Product: Mortgage

Dear Selene Finance, This letter is a formal response to Selene Finance 's reply regarding my claim that was sent on XX/XX/XXXX XXXX, through CFPB Claim XXXX. The claim addresses the inaccurate reporting of my mortgage loan term. Despite your claim that you have submitted the necessary information to the credit bureaus to correct this issue, it has been over 51 days from the date this claim was sent, and the issue remains unresolved. 
The inaccurate reporting of a XXXX ( XXXX ) year term instead of a XXXX  ( XXXX ) year term has significantly impacted my credit report in the following ways : 1. Creditworthiness Perception : A longer loan term can be perceived as a higher risk by lenders, potentially affecting my ability to obtain new credit or loans.

2. Interest Accumulation : A longer loan term generally means more interest will accumulate over time, making it seem like I have a higher overall debt burden, which can negatively impact my credit score.

3. Debt-to-Income Ratio : The incorrect term affects my debt-to-income ratio calculations, which lenders use to determine my ability to manage monthly payments and repay debts. A higher ratio can make me look less creditworthy.

4. Payment History : The incorrect term might also affect how my payment history is reported, potentially leading to inaccuracies in reporting whether payments are made on time.

5. Loan Amortization : The amortization schedule for a XXXX ( XXXX ) year loan is different from a XXXX ( XXXX ) year loan, leading to discrepancies in how much of my payments are reported as going towards principal versus interest. 
6. Future Loan Applications : When applying for new credit, lenders will review my credit report. An incorrect loan term might raise questions or concerns, potentially leading to higher interest rates or even denial of credit. 
Additionally, this inaccurate reporting violates the terms of my loan modification agreement. The agreement clearly states that the loan term was modified to XXXX ( XXXX ) years, effective XX/XX/XXXX. The failure to update the term duration on my credit report is a breach of this agreement. 
Furthermore, on XX/XX/XXXX XXXX, this inaccurate XXXX loan term was also disputed with the credit bureau, but Selene Finance confirmed to the bureau that it was accurate. This continued misrepresentation of my loan term is unacceptable and has compounded the negative impact on my credit report. 
The following laws have been violated due to this inaccurate reporting : 1. Fair Credit Reporting Act ( FCRA ) : Under 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ), furnishers of information to consumer reporting agencies must not furnish information relating to a consumer to any consumer reporting agency if the furnisher knows or has reasonable cause to believe that the information is inaccurate. Additionally, under 15 U.S.C. 1681i ( a ) ( 1 ) ( A ), credit reporting agencies must correct or delete any inaccurate, incomplete, or unverifiable information within 30 days of receiving notice of a dispute. This was not done by Selene, despite your admission of the inaccurate reporting. 
2. Real Estate Settlement Procedures Act ( RESPA ) : Under 12 U.S.C. 2605 ( e ) ( 3 ), mortgage servicers are required to provide accurate and timely information to borrowers.

The failure to update the term duration on my credit report violates this requirement.

3. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) : Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, it is unlawful for any provider of consumer financial products or services to engage in any unfair, deceptive, or abusive act or practice.

Damages Sought Due to the inaccurate reporting and its significant impact on my credit report, I am seeking the following damages : 1. Credit Damage : The incorrect reporting has negatively affected my credit score and creditworthiness, leading to denial of credit and higher interest rates on potential loans. 
XXXX. Emotional Distress : The ongoing issue has caused significant stress and XXXX, leading to a deep XXXX and affecting my mental health and overall well-being. 
XXXX. Financial Loss : The inability to obtain necessary credit has hindered my ability to secure financial resources, affecting my livelihood and financial stability. 
The failure to resolve this issue promptly has had a severe impact on my life. It has caused substantial emotional distress, hindered my financial opportunities, and posed a threat to my ability to manage daily responsibilities and maintain a stable quality of life. I expect Selene Finance to take immediate corrective actions to address this issue and compensate for the damages caused. 
As a result of the damages caused by this inaccurate reporting and the breach of the loan modification contract, I am filing a small claim against Selene Finance. I request that Selene Finance take immediate action to correct the term duration of my mortgage loan to accurately reflect the XXXX  ( XXXX ) year term. Additionally, I request that Selene remove the reporting of any late payments from my credit report due to the damage caused by this issue. I also request confirmation that the necessary corrections have been made and that my credit report has been updated accordingly.

Furthermore, I request that Selene Finance cease and desist from reporting any inaccurate information in my name under my social security number, such as fraudulent or inaccurate loan terms or any other inaccurate inconsistencies.

Affidavit I hereby affirm that the information provided in this complaint is accurate and truthful to the best of my knowledge. I have provided all the necessary documentation and none of the exceptions for rejecting my dispute apply. This information, and any information Selene provides, will be used in the court of law to prove my case. Selene must respond to this claim within 30 days of the above date, on or before XX/XX/XXXX XXXX. Failure to do so will result in legal action being pursued. 
Thank you for your prompt attention to this matter. I look forward to your response and the resolution of this issue. 
Sincerely, XXXX XXXX -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- - Subject : Final Warning : Intent to Sue- Formal Complaint Regarding Inaccurate Loan Balance Reporting and Violation of Credit Reporting Laws Dear Selene Finance, I am writing to address the inaccurate reporting of my loan balance. Despite my previous communications, your response did not fully address my concern regarding the application of a {$2900.00} payment made on XX/XX/XXXX. 
Explain How the Loan Could Be Past Due from XX/XX/XXXX : Your response explained where the {$2900.00} payment was applied but did not address my specific concern. The statement shows that on XX/XX/XXXX, {$1300.00} was applied to the past due for XX/XX/XXXX, and {$1300.00} was applied to a past due balance for the due date XX/XX/XXXX, with {$170.00} unapplied. Your response did not explain how the loan could be past due from XX/XX/XXXX, when a payment was applied to that date. Shouldn't the loan be past due from XX/XX/XXXX, given that a payment was applied to cover XX/XX/XXXX? The point I'm making is that when the loan transferred to Selene, you claimed I owed from XX/XX/XXXX, meaning an extra payment was added, and the loan should not be 14 months past due but instead should be 13 months past due due to a payment already applied to cover XXXX. 
This means an extra {$1300.00} was added to the balance Selene claimed I owed. 
Furthermore, the XX/XX/XXXX payment of {$1300.00} should not be included in the amount that you claimed I owed at the time, which was {$19000.00}. Based on the information provided in my complaint, this payment was applied to cover the due date for XX/XX/XXXX and was not reversed. Therefore, it should not have been included in the outstanding balance, as it would have made the loan past due from XX/XX/XXXX, not XX/XX/XXXX. This means the loan is past due for 13 months, not 14 months. Selene Finance must explain why XX/XX/XXXX was included in the XXXX past due balance if the payment was already applied to that month, and why the XX/XX/XXXX payment of {$1300.00} was included in the {$19000.00} balance owed if the payment was already applied to XX/XX/XXXX. Your previous response confirms that the {$1300.00} went towards the XX/XX/XXXX installment and did not get returned. 
Violation of the Real Estate Settlement Procedures Act ( RESPA ) : Selene Finance 's actions also violate the Real Estate Settlement Procedures Act ( RESPA ), specifically Regulation X, Section 1024.34, which addresses the proper handling of escrow payments and the treatment of escrow account balances. This section requires servicers to manage escrow payments properly and prohibits them from netting remaining funds in an escrow account against the outstanding balance of the borrower 's mortgage loan without proper justification. 
By adding the extra payment of {$1300.00} to my loan balance, you have failed to manage the payments properly and have included an already applied payment in the outstanding balance, violating RESPA 's requirements. This mismanagement has led to an inflated loan balance and incorrect reporting on my credit report. 
Unfair Increase in Interest Rate : Like explained in previous claims, due to the inaccurate reporting and failure to investigate, I was forced into a loan modification that increased my interest rate from 3.75 % to 8 %, resulting in a {$970.00} increase in my monthly mortgage payment. If this issue was investigated properly, I could have afforded to pay off the balance of {$18000.00}, which should have been the true balance, which is the {$19000.00} balance minus the extra {$1300.00} that was added to the balance for XX/XX/XXXX. I just could not afford the extra {$1300.00} that they added to the XX/XX/XXXX balance they stated I owed at the time to prevent a loan modification that caused my interest rate to increase from 3.75 % to 8 %, resulting in a {$970.00} increase in my mortgage. This constitutes an unfair and deceptive practice under the Dodd-Frank Wall Street Reform and Consumer Protection Act, 12 U.S.C. 5531.

Final Warning : I need Selene to stop ignoring the details and the point I am making in my claim. I know you understand my point but are refusing to admit that there was an error to protect yourselves. This is my final warning to Selene Finance : if this issue is not resolved, and the extra {$1300.00} is not refunded back to me due to Selene still including the XXXX payment in the balance you claimed I owed, even though it was already paid to cover that month, this issue will be explained in court. Selene Finance has 30 days from the above date, XX/XX/XXXX. If you fail to meet the deadline on or before XX/XX/XXXX, I will have no choice but to escalate this matter. I have already filed a claim with the Attorney General, the Department of Housing and Urban Development ( HUD ), the Federal Trade Commission ( FTC ), and the State Consumer Protection Office, and seek legal action. Additionally, I have submitted my complaint and Selene Finance 's response to the local police station for review. A police report will be filed against Selene Finance for reporting an inaccurate loan balance and inaccurate fraudulent loan terms that Selene Finance is fully aware of and admitted to reporting. This police report will be used as evidence in court. 
Requested Action : 1. Investigate : Conduct a thorough investigation into the application of the {$2900.00} payment made on XX/XX/XXXX. 
2. Explain : Provide a clear explanation of how the loan could be past due from XX/XX/XXXX, when a payment was applied to that date. The loan should be considered past due from XX/XX/XXXX, given that the payment covered the XX/XX/XXXX installment. 
XXXX. Correct : Adjust the inaccurate reporting of my loan balance accordingly and provide written confirmation of the corrections made to my account. 
Damages Sought : Due to the inaccurate reporting and its significant impact on my credit report, I am seeking the following damages : 1. Credit Damage : The incorrect reporting has negatively affected my credit score and creditworthiness, leading to denial of credit and higher interest rates on potential loans. 
2. Emotional Distress : The ongoing issue has caused significant stress and XXXX, leading to a deep XXXX and affecting my mental health and overall well-being. 
XXXX. Financial Loss : The inability to obtain necessary credit has hindered my ability to secure financial resources, affecting my livelihood and financial stability. 
The failure to resolve this issue promptly has had a severe impact on my life. It has caused substantial emotional distress, hindered my financial opportunities, and posed a threat to my ability to manage daily responsibilities and maintain a stable quality of life. I expect Selene Finance to take immediate corrective actions to address this issue and compensate for the damages caused. 
As a result of the damages caused by this inaccurate reporting and the breach of the loan modification contract, I am filing a small claim against Selene Finance. Furthermore, I request that Selene Finance cease and desist from reporting any inaccurate information in my name under my social security number, such as fraudulent or inaccurate loan terms or inaccurate loan balance, or any other inaccurate inconsistencies. 
Please consider this letter as a formal complaint and a request for resolution. I have already filed complaints with the Attorney General, the Department of Housing and Urban Development ( HUD ), the Federal Trade Commission ( FTC ), and the State Consumer Protection Office, and seek legal action. 
Thank you for your prompt attention to this matter. I look forward to your response and the resolution of this issue