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RBC adding deferral on credit report without request

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  • Sep 16th, 2020 7:18 pm
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[OP]
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Oct 27, 2003
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RBC adding deferral on credit report without request

Anyone else seeing Royal Bank registering un-requested deferrals on their credit cards?

I just checked my credit report on both Borrowell (Equifax) and RBC CreditView (Transunion) and both show Royal Bank has reported my RBC Westjet Mastercard as deferred.

I did not request a deferral.
I use credit for rewards and convenience, paying off all new charges within days of posting, never carrying a balance.

I've called both Equifax and RBC, both direct me to the other for remedy.

I fear it may impact my credit score.

Any ideas on how best to proceed?
Last edited by Gursk on Jul 27th, 2020 2:05 pm, edited 1 time in total.
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It doesn’t impact your score, and it is a known issue that isn’t a big deal.
[OP]
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coolintheshade wrote: It doesn’t impact your score, and it is a known issue that isn’t a big deal.
Thanks @coolintheshade! Might you be able to point me in the direction of some more details? I've searched around but come up with no other references to this RBC weirdness.
[OP]
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Thanks @coolintheshade question 11 content pasted at the bottom of this post for reference.

Unfortunately, this addresses the consequences of "signing up" for the deferral program.

I did not sign up or otherwise request any deferral.

Therefore, what I am trying to determine is why/when/how the deferral was added without my request, as am very fortunate in not having to defer any payments. At this point it appears my only recourse is to submit a dispute with both Equifax and Transunion.

Have any other RBC credit card holders have found the same unexpected deferral reference on their credit reports?
11. I signed up for my lender’s deferral program and noticed my TransUnion score has dropped. Why?

There could be many reasons your credit score dropped. While many factors influence the impact on a single score, the overall impact of a deferral is neutral on consumer credit-worthiness when reported accurately and in accordance with the industry guidelines.

To check if your account has been deferred, please review a copy of your Consumer Disclosure online at ocs.transunion.ca. If the account in question has been deferred, it should have a “D” in the “Terms” field. If an account you deferred does not show as such, please contact your financial institution.

For more frequently asked questions, including score-related questions and answers, please click here.
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Gursk wrote: ...

At this point it appears my only recourse is to submit a dispute with both Equifax and Transunion.
Why bother - according to the above a deferral notation has no impact.

I have heard others report the same unrequested deferral though.
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Gursk wrote: Thanks @coolintheshade question 11 content pasted at the bottom of this post for reference.

Unfortunately, this addresses the consequences of "signing up" for the deferral program.

I did not sign up or otherwise request any deferral.

Therefore, what I am trying to determine is why/when/how the deferral was added without my request, as am very fortunate in not having to defer any payments. At this point it appears my only recourse is to submit a dispute with both Equifax and Transunion.

Have any other RBC credit card holders have found the same unexpected deferral reference on their credit reports?
Yes, there have been several people reporting "un-requested deferrals" both here on RFD and on Reddit. One person even said that the RBC rep he was speaking with told him that it is a "known" issue.

EDIT: Here are a couple given that you are having a hard time finding them:

royal-bank-avion-card-worst-ever-experi ... #p32850477

royal-bank-avion-card-worst-ever-experi ... #p32851247
[OP]
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Thanks for the links @efrant - much appreciated - I didn't find those in my travels.
Thanks @robsaw , I appreciate the confirmation.
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Canada, eh?
OP, have the same issue. RBC MC shows up as deferred payments even when balance is $0. Only on Equifax, not on TU.

Contacted RBC about this and they say not to worry about it since it doesn't affect credit ratings.

My Equifax report says:
Comments: Deferred payment plan
Affected by natural or declared disaster
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robsaw wrote: Why bother - according to the above a deferral notation has no impact.

I have heard others report the same unrequested deferral though.
+1
I have 3 RBC credit cards, and so far neither of them report as deferred.
And even if they did, or do eventually, I certainly won’t lose sleep over it, as it doesn’t affect me.
FWIW, if you’ve ever financed anything through Desjardins on a do not pay for X amount of months, The Brick, Leons etc... they all report as a deferred account.
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Gursk wrote: Unfortunately, this addresses the consequences of "signing up" for the deferral program.

I did not sign up or otherwise request any deferral.
Whether you signed up for it, or didn’t, the effect is the same.
A deferred narrative doesn’t affect your credit.
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I can confirm same issue happened to me on Avion Infinite I also had my mortgage deferred months before got approved recently for a bigger mortgage after flipping my current property and new phone with plan recently no issues there, RBC rep advised known issue, deferrals didnt impact my score or approval for the new mortgage either.
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Dec 5, 2006
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Defer won't drop your score, but i am wondering whether it also prevents score improvement in certain ways

Such as if this card is your main card and you buy and pay on time.....
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Gursk wrote: Anyone else seeing Royal Bank registering un-requested deferrals on their credit cards?

I just checked my credit report on both Borrowell (Equifax) and RBC CreditView (Transunion) and both show Royal Bank has reported my RBC Westjet Mastercard as deferred.

I did not request a deferral.
I use credit for rewards and convenience, paying off all new charges within days of posting, never carrying a balance.

I've called both Equifax and RBC, both direct me to the other for remedy.

I fear it may impact my credit score.

Any ideas on how best to proceed?
There's a lot of misinformation on this thread from some above posts.
A deferral is a missed payment for that credit product for that reported cycle and yes it can affect your overall credit score.
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mikeymike1 wrote: There's a lot of misinformation on this thread from some above posts.
A deferral is a missed payment for that credit product for that reported cycle and yes it can affect your overall credit score.
Well - no - a deferral is reported as a "Deferred" in payment history, which is neither "Missed/Later" nor "Paid". The lender reporting it properly should also report no "Past Due" amount related to the deferred payment. The impact of a single deferral should be neutral but the credit bureaus are being a bit cagey on what will happen with multiple deferrals.
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robsaw wrote: Well - no - a deferral is reported as a "Deferred" in payment history, which is neither "Missed/Later" nor "Paid". The lender reporting it properly should also report no "Past Due" amount related to the deferred payment.
Nope, absolutely wrong.
Unless you actually know how credit tradeline reporting works at the financial institution level you will not know how the data is really reported on a credit file.

When you make a payment to us there are specific data points we have to check-off/tick-off on your file prior to sending it in to the credit reporting agencies for that reporting cycle.
These data points per cycle on the account are split between us the lender and what is required to be reported to the bureaus.
The checks are, was a payment made (yes check) was payment made before due date (yes check), was payment more than min requirement (yes check), If there were any overdues then there are separate data checks to cover that category.
No checks are adjusted alongside balance adjustments that may reflect on following statement - subject to card holder making additional payments prior to.
The main check that gets reported is was a payment made for this cycle. Answer will be a no-check due to deferral.
A no payment made directly affects that specific tradeline which in turn affects the 35% payment history of credit scoring.
Let me repeat that.... a payment deferral means the reporting of that tradeline will be no payment made for that cycle

Each credit tradeline has a maximum of 12 payments that can be reported per year. One deferral payment reduces it to 11 on that credit product.

Credit file notations stating skipped, missed, paid, 30 days late, 60 days late etc has nothing to do with Equifax or Trans Union. Those notations refer to us the lender and are added there for other credit grantors to access.
If we do not code in the missed no-checks R2 when cycle reporting is due the clients account will still report as R1 and any notes we add on the account will mean nothing.
robsaw wrote: The impact of a single deferral should be neutral but the credit bureaus are being a bit cagey on what will happen with multiple deferrals.
There is nothing cagey about it as Equifax and Trans Union do not perform any tradeline reporting, none, notta, we do.
If you choose to defer 3 months of payments then that account will have 3 cycle months of no payments made on that account as reported by the FI/lender.
No payment made no payment to report on that account - it's that simple.

Deferrals are debtor-creditor agreements and are not subject to R2/R3 code tradeline reporting or 30/60/90 day late notations.
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mikeymike1 wrote: Nope, absolutely wrong.
Unless you actually know how credit tradeline reporting works at the financial institution level you will not know how the data is really reported on a credit file.

When you make a payment to us there are specific data points we have to check-off/tick-off on your file prior to sending it in to the credit reporting agencies for that reporting cycle.
These data points per cycle on the account are split between us the lender and what is required to be reported to the bureaus.
The checks are, was a payment made (yes check) was payment made before due date (yes check), was payment more than min requirement (yes check), If there were any overdues then there are separate data checks to cover that category.
No checks are adjusted alongside balance adjustments that may reflect on following statement - subject to card holder making additional payments prior to.
The main check that gets reported is was a payment made for this cycle. Answer will be a no-check due to deferral.
A no payment made directly affects that specific tradeline which in turn affects the 35% payment history of credit scoring.
Let me repeat that.... a payment deferral means the reporting of that tradeline will be no payment made for that cycle

Each credit tradeline has a maximum of 12 payments that can be reported per year. One deferral payment reduces it to 11 on that credit product.

Credit file notations stating skipped, missed, paid, 30 days late, 60 days late etc has nothing to do with Equifax or Trans Union. Those notations refer to us the lender and are added there for other credit grantors to access.
If we do not code in the missed no-checks R2 when cycle reporting is due the clients account will still report as R1 and any notes we add on the account will mean nothing.


There is nothing cagey about it as Equifax and Trans Union do not perform any tradeline reporting, none, notta, we do.
If you choose to defer 3 months of payments then that account will have 3 cycle months of no payments made on that account as reported by the FI/lender.
No payment made no payment to report on that account - it's that simple.

Deferrals are debtor-creditor agreements and are not subject to R2/R3 code tradeline reporting or 30/60/90 day late notations.
Deferred means no payment for sure. But deferred doesn't get you into past due, Even you didn't pay due to defer ,Right?

Because what you said contradicts with TU's guidelines("the overall impact of a deferral is neutral on consumer credit-worthiness when reported accurately and in accordance with the industry guidelines.")
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smartie wrote: Deferred means no payment for sure. But deferred doesn't get you into past due, Even you didn't pay due to defer ,Right?

Because what you said contradicts with TU's guidelines("the overall impact of a deferral is neutral on consumer credit-worthiness when reported accurately and in accordance with the industry guidelines.")
That's what I was trying to get at - mikeymikey1 seems to imply there is no payment category as "deferred" but Equifax and Transunion both discuss this and note the possible presence of such a payment type on their credit reports. Yes, some contradiction and lack of clarity here. Also, I wasn't implying the credit bureaus were "cagey" about HOW they report data they receive but on what impact "deferred" has on credit score over multiple periods of deferral.
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robsaw wrote: That's what I was trying to get at - mikeymikey1 seems to imply there is no payment category as "deferred" but Equifax and Transunion both discuss this and note the possible presence of such a payment type on their credit reports. Yes, some contradiction and lack of clarity here. Also, I wasn't implying the credit bureaus were "cagey" about HOW they report data they receive but on what impact "deferred" has on credit score over multiple periods of deferral.
It has deferred category

See page 5

https://www.groupecho.com/Download/PDF/ ... ion-en.pdf

I just hope his company won't report deferred as missing payment, those customers would be screwed lol
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smartie wrote: Deferred means no payment for sure. But deferred doesn't get you into past due, Even you didn't pay due to defer ,Right?

Because what you said contradicts with TU's guidelines("the overall impact of a deferral is neutral on consumer credit-worthiness when reported accurately and in accordance with the industry guidelines.")
That is correct - a deferral is an agreement between card holder/borrower and the lender.
The neutral mainly refers to the fact we are not to report it as a missed/late/30 day late, etc derogatory status as what a normal missed payment would normally be.
But as I stated, when you make a payment on your account part of the process of notating that payment performance is embedded in the actual reporting procedure that affects the scoring algorithm. If there's no physical payment made then the report is sent in with an unchecked "payment made" on that tradeline.
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