Ch 4 K4 Segment Overview

The video provides an overview of the K4 Segment from Chapter 4 of the Metro 2 Credit Reporting Resource Guide, guiding readers on using Metro 2 to accurately read credit reports, identify errors, and draft dispute letters to consumer reporting agencies (CRAs). The K4 Segment reports specialized payment information for any loan type, focusing on deferred or balloon payments, including principal forbearance. It must be included each time the account is reported if such payments apply. For accounts with both, the deferred payment start date is reported during deferment, switching to the balloon payment due date and amount during repayment. Only one balloon payment can be reported at a time due to the single K4 Segment limit per Base Segment, updating to the next due balloon after one is paid.

This ensures specialized payment terms are tracked; errors like missing K4 data for a deferred loan, reporting multiple balloon payments simultaneously, or incorrect dates/amounts can be disputed as violations of Metro 2’s standard, offering a basis for dispute letters to CRAs to enforce accurate reporting.