Consumer complaint received 2017-09-21
Company: POPULAR BANK
State: CA
Product: Debt collection
Sub-product: Mortgage debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
Banco Popular is reporting inaccurate information on our credit report regarding a loan we had with them in XXXX. We have made every attempt we can to contact them report this accurately on our credit report or to give us a demand for the amount they say we do owe so that we can clear this from our credit report. Not only are they reporting that we owe them money we do not owe, we can not get a hold of anyone that can give us any information on how we can get this cleared up. We have contacted them 9 times over the last 15 days at this phone number : XXXX. After being on hold no less than 45 minutes and as long at 1 hour and 15 minutes we are told this is a banking center and we are given the number for the loan center.  We have contacted the loan center 9 times over the last 15 days at this phone number XXXX. We are prompted to enter our account number, once we have done this the phone system disconnects before anyone gets on the phone and before we are prompted to enter in any other info. We also have had an independent 3rd party credit reporting agency ( XXXX XXXX attempting to verify this account for us and they too are unable to get in contact with anyone at Banco Popular to verify this account ) This Banco account was an old HELOC loan from a property located at XXXX XXXX XXXX XXXX # XXXX, XXXX, CA This property was purchased as our primary residence in XXXX. The property was foreclosed on in XXXX. When we purchased this property we obtained a first mortgage XXXX XXXX and a second HELOC mortgage from XXXX. XXXX then transferred servicing of the 2nd mortgage HELCO to Banco Popular. This Banco loan that is reporting on our credit with a balance owed was a purchase money 2nd mortgage. The property is located in California. Since California is a non-recourse state any amount due on the 2nd mortgage at the time of foreclosure would have had to be reported as 0, property foreclosed. 

We are requesting that Banco Report this account accurately on our credit report as 0 balance due. If they can not be reached and do not reply to requests, we request that this account be removed from our credit completely as an unverifiable account. 

In XXXX after a storm we had flooding in the unit. The HOA insurance and our HO6 insurance would not pay to have it fixed as it was considered and act of XXXX. We were upside down on the home. We attempted to work with XXXX XXXX and Banco to negotiate a short sale. Neither lender was able to come to an agreement for a short sale and the property was ultimately foreclosed on. 

Regarding the BANCO trade line on the credit report that is showing a balance due. This trade line is the HELOC 2nd Mortgage that was obtained to acquire the property located at XXXX XXXX property. The original lender was XXXX. XXXX is a subsidiary of BANCO Popular. The borrower has requested that BANCO update this account to show it is closed with no balance. They have attempted this multiple times over the course of the last 3 years. I too have requested a credit supplement asking for this account to be accurately reported as closed with zero balance. BANCO has not responded to XXXX XXXX Request for accurate reporting as of today. It appears that BANCOs inaccurate reporting of this account is also a violation of current CFPB standard. Since this account was originally acquisition funds and California is a Non-recourse state, this account would have automatically been closed with a 0 balance due, when the home was foreclosed on and sold to the new owner. 

I have provided the original Acquisition HELOC, Grant Deed and First Mortgage Deed of Trust, and the  Subordination to the new XXXX XXXX Deed of Trust in XXXX to establish the chain of events and to support that this account is in fact acquisition money that would have been stripped off at foreclosure.

Company response to consumer: Closed with explanation