Consumer complaint received 2023-11-08
Company: Specialized Loan Servicing Holdings LLC
State: CA
Product: Debt collection
Sub-product: Mortgage debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
Specialized Loan Servicing continues to try and collect an alleged debt that is not owed. Under the XXXX when a consumer who signed a simple contract presents legal tender and it is refused under federal law the debt is discharged. Specialized Loan Service did not actually loan anything of value to me therefore there is no loss. If they have proof of loaning me money please provide me with the ORIGINAL book entry for this consumer transaction.

3-203. TRANSFER OF INSTRUMENT ; RIGHTS ACQUIRED BY TRANSFER. 
Primary tabs ( a ) An instrument is transferred when it is delivered by a person other than its issuer for the purpose of giving to the person receiving delivery the right to enforce the instrument. 

( b ) Transfer of an instrument, whether or not the transfer is a negotiation, vests in the transferee any right of the transferor to enforce the instrument, including any right as a holder in due course, but the transferee can not acquire rights of a holder in due course by a transfer, directly or indirectly, from a holder in due course if the transferee engaged in fraud or illegality affecting the instrument. 

( c ) Unless otherwise agreed, if an instrument is transferred for value and the transferee does not become a holder because of lack of indorsement by the transferor, the transferee has a specifically enforceable right to the unqualified indorsement of the transferor, but negotiation of the instrument does not occur until the indorsement is made. 

( d ) If a transferor purports to transfer less than the entire instrument, negotiation of the instrument does not occur. The transferee obtains no rights under this Article and has only the rights of a partial assignee.

3-601. DISCHARGE AND EFFECT OF DISCHARGE.

( a ) The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

( b ) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge. 3-602. PAYMENT. 
( a ) Subject to subsection ( b ), an instrument is paid to the extent payment is made ( i ) by or on behalf of a party obliged to pay the instrument, and ( ii ) to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under Section 3-306 by another person.

( b ) Subject to subsection ( e ) a note is paid to the extent payment is made by or on behalf of a party obliged to pay the note to a person that formerly was entitled to enforce the note only if at the time of the payment the party obliged to pay has not received adequate notification that the note has been transferred and that payment is to be made to the transferee. A notification is adequate only if it is signed by the transferor or the transferee ; reasonably identifies the transferred note ; and provides an address at which payments subsequently can be made. Upon request, a transferee shall seasonably furnish reasonable proof that the note has been transferred. Unless the transferee complies with the request, a payment to the person that formerly was entitled to enforce the note is effective for purposes of subsection ( c ) even if the party obliged to pay the note has received a notification under this paragraph. 
( c ) Subject to subsection ( e ), to the extent of a payment under subsections ( a ) and ( b ), the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under Section 3-306 by another person.

( d ) Subject to subsection ( e ), a transferee, or any party that has acquired rights in the instrument directly or indirectly from a transferee, including any such party that has rights as a holder in due course, is deemed to have notice of any payment that is made under subsection ( b ) after the date that the note is transferred to the transferee but before the party obliged to pay the note receives adequate notification of the transfer. 
( e ) The obligation of a party to pay the instrument is not discharged under subsections ( a ) through ( d ) if : ( 1 ) a claim to the instrument under Section 3-306 is enforceable against the party receiving payment and ( i ) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or ( ii ) in the case of an instrument other than a cashier 's check, teller 's check, or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or ( 2 ) the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument. 

( f ) As used in this section, " signed, '' with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process to or with the record with the present intent to adopt or accept the record. 

3-603. TENDER OF PAYMENT. 
Primary tabs ( a ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. 

( b ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. 

( c ) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument. 

3-604. DISCHARGE BY CANCELLATION OR RENUNCIATION.

Primary tabs ( a ) A person entitled to enforce an instrument, with or without consideration, may discharge the obligation of a party to pay the instrument ( i ) by an intentional voluntary act, such as surrender of the instrument to the party, destruction, mutilation, or cancellation of the instrument, cancellation or striking out of the party 's signature, or the addition of words to the instrument indicating discharge, or ( ii ) by agreeing not to sue or otherwise renouncing rights against the party by a signed record. 

( b ) Cancellation or striking out of an indorsement pursuant to subsection ( a ) does not affect the status and rights of a party derived from the indorsement. 

( c ) As used in this section, " signed, '' with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process to or with the record with the present intent to adopt or accept the record. 
8-501. SECURITIES ACCOUNT ; ACQUISITION OF SECURITY ENTITLEMENT FROM SECURITIES INTERMEDIARY. 
( a ) " Securities account '' means an account to which a financial asset is or may be credited in accordance with an agreement under which the person maintaining the account undertakes to treat the person for whom the account is maintained as entitled to exercise the rights that comprise the financial asset. 

( b ) Except as otherwise provided in subsections ( d ) and ( e ), a person acquires a security entitlement if a securities intermediary : ( 1 ) indicates by book entry that a financial asset has been credited to the person 's securities account ; ( 2 ) receives a financial asset from the person or acquires a financial asset for the person and, in either case, accepts it for credit to the person 's securities account ; or ( 3 ) becomes obligated under other law, regulation, or rule to credit a financial asset to the person 's securities account. 

( c ) If a condition of subsection ( b ) has been met, a person has a security entitlement even though the securities intermediary does not itself hold the financial asset. 

( d ) If a securities intermediary holds a financial asset for another person, and the financial asset is registered in the name of, payable to the order of, or specially indorsed to the other person, and has not been indorsed to the securities intermediary or in blank, the other person is treated as holding the financial asset directly rather than as having a security entitlement with respect to the financial asset. 

( e ) Issuance of a security is not establishment of a security entitlement.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation