are all in "minimize exposure to default" mode.

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