Consumer complaint received 2022-10-08
Company: TMX Finance LLC
State: GA
Product: Debt collection
Sub-product: Auto debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was result of identity theft

Complaint:
Company responded on XX/XX/XXXX that XXXX XXXX entered a thirty ( 30 ) day Pawn Transaction and Security Agreement ( the Agreement ) with TitleMax on XX/XX/XXXX, in the original principal amount of {$3000.00} ( the Pawn ) and pledged his XXXX XXXX XXXX XXXX ( the Vehicle ) as collateral. Pursuant to the terms of the Agreement, XXXX XXXX Pawn balance was due on or before XX/XX/XXXX. If he did not wish to pay his full balance, at a minimum, XXXX XXXX could paid any accrued pawnshop charges to extend the Pawn for an additional thirty ( 30 ) days. 
On XX/XX/XXXX, XXXX XXXX elected to pay the minimum charges of {$450.00} to extend his Pawn rather than paying his {$3400.00} balance.. XXXX XXXX then repeatedly made payments to extend his Pawn until XX/XX/XXXX, when TitleMax received notice that his {$450.00} payments made on XX/XX/XXXX, and XX/XX/XXXX, had charged back According to the Agreement terms, XXXX XXXX defaulted on his Pawn Agreement and his the vehicle was repossessed on XX/XX/XXXX. XXXX XXXX account charged off on XX/XX/XXXX, at a balance of {$3800.00}. On XX/XX/XXXX, the Vehicle sold for {$2300.00}, {$1600.00} less than his previous Pawn balance. XXXX XXXX remains bound by the terms and conditions of the signed Agreement. In his complaint, XXXX XXXX alleged his vehicle was illegally repossessed. Our investigation confirmed that TitleMax acted appropriately and adhered to Georgia law and, in fact, gave XXXX XXXX XXXX additional months to make payment arrangements before repossessing the collateral he used for his Pawn. XXXX XXXX also alleges that TitleMax failed to acknowledge his freedom of information request. TitleMax is not subject to the Freedom of Information Act ; however, as a matter of course and customer service, on XX/XX/XXXX, TitleMax responded to XXXX XXXX via XXXX mail with a copy of the Agreement with his signature. 
On XX/XX/XXXX, XXXX XXXX completed an Affirmation of Cancellation of Contract form ( Affirmation ) wherein he attested that TitleMax failed to produce his signature for the alleged contract, TitleMax failed to produce documentation that TitleMax had breached Federal Law, and that TitleMax acted without his permission to unlawfully make a claim against him whereby TitleMax failed to substantiate the claim. He attested to this by signing and swearing with his signature and notarization. There is no evidence that TitleMax failed to do any of the things XXXX XXXX claimed in the Affirmation. As discussed above, TitleMax sent a copy of the Agreement with XXXX XXXX signature to him just five days prior to the Affirmation. 
XXXX XXXX desired resolution is to pay him damages and pain and suffering of {$10000.00}. Yet XXXX XXXX enjoyed the benefit of the funds he borrowed and our investigation reveals no wrongdoing on TitleMaxs part. Our inquiry reveals further that XXXX XXXX charged back his payment on his account in XXXX and XXXX and then signed the above-discussed Affirmation, which contradicts the fact that XXXX XXXX had a signed Pawn Agreement with TitleMax on which he had made payments. I conditionally accept your offer upon proof my signature was not a tender of payment and it did not 100 % pay off this loan at closing your company has failed to validate this debt. Pursuant to 15 usc 1692 ( 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. Notwithstanding the exclusion provided by clause ( F ) of the last sentence of this paragraph, the term includes any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts For the purpose of section 1692f ( 6 ) of this title, such term also includes any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the enforcement of security interests. The term does not include of security interests, The term does not include ( A ) Any officer or employee of a creditor while, in the name of the creditor, collecting debts for such creditor ( B ) Any person while acting as a debt collector for another person, both of whom are related by common ownership or affiliated by corporate control, if the person acting as a debt collector does so only for persons to whom it is so related or affiliated and if the principal business of such person is not the collection of debts. 
( c ) Any officer or employee of the United States or any State to the extent that collecting or attempting to collect any debt is in the performance of his official duties ; [ D Any person while serving or attempting to serve legal process on any other person in connection with the judicial enforcement of any debt : ( E ) Any nonprofit organization which, at the request of consumers performs bona fide consumer credit counseling and assists consumers in the liquidation of their debts by receiving payments from such consumers and distributing such amounts to creditors. I requested you provide valid proof that you are a creditor. That proof should not include Consumer Contract because as per the judgment in XXXX XXXX XXXX XXXX, the Consumer Contract is not sufficient evidence of a debt.Also, provide the XXXX XXXX of the transaction originated by you. I am attaching herewith a valid proof of you being a debt collector under the provisions of FDPCA. your financial institution executed by way of signing an Agreement ( " Document '' ). As per 15 USC 6827 ( 3 ) " The term document means any information in any form. '' The provisions of 15 USC 6801 ( a ) require financial institutions to notify consumers of their information sharing practices and provide for a right to opt out of certain sharing. In the above-mentioned Consumer Credit Transaction , without giving me the opportunity to opt-out, your institution furnished my nonpublic personal information to nonaffiliated third parties ( ie Transunion, XXXX & XXXX ) XXXXThis my last attempt to amicably resolve your continued violation of the Fair Debt Collection Act, The Fair Credit Reporting Act, The Consumer Credit Protection Act, the Dodds Frank Act UDAAP section 1031 and 1036, The False Claim Act 31 U.S.C 3729-3733, Theft by Conversion, Section 5 of The Federal Trade Commission 15 U.S.C 45, regarding your REFUSAL to validate and repossessed my vehicle. According to 15 USC 1692a, Congressional Findings or Declaration of Purpose, you are hereby Informed that as a result of your fraudulent practices with the intention to cause harm, I have suffered mentally as well as financially. Title max Tmx Finance and its agents harassed me for an alleged debt that was not even validated. Your Company shared statements on XXXX XXXX as well as a copy of a Consumer Contract as per the judgment in XXXX XXXX XXXX XXXX, the Consumer Contract is not sufficient evidence of a debt.Title Max failed to provide the audit trail of the transaction originated by you. Every contract or duty within the Uniform Commercial Code imposes an obligation of good faith in its performance and enforcement Ucc-1-304.3-305. DEFENSES AND CLAIMS IN RECOUPMENT The right to enforce the obligation of a party to pay an instrument is subject to the following : a defense of the obligor based on duress, lack of legal capacity or illegality of the transaction which, under other law, nullifies the obligation of the obligor. Fraud that induced the obligor to sign the instrument with neither knowledge nor reasonable opportunity to learn of its character or its essential terms.Your company failed to clearly and conspicuously disclose the finance charge violating 15 U.S.C 1632 ( a ) which states The terms " annual percentage rate and finance charge shall be disclosed more conspicuously than other terms, data, or information provided in connection with a transaction, except information relating to the identify of the creditor. According to 15 U.S. Code 1605 ( a ) - Determination of finance charge which states the amount of the finance charge in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not include charges of a type payable in a comparable cash transaction.This entity and all agents, your department and/or its predecessors, and/or Municipal government and/or their political subdivisions as those Contract, quasi-contracts, Agreement, implied, expressed, and/or tacit contractual consents and/or Power of Attorney were obtained as the result of lack of full understanding and failure to properly disclosure the nature of the contracts due to threat, duress, and coercion and/or Concealment of the materials facts relevant to a meeting of the minds, and make those Contracts, quasi Contracts, Agreement, Implied, expressed, and/or tacit Contractual Consents void ab initio ( Void from the beginning ) and terminated upon my discovery and election.You failed to provide an Affidavit Certifying that you did not breach any federal state contractual commercial or official oath or laws in carrying out the alleged contract and associated transactions. Failed to Certify that you did not unlawfully without my consent use my signature to materially alter, falsely endorse, stamp of convert any contract bearing my name or signature, into a security, in order to convert my contract into assets, or gain assets from a third party in stock number XXXX. You MUST Certify and prove that you are an actual LENDER and that you did not commit any action that would preclude that you used my identity in a fraudulent or illegal manner in Violation of Law and ( FEDERAL TRADE COMMISSION ( FTC ) Policy, yourself or in collusion with a third party or additional parties.You are bound by law to provide this information upon a request pursuant to FOIA USC 5 section 552 and the Fair Debt Collections Practices Act along with the aforementioned laws and Your company have shown bad faith and unclean hands in repossessing my vehicle illegally without validating the debt.Pursuant to 15 U.S.C 1692 ( g ) validation of debt which states Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing ( 1 ) the amount of the debt ; ( 2 ) the name of the creditor to whom the debt is owed ; ( 3 ) a statement that unless the consumer, within thirty days after receipt of the notice, disputes the validity of the debt, or any portion thereof, the debt will be assumed to be valid by the debt collector ; ( 4 ) a statement that if the consumer notifies the debt collector in writing within the thirty-day period that the debt, or any portion thereof, is disputed, the debt collector will obtain verification of the debt or a copy of a judgment against the consumer and a copy of such verification or judgment will be mailed to the consumer by the debt collector ; and ( 5 ) a statement that, upon the consumers written request within the thirty-day period, the debt collector will provide the consumer with the name and address of the original creditor, if different from the current creditor. 
It also states If the consumer notifies the debt collector in writing within the thirty-day period described in subsection ( a ) that the debt, or any portion thereof, is disputed, or that the consumer requests the name and address of the original creditor, the debt collector shall cease collection of the debt, or any disputed portion thereof, until the debt collector obtains verification of the debt or a copy of a judgment, or the name and address of the original creditor, and a copy of such verification or judgment, or name and address of the original creditor, is mailed to the consumer by the debt collector. Collection activities and communications that do not otherwise violate this subchapter may continue during the 30-day period referred to in subsection ( a ) unless the consumer has notified the debt collector in writing that the debt, or any portion of the debt, is disputed or that the consumer requests the name and address of the original creditor. Any collection activities and communication during the 30-day period may not overshadow or be inconsistent with the disclosure of the consumers right to dispute the debt or request the name and address of the original creditor. Title Max failed to communicate loan XXXX as disputed to XXXX, XXXX or XXXX violating 15 U.S.C 1692 ( e ) and continued to report inaccuracies on my credit file defaming my character reporting a repossession and alleged debt on my credit file violating FDCPA Section 809 ( b ), FTC opinion letter Cass from XXXX XXXX you are not allowed to pursue collection activity until the debt is validated. You should be made aware that in TWYLA BOATLEY, Plaintiff, vs, DIEM CORPORATION, No, CIV 03-0762 UNITED STATES DISTRICT COURT FOR THE DISTRICT OF ARIZONA. Violating US Court of Appeals Ninth Circuit No.00-15946 Nelson Vs Chase Manhattan.Fine is extent of damages incurred by the wronged party as deemed by the court. In XXXX, the courts ruled that reporting a collection account is indeed considered collection activity. Your Company violated the cease and desist orderentities violated the Fair Credit Reporting Act by regularly furnishing inaccurate and incomplete information about consumers to credit reporting agencies.Violating 15 USC 1692e ( 2 ) ( A ) by reporting the Derogatory Debt on my credit report. The legal status of this debt is falsely representing the legal status of this debt reporting it to the credit bureau FCRA, $ 611.Pursuant to 15 U S C. 1681 ( i ) ( 5 ) Treatment of inaccurate or unventiable information. : The FCRA prohibits information furnishes from providing information to CRA 's that they know or have reasonable cause to believe is inaccurate. The FCRA 15 U.S. C. Sections 1681-1681y. imposes responsibilities on all persons who furnish information to CRAs. These responsibilities are found in Section 623 of the FCRA 15 USC. Section 1681 ( s ) 2 - falsely reporting information to the credit bureaus.The Debt Collector harasses, oppresses and abuses consumers for violation of Section 806 15 U.S.C 1692 ( d ) .Title max and XXXX illegally repossessed my private automobile violation of 18 U.S. Code 893 - Financing extortionate extensions of credit using An extortionate extension of credit is any extension of credit with respect to which it is the understanding of the creditor and the debtor at the time it is made that delay in making repayment or failure to make repayment could result in the use of violence or other criminal means to cause harm to the person, reputation, or property of any person.An extortionate is any means which involves the use, or an express or implicit threat of use, of violence or other criminal means to cause harm to the person, reputation, or property of any person. It also states the repayment of any extension of credit includes the repayment, satisfaction, or discharge in whole or in part of any debt or claim, acknowledged or disputed, valid or invalid, resulting from or in connection with that extension of credit. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXXYour company have shown bad faith and unclean hands using false, deceptive, or misleading representation or means in connection with the collection of this debt without validating this debt without certifying they had the right to enforce the debt. Pursuant to 15 U.S.C 1692e which states a debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt represented and implied that nonpayment of a debt will result in the seizure ( repossed ) and sale of my property unlawfully. Your company illegally made threats and repossessed my vehicle an action that can not legally be taken be taking without validating the debt.Your company illegally Communicatied and threaten to communicate credit information on my credit file which is known to be false, including the failure to communicate that a disputed debt is disputed.The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer. Title Max failed to disclose in the initial written communication with the consumer that the debt collector is attempting to collect a debt and that any information obtained will be used for that purpose, and the failure to disclose in subsequent communications that the communication is from a debt collector they made false representation. your Company has violated 15 USC 1692j ( a ) because your Company furnished a deceptive form to create a false belief in me that the " Creditor '' was attempting to collect the debt but in reality, it was not true.Pursuant to 15 USC 1692j ( b ), any person who violates the above-mentioned section shall be liable to the extent as mentioned under 15 USC 1692k . 15 U.S. Code 1692j - Furnishing certain deceptive forms which states 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. 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. Also in violation of 18 U.S. Code 1001 - Statements or entries which states whoever, in any matter within the jurisdiction of the executive, legislative, or judicial branch of the Government of the United States, knowingly and willfully falsifies, conceals, or covers up by any trick, scheme, or device a material fact ; makes any materially false, fictitious, or fraudulent statement or representation ; or makes or uses any false writing or document knowing the same to contain any materially false, fictitious, or fraudulent statement or entry ; shall be fined under this title.Debt Collectors may not use any language or symbol on an envelope for correspondence with you ( other than its address ) that indicates it is a debt collector.Your company and XXXX is in violation pursuant to 15 usc 1692 ( f ) illegally took nonjudicial action to effect dispossession or disablement of my XXXX XXXX XXXX XXXX XXXX and there is no present right to possession of my property claimed as collateral through an unenforceable security interest and there was no present intention to take possession of my property.Title Max without my consent given ( Communicated with third parties in connection with the collection of this debt XXXX violation pursuant to 15 usc 1692 ( f ). Title max is also in violation Pursuant to 15 U.S. Code 1692c - Communication in connection with debt collection If a consumer notifies a debt collector in writing that the consumer refuses to pay a debt or that the consumer wishes the debt collector to cease further communication with the consumer, the debt collector shall not communicate further with the consumer with respect to such debt, except ( 1 ) to advise the consumer that the debt collectors further efforts are being terminated ; ( 2 ) to notify the consumer that the debt collector or creditor may invoke specified remedies which are ordinarily invoked by such debt collector or creditor; or ( 3 ) where applicable, to notify the consumer that the debt collector or creditor intends to invoke a specified remedy. 
If such notice from the consumer is made by mail, notification shall be complete upon receipt. 
I certified mail and return receipt and your company is in violation of 15 U.S. Code 1692 ( c ).

Company response to consumer: Closed with explanation