CFPB Complaint

Ditech Financial LLC – CFPB Complaint 2018-06-04

Consumer Complaint Submission

Date Received: 2018-06-04

Product: Mortgage debt

Issue: Took or threatened to take negative or legal action

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: Our Mortgage Loan was Originally made with XXXX XXXX XXXX XXXX. We understood this to be a ” Fixed Loan ” and not a Variable. We feel we have been treated very unfairly not only by Ditech Financial LLC ( whom we do NOT have any signed Loan Documents or Contract ‘s with ; but by their Attorney, XXXX XXXX XXXX XXXX of XXXX, XXXX , & XXXX, XXXX.

the letter see received, saw on XX/XX/XXXX from XXXX XXXX XXXX XXXX of XXXX, XXXX , & XXXX XXXX dated XX/XX/XXXX states : Pursuant to 15 USC 1692g. you are given the following notice : Ditech Financial LLC by and through its servicer, Ditech Financial LLC is the creditor to whom the debt is owed.

1. Ditech is not the Creditor.

The Creditor on the Mortgage Loan is XXXX XXXX XXXX XXXX and they are no longer involved in any Mortgage transaction involving our original Loan Agreement.

According to FDCPA Definition of a Creditor ( 4 ) ; 1692a. Definitions ( 4 ) The term ” creditor ” means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

Ditech did not offer or extend credit creating a debt. Consumer had no offer to accept. And there was no performance as a Creditor as Ditech did not offer or extend credit to create a debt.

In my reply to the Attorney dated XX/XX/XXXX, I asked for proof of our Signatures showing a Contract or Agreement we had with Ditech Financial LLC.

The Lawyer responded with with unofficial copies of the original Mortgage with XXXX XXXX XXXX, and no documentation of proof we have any Creditor/Consumer agreement with Ditech Financial Services, LLC. as I requested they send me! This letter we also did not receive or see untilXX/XX/XXXX, dated XX/XX/XXXX.

1692i. Legal actions by debt collectors ( a ) Venue Any debt collector who brings any legal action on a debt against any consumer shall ( 3 ) in the case of an action to enforce an interest in real property securing the consumer ‘s obligation, bring such action only in a judicial district or similar legal entity in which such real property is located ; or ( 4 ) in the case of an action not described in paragraph ( 1 ), bring such action only in the judicial district or similar legal entity ( A ) in which such consumer signed the contract sued upon ; or ( B ) in which such consumer resides at the commencement of the action.

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( b ) Authorization of actions Nothing in this subchapter shall be construed to authorize the bringing of legal actions by debt collectors. ( Pub. L. 90321, title VIII, 811, as added Pub. L. 95109, XX/XX/XXXX, 91 Stat. 880. ) EFFECTIVE DATE Section effective upon the expiration of six months after XX/XX/XXXX, see section 819 of Pub. L. 90321, as added by Pub. L. 95109, set out as a note under section 1692 of this title.

2. Referring again to the Letter we received, saw on XX/XX/XXXX from XXXX XXXX. XXXX XXXX of XXXX, XXXX , & XXXX, XXXX dated XX/XX/XXXX states : Pursuant to 15 USC 1692g. you are given the following notice : Ditech Financial LLC by and through its servicer, Ditech Financial, LLC is the creditor to whom the debt is owed.

However, according to the first paragraph in very first Letter we received from XXXX XXXX XXXX XXXX/Ditech Financial, LLC dated XX/XX/XXXX states that ;… The servicing of your mortgage loan- that is, the right to collect loan payments from you is being transferred from XXXX to Green Tree effective XX/XX/XXXX. The servicing does not affect any terms or condition of your current mortgage loan, other than the terms directly related to the Servicing of your loan…

3. Every statement or document, including but not limited to Loan Modification Offers etc., we received from XXXX XXXX XXXX XXXX./Ditech Financial, LLC . always made the Statement and Reference they are a Debt Collector.

The FDCPAs definition of a Debt Collector which I believe to also logically include the Term Servicer is ; 1692a. Definitions ( 6 ) The term ” debt collector ” means any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another.

4. How can Ditech Financial LLC be both the Creditor and a Debt Collector/Servicer?

Attorney letter dated XX/XX/XXXX # 2 Ditech Financial LLC by and through its servicer, Ditech Financial LLC is the Creditor to whom the debt is owed.

5. How can a Servicer or Debt Collector Foreclose on a Home?

As I was reading through the Fair Debt Collections Act I found these regarding False or Misleading Representations ( 2 ), & Furnishing Certain Deceptive Forms ; 1692e. False or misleading representations.

A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section : ( 1 ) The false representation or implication that the debt collector is vouched for, bonded by, or affiliated with the United States or any State, including the use of any badge, uniform, or facsimile thereof.

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( 2 ) The false representation of ( A ) the character, amount, or legal status of any debt ; ( stating Ditech Financial LLC is the Creditor ) 1692j. Furnishing certain deceptive forms ( a ) It is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other than the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when in fact such person is not so participating.

( b ) Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 1692k of this title for failure to comply with a provision of this subchapter.

( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XX/XX/XXXX, XXXX XXXX XXXX We believe he statement by Ditech Financial LLCs Attorney, XXXX XXXX XXXX XXXX. in his first Communication, Pursuant to 15 USC 1692g. you are given the following notice : Ditech Financial LLC by and through its servicer, Ditech Financial LLC is the creditor to whom the debt is owed.

As well XXXX XXXX XXXX XXXX submitting and filing a Notice of Default and the beginning Foreclosure Proceedings would be considered, Furnishing Certain Deceptive Forms which is a violation of the FDCPA Law, as they attempting to create the false belief to us that Ditech Financial LLC is the Creditor are not, when they clearly by their own statement on every mailing, statement, we have received state, ” This is from a Debt Collector. ”

Company: Ditech Financial LLC

State/Zip: UT 847XX

Company Response to Complaint: Closed with explanation

Was Company Response Timely: Yes

Did Consumer Dispute Company Response: N/A

Complaint ID: 2926364

The above data is from the Consumer Financial Protection Bureau. Keep in mind that every company will get a complaint from time-to-time, even the great ones. But there are a few key data points that will give you an idea about how well the company values their customers and handles consumer issues.

Look at the item Company Response to Complaint: and Did Consumer Dispute Company Response: to get a better idea of how this was resolved. And the field Consumer Complaint: can give you some context of the issue.

In particular what you are looking for was that the company response was timely and that the consumer did not dispute it. The posting of complaints has proven to be a valuable resource for both companies and consumers.




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