Residential Credit Solutions violating the law

Welcome to the LoanSafe Forums!
Get free mortgage help today. Since 2007, the LoanSafe forums have helped millions of homeowners over the last 13 years either save their homes with a loan modification, obtain a short sale, forbearance, or walk away legally from their underwater mortgages.
Register for FREE

onwards

LoanSafe Member
Feb 3, 2010
56
0
6
All,

My mortgage was discharged in 2009, and I elected to "retain and pay", but did not reaffirm.

The loan was sold and resold multiple times, until eventually it ended up a few months ago with a company called Residential Credit Solutions.

These a-holes have started reporting the loan to the credit agencies.

I have called them and asked that they stop and reverse the report, since I don't owe this debt anymore. They are refusing to do anything about it.

What can I do?
 

TomEason

LoanSafe Guide
Jun 18, 2009
12,390
85
48
SF Bay Area CA
onwards

Thanks for your post.

Since the loan was discharged in your BK, RCS is violating federal law by reporting the debt to the CRAs.

I recommend you write a letter to RCS citing the law, telling them they're in violation, and demanding they have the derog removed.

And if they don't, you intend to both sue them civilly and report them to the governing authority.
 

onwards

LoanSafe Member
Feb 3, 2010
56
0
6
onwards

Thanks for your post.

Since the loan was discharged in your BK, RCS is violating federal law by reporting the debt to the CRAs.

I recommend you write a letter to RCS citing the law, telling them they're in violation, and demanding they have the derog removed.

And if they don't, you intend to both sue them civilly and report them to the governing authority.
It's not a derog since payments are being made regularly, but what it IS doing is suggesting that I am carrying mortgage debt, which I am not (thanks to the discharge). That, in turn, is making it impossible for me to buy a new house, which I have just recently started looking into because my girlfriend and I want to take the next step together (guess how I found out about this crap?)

Anyhow, letter written and sent. I am quoting the text below, appreciate any feedback on the language.

Also reported to the CFPB.

They better fix this pronto.

===Letter follows===

[...]

Subject: Demand for immediate correction of illegal credit reporting


Dear sirs,


To follow up on my multiple calls with your customer service dept, the loan for the property address which are both referenced above was discharged in a chapter 7 bankruptcy in 2009.


You have acquired this loan and subsequently started reporting its status to the credit bureaus,violating federal law.


Please suppress such credit reporting effective immediately, and further correct all prior reporting so that no entries appear in the credit report with regards to this loan at all. This debt is no longer owed as a result of the prior discharge in 2009, and as you have yourself acknowledged to me over the phone and in a letter dated 1/14/14.


I have already reported your violation of federal law to the Consumer Financial Protection Bureau (CFPB),and intend to pursue all avenues possible under the law to obtain relief from your illegal actions. If you do not take corrective action immediately, you will be subject to a civil lawsuit.


Please confirm your immediate action by letter to my address above. Feel free to contact me at [contact info] with any questions.


[...]
 

onwards

LoanSafe Member
Feb 3, 2010
56
0
6
Just to close the loop: I eventually got the CFSB involved, and when THEY called RCS to inquire politely about my complaint, magically RCS fixed the problem within 2 weeks.

I like the CFSB :)

Also, we bought our new house - it closed on 12/23. How exciting!