Data Processing Error Drops Local Bank Customers' Credit Ratings
Bank stresses that credit scores should be normal again by Friday
BAR HARBOR—Erroneous reports to TransUnion have adversely impacted the credit conditions for multiple retail loan customers of Machias Savings Bank. The problem is isolated to just Machias Savings Bank.
In an email Tuesday morning, the senior leadership team wrote, “TransUnion has posted a credit bureau reporting file that is causing adverse credit conditions for some of our consumer loan customers.”
The bank worked with TransUnion to resolve the issue, Tuesday, and as of late Tuesday afternoon, the institutions had a fix according to Machias Savings Bank Chief Strategy Officer Charlene Cates.
“A corrected data file was submitted to TransUnion just before 3:00 p.m. today from the bank’s core provider, Jack Henry,” Cates said, Tuesday afternoon. “Once the information is received and populated, the credit bureaus will adjust consumer credit scores to reflect accurate credit history. This process can take time. We expect many customers to be able to see their scores adjusted by TransUnion on Thursday, but all customers should see their corrected credit score by close of business on Friday, January 24.”
“Leadership of Machias Savings Bank became aware of the situation on Sunday, January 19,” Cates said. “The bank assembled a core team to investigate the issue immediately. Customer service teams began responding to customers on Sunday and Monday with reports of decreased credit scores.”
Cates further explained that “a credit reporting data file was sent from our core banking provider, Jack Henry, to TransUnion Credit Bureau inaccurately marking present and past loans as charged off and or delinquent, causing credit scores to decline. Nothing malicious or cyber security related caused this problem, it was simply a data processing error. “
According to the bank’s leadership team, the issue couldn’t be fixed by individuals.
“This is the bank’s number one priority and has been since we were made aware of the issue,” Cates said. “Customer Service teams jumped into action and our President and CEO Larry Barker joined them in communication efforts. Loan officers have been responding to impacted customers to address the most pressing and immediate concerns, as well as providing education and support around the issue. The bank anticipates that customer credit scores will start reflecting the accurate loan information by Friday without the customer having to do anything to address the issue.”
Machias Savings has taken additional steps to ensure that such an issue does not occur in the future, Cates said. The bank’s technical teams have implemented additional safeguards and enhanced its monitoring processes to prevent recurrence.
“We will continue to work with our customers to ensure that all information reported to the credit bureaus is accurate,” Cates said.
One local man said that his credit score dropped from over 800 to below 600. Another woman said hers dropped by approximately 160 points.
A credit score is a number meant to represent the risk or “worthiness” of someone trying to take out a loan or a mortgage, so basically to get credit on a purchase. A score of mid-to-high 600s is usually thought of as a good score. The higher the score, the better.
“We understand how important your credit standing is and want you to know we are working with our core processor and the credit bureaus to correct any inaccuracies and ensure that your credit report reflects accurate data. We are committed to resolving this issue as quickly as possible and will keep you informed. We apologize for any inconvenience this may cause while we work toward resolution,” an email sent to bank customers from the bank’s senior leadership team said.
This October, the Maine-based bank was named one of Maine’s top employers, its 17th year that Machias Savings Bank has been included in the Best Places to Work in Maine rankings. It’s been in the top five for large employers (250+ employees) since 2016, when it first moved to that category.
The bank has almost $2.3 billion in assets, 15 branches, and 300 employees. It was founded in 1869.
Earlier in January the bank announced the recipients of its 2024 Workforce Development Grant program. The program is meant to expand Maine’s workforce. It awarded a total of $50,000 to Jobs for Maine’s Graduates, Junior Achievement, and Camp Susan Curtis.
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Worried about the impact on my other lines of credit now that it’s caused me to lose 150 points.