Credit Cards

RBC adding deferral on credit report without request

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  • Sep 16th, 2020 7:18 pm
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Deal Guru
Dec 5, 2006
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mikeymike1 wrote: 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.
Make sense

But even it's unchecked(no payment), it won't impact bureau score since borrower is not supposed to pay( deferred), is this how bureau is doing? Just try to understand what they meant "neutralize "
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Apr 16, 2007
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smartie wrote: Make sense

But even it's unchecked(no payment), it won't impact bureau score since borrower is not supposed to pay( deferred), is this how bureau is doing? Just try to understand what they meant "neutralize "
It's really important to note that a payment made is a payment made in regards to credit bureau scoring. Irregardless of how it's made, the date, how much or how little. If you make a payment during a reporting cycle then we send in the report that checked yes payment was made.
If you have an auto loan with us, you change POP banks and don't notify us and the payment comes back, we report with a no-payment-made. All means to collect the missed auto loan payment is between the bank and debtor, this has nothing to do with the credit bureaus. Bureau update will be sent after payment received (if received during same cycle)
Same policy and procedure for any bounced/NSF cheques for any account payments.
With all that said, deferrals are nothing more than an account payment agreement. But if no payment was made during a cycle we have to report that there was no payment made period.
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Aug 24, 2016
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mikeymike1 wrote: With all that said, deferrals are nothing more than an account payment agreement. But if no payment was made during a cycle we have to report that there was no payment made period.
Right, but there’s a difference with no payment made on a deferred account.
The difference is no payment was made, because no payment was due (due to the arrangement).
So this should not negatively affect the score.
It wouldn’t make sense to.
It should be the same kind of reporting on an account that has had no activity for the current cycle.
No payment was made on the account, because a payment was not due (due to being $0 balance).
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Apr 16, 2007
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coolintheshade wrote: Right, but there’s a difference with no payment made on a deferred account.
The difference is no payment was made, because no payment was due (due to the arrangement).
So this should not negatively affect the score.

It wouldn’t make sense to.
It should be the same kind of reporting on an account that has had no activity.
No payment was made on the account, because a payment was not due (due to being $0 balance).
No not quite the same.
A credit card tucked in your drawer has no payment activity because you don't use it thus no payment is required to be made on it month after month.

Read what I wrote above where I said each credit product has a max of 12 payments that can be reported on that specific credit product.
Now go search what metrics make up your overall credit score profile. 35% is based on payment performances. These payments are reported by the lenders you are currently using.
If you defer a CC payment for 3 months then there's 3 months of no-payments reported on that specific credit card.
Again, credit scoring is highly weighted on the payment performances of each credit product.
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Deal Guru
Dec 5, 2006
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mikeymike1 wrote: No not quite the same.
A credit card tucked in your drawer has no payment activity because you don't use it thus no payment is required to be made on it month after month.

Read what I wrote above where I said each credit product has a max of 12 payments that can be reported on that specific credit product.
Now go search what metrics make up your overall credit score profile. 35% is based on payment performances. These payments are reported by the lenders you are currently using.
If you defer a CC payment for 3 months then there's 3 months of no-payments reported on that specific credit card.
Again, credit scoring is highly weighted on the payment performances of each credit product.
If you are not supposed to pay , so lender reports you didn't pay, what's the issue here?( negative to score)

Like if I bought a furniture from leon and they told me I don't have to pay until march 2021, will this negatively impact my score?
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Apr 16, 2007
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smartie wrote: If you are not supposed to pay , so lender reports you didn't pay, what's the issue here?( negative to score)

Like if I bought a furniture from leon and they told me I don't have to pay until march 2021, will this negatively impact my score?
No because that is not a revolving credit account.
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mikeymike1 wrote: No because that is not a revolving credit account.
But still you need pay and they still report to bureau without payment check( I meant instalment also is included in the bureau

Equifax specifically said "In other words, deferred payments should not harm the borrowers' credit scores. We are working closely with lenders to help them meet the reporting specifications. "

https://www.consumer.equifax.ca/persona ... it-scores/
Last edited by smartie on Jul 29th, 2020 5:04 pm, edited 1 time in total.
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Aug 24, 2016
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mikeymike1 wrote: Again, credit scoring is highly weighted on the payment performances of each credit product.
I get that, and I’m well aware of the factors of a credit score.
What I’m not understanding is how a credit product can have a negative effect on ones credit score, that has no payment due, due to a payment deferral.
Other than not getting payment performance brownie points, there should be no direct negative impact.
The people asking these questions seem to think their life is over, and they’ll never be able to obtain credit ever again, because they lost a whole 7 points from their credit score, due to this narrative change.
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coolintheshade wrote: I get that, and I’m well aware of the factors of a credit score.
What I’m not understanding is how a credit product can have a negative effect on ones credit score, that has no payment due, due to a payment deferral.
Other than not getting payment performance brownie points, there should be no direct negative impact.
The people asking these questions seem to think their life is over, and they’ll never be able to obtain credit ever again, because they lost a whole 7 points from their credit score, due to this narrative change.
I lost 1 point and can't sleep now lol

But I think one thing lenders can do is to look at your bureau files and check whether you have deferred trade, so your score might be same or even better, but lenders know you have financial issues and decline your application

Just my guess
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Apr 16, 2007
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coolintheshade wrote: I get that, and I’m well aware of the factors of a credit score.
What I’m not understanding is how a credit product can have a negative effect on ones credit score, that has no payment due, due to a payment deferral.
Other than not getting payment performance brownie points, there should be no direct negative impact.
The people asking these questions seem to think their life is over, and they’ll never be able to obtain credit ever again, because they lost a whole 7 points from their credit score, due to this narrative change.
The main directive during this covid pandemic is to not report deferrals as R2, R3, R4, I2, I3, I4 etc, which refer to delinquent/derogatory account status.
A non payment made/report on a tradeline account has no associated reason code.
It's important to separate the code reporting functions between what the lender retains and what metrics must be reported.

Example: if your current balance is $3200 and you defer 3 months of payments the balance stays at $3200 and your utilization ratio stays exactly where it is and was from 3 months ago. Your date of last activity will also show as March as you deferred, April, May and June.

I'll say this again, a payment not made during a reporting cycle is a payment not made.
While we are not supposed to report deferrals as delinquent accounts we can't report that you made a payment on an account when you really did not.

smartie wrote: I lost 1 point and can't sleep now lol
Yes the sum of all this can equal just that.
Marginal applicants are most likely the ones that need and/or will take advantage of deferral agreements anyways.
Any scoring fluctuations will affect them the most.
Last edited by mikeymike1 on Jul 29th, 2020 7:50 pm, edited 1 time in total.
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Aug 24, 2016
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smartie wrote: But I think one thing lenders can do is to look at your bureau files and check whether you have deferred trade, so your score might be same or even better, but lenders know you have financial issues and decline your application

Just my guess
True, lenders can see a deferred trade, but deferred does not mean financial issues.
Actually many car dealers are offering no payments for 6 months on new car purchases right now.
That loan if you were to get it, would more than likely be reported the same way, as deferred, until the 6 months expires.
Other lenders offer deferred credit products as well, for many years, many of which I’ve had over the years.
Taking advantage of any of these payment deferral credit products does not mean you have financial issues.
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Oct 17, 2004
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I just checked TUNION and see a deferred for a card and I never requested any deferral.
What are people doing to get this corrected?

Or is the consensus to just ignore this and it goes away on its own. For those that ignored it and didn't call in, how long did it take to drop off?
I'm too poor to buy crap
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Dec 5, 2006
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mk316 wrote: I just checked TUNION and see a deferred for a card and I never requested any deferral.
What are people doing to get this corrected?

Or is the consensus to just ignore this and it goes away on its own. For those that ignored it and didn't call in, how long did it take to drop off?
It won't impact negatively on your score

But are you sure it will go away? I think it's better ask them to remove it
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Oct 17, 2004
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smartie wrote: It won't impact negatively on your score

But are you sure it will go away? I think it's better ask them to remove it
Okay, got an agent just now... Can't understand the reason for the confusion on their end...

They are blaming Transunion for this and want me to send them a detailed credit report and outline the problem via a FAX or mailed letter to the RBC Collections department!
Wow, what a messed up process especially since account is all paid up and never asked for any deferral. Not a happy camper right now.
I'm too poor to buy crap
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Aug 22, 2011
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mk316 wrote: Okay, got an agent just now... Can't understand the reason for the confusion on their end...

They are blaming Transunion for this and want me to send them a detailed credit report and outline the problem via a FAX or mailed letter to the RBC Collections department!
Wow, what a messed up process especially since account is all paid up and never asked for any deferral. Not a happy camper right now.
Can you take a snapshot on how it shows up on your TU report?
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vkizzle wrote: Can you take a snapshot on how it shows up on your TU report?
It just shows the below.
Frequency of Payment [Deferred]

Why do you need my TU Report?
I'm too poor to buy crap
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mk316 wrote: It just shows the below.
Frequency of Payment [Deferred]

Why do you need my TU Report?
I didn't ask to see your whole report, just that one tradeline.
I also have an RBC CC and didn't see a deferral on my report.
Deal Addict
Jan 16, 2016
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RBC did this to my Avion VI card which is the most recent one I’ve opened in my portfolio of RBC cards.
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Altera wrote: RBC did this to my Avion VI card which is the most recent one I’ve opened in my portfolio of RBC cards.
Dis you do anything about this or is it ignorable?
I'm too poor to buy crap
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Jan 16, 2016
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mk316 wrote: Dis you do anything about this or is it ignorable?
I want to do something about it but I don’t know what to do, as it seems others in this thread have only wasted their time and there’s no solution just yet.

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