In 2008 I purchased a home and obtained a mortgage through a local bank, thinking this would boost my credit score since this was my first significant loan. Only to find out months later when I checked my credit that my mortgage payments were not reflected on my report. When I contacted the bank to find out why, they stated that they do not report to credit agencies unless of course it is a bad debt. Recently talked to the bank again to obtain payment history so that I can send it to the credit agencies myself and they mentioned that they would begin reporting in the next few months. Is this legal that they are not reporting this information?
Except in cases of bankruptcy or pursuant to agreement, there is no legal requirement that a creditor report positive or negative credit information to the credit bureaus.
The short answer is "Yes" it is legal to not report. There is no obligation to report to the credit reporting agencies.
It is unusual but some local banks still don't report.
You are doing the right thing by talking to them - I would continue to ask them to please report this account (assuming you are current) and in the meantime the payment history might be helpful. The credit reporting agencies don't have to do anything with the payment history you send but it won't hurt.
I hope this will all work out for you very soon!
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