Consumer complaint received 2020-02-07
Company: LD Holdings Group, LLC
State: TX
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Public record information inaccurate

Complaint:
BEFORE THE CONSUMER FINANCIAL PROTECTION BUREAU OF THE UNITED STATES COMPLAINT XXXX XXXX XXXX A Consumer Plaintiff residing at XXXX XXXX XXXX XXXX, Texas XXXX XXXX. XXXX XXXX XXXX XXXX v. 

LOANDEPOT LLC A Closed End Mortgage Company XXXX XXXX XXXX XXXX XXXX XXXX, CA XXXX Tel. ( XXXX ) XXXX The matters described in this Complaint occurred on or about XX/XX/XXXX through XX/XX/XXXX. 

This Complaint is filed against LoanDepot LLC for violation of the Consumer Financial Protection Bureau ( CFPB ) regulation under 12 CFR Sec. 1014 dealing with Prohibited Representations and 12 CFR Sec. 1003 dealing with the disclosure of false information to adversely effect credit ratings disclosed by credit reporting agencies. 
12 CFR 1014 for Prohibited Representations LoanDepot LLC violates 12 CFR 1014.2 by misrepresenting the use of consumer information to produce false loan applications not requested by consumers. The companys representatives use the telephone to solicit business for closed end mortgage refinancing by misrepresenting the need for consumer information to provide interest rate proposals that are converted into loan applications consumers do not request. The Companys representative falsely pretends to collect consumer information for requested mortgage interest rate proposals, but instead the Company misuses the information to produce loan application the consumer specifically informs the representative s/he does not want, and which loanDepot is told it is not authorized to produce or distribute. 

LoanDepot LLC violates 12 CFR 1014.3 ( h ) ( 2 ) ( j ) by misrepresenting the amount of credit available to the consumer under circumstances where that information is falsely provided in a loan application the consumer did not request and specifically refused. 
Despite that LoanDepot LLC is put on notice by the consumer that a loan application has not been requested or filed, LoanDepot, nevertheless, issued a false Adverse Action Notice, notifying this consumer that the false loan application was denied. Although the notice states that LoanDepot does not report the action to credit reporting agencies and represents that the denial will have no impact on your [ credit [ score, the Notice also states that if the consumer finds any information in the report that is inaccurate or incomplete, the consumer has the right to dispute the matter with the reporting agency, naming Experian, Equifax, and TransUnion. The Notice, however, fails to state how, if the denial is not reported to credit reporting agencies, the consumer can nevertheless dispute the information with the nations major credit reporting agencies. 

LoanDepot LLC violates 12 CFR 1003 of the Home Mortgage Disclosure Regulations Violating disclosure requirement with false loan application. 
LoanDepot LLC violates 12 CFR 1003.1 ( b ) ( c ) by using unsound lending practices that violate the scope of the law in that the financial institution falsely obtains the submission of public data from consumers for unauthorized loan applications, to produce false loan applications not requested or approved by the consumer. 

LoanDepot LLC violates 12 CFR 1003.5 ( c ) ( d ) et seq. by using provisions of the statute to disclose false loan applications in order to penalize consumers for requesting information that does not result in a loan application, thereby adversely impacting consumer credit ratings with credit reporting agencies. When the consumer asks LoanDepot LLC to revoke the notification and to correct and withdraw the Notice to the credit reporting agencies because no loan application was made or requested, LoanDepot LLC refuses, even though the Companys action, in this case, caused as much a fifty-point drop in the consumers credit rating score. The practice has the effect of punishing the consumers for not proceeding with the companys refinancing mortgages services, intentionally using credit reporting agencies as vehicles for enforcing the punishment. The company says it has a recording that the consumer spoke to its representative for 53 minutes, creating an inference that a call of that length supposedly creates an inference that a loan application was requested, whether true or not. 

The conduct of LoanDepot LLC does not constitute a bona fide error in compiling data for loan applications that unintentionally occurred in violation of 12 CFR 1003.6 ( b ) and See Appendix B to Part 1003. 

WHEREFORE, that LoanDepot LLC be permanently enjoined from producing and disseminating false loan applications not requested or authorized by consumers ; that LoanDepot LLC be permanently enjoined from falsely promising consumers mortgage financing and refinancing proposals that use and convert consumer provided information for such proposals into unauthorized false loan applications ; that LoanDepot LLC be permanently enjoined from producing and disseminating to credit reporting agencies and/or affiliated other entities Adverse Action Notices that falsely report the denial of consumer unwanted and unauthorized loan applications ; that LoanDepot LLC be fined the maximum financial penalties authorized by law for each and every incident in which LoanDepot LLC has issued and disclosed false loan applications and the false denial of loan applications ; and for such other and greater individual and other penalties as the proof shall prove, as authorized by law. 
Respectfully submitted XXXX XXXX XXXX

Company response to consumer: Closed with explanation