At what point does your FI report a payment as being late to the credit bureaus? What I've identified is "most" report when the payment is 30 days or more past due.

Here's the situation...payment due on 10/1, grace period of 10 days, customer doesn't make payment until 10/22 due to a software and merger issue at originating bank....customer had set up recurring payments and due to issue in software the payment did not get sent timely. In this scenario the payment was reported as late. Technically he is late...but I feel we could fix his credit report due to it being a software issue. We do have evidence from the originating bank stating what occurred.

I do see the customer should have some ownership in this scenario but what are other FI's doing in situations like this? I've read through our loan policy and there is nothing that speaks to when a payment is reported as late, just that we follow "FCRA".

I assume that you send a monthly submission to the credit bureau. You then are required to use the following codes as of that date:

Metro 2® Status Code 11 - 0-29 days past due date
Metro 2® Status Code 71 - 30-59 days past due date
Metro 2® Status Code 78 - 60-89 days past due date