Consumer complaint received 2016-11-18
Company: SELECT PORTFOLIO SERVICING, INC.
State: CA
Product: Mortgage
Sub-product: Other mortgage
Issue: Loan modification,collection,foreclosure

Complaint:
PART ONE Select Portfolio Servicing, Inc. has continued to violate Consumer Rights Laws, the Federal Trade Commission Act Section 5 : Unfair or Deceptive Acts or Practices ( See Federal Trade Commission Act.pdf ), and 15 U.S.C. Sec. 1692c, 1692d, 1692e, 1692f, 1692g of the FTC Fair Debt Collection Practices Act ( See Fair Debt Collection Practices Act.pdf ). SPS has falsely advertised and marketed the Making Home Affordable Act and other loss mitigation options ( See False Advertising and Marketing.pdf ). SPS has used both affiliates ( See bottom of page XXXX, Affiliate Business Disclosure : spsaffiliate.pdf ) and non affiliates, with whom SPS has a joint marketing agreement, as debt collectors who use this as an egregious and illegal method to foreclose on my home to collect a debt. 

The CFPB needs to immediately establish who the affiliate companies are that SPS is related to by common ownership or control for whom Consumer Ombudsman Specialist XXXX XXXX, Customer Advocate XXXX XXXX, and others act as debt collectors. These debt collectors are not an exception as it pertains to the Fair Debt Collection Practices Act. The CFPB also needs to immediately establish the true name of the debt collector responsible for sending me the Required Information Notices who harassed me for two years with oppressive requirements. This is a third party non affiliate who is not an exception to the FDCPA. Even after restricting SPS from sharing my personal information with this debt collector, she continues to use the very same illegal methods under the name XXXX XXXX. ( See Latest Debt Collector.pdf ). 

XXXX transferred my mortgage loan to Select Portfolio Servicing , Inc. effective XX/XX/XXXX but SPS did not send me notice of my right to limit the sharing of my personal information and did not tell me how SPS collects, shares, and protects my personal information ( as required by both federal and state law ) for over three years until XX/XX/XXXX. ( See Sharing Personal Information.pdf ). I had to compel SPS to comply with federal and state laws by filing XXXX meticulously well documented complaints with the Consumer Financial Protection Bureau. However SPS continues to service my loan even at the Ombudsman level as a debt collector ( See SPS XX/XX/XXXX ). By process of elimination this is the result of information about your transactions and experiences as part of the affiliates every day business purposes. ( See page XXXX : Sharing Personal Information.pdf ). Consequently the affiliate 's everyday business purposes include debt collection. 

SPS exploits corrupt laws that provide exception to " 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. '' Notwithstanding this exclusion, the term " debt collector '' 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 ( See pages XXXX-XXXX : XXXX ). 

Therefore the exception does not apply to creditors who use third party debt collectors as third parties are not an exception. The exception only applies to creditors who do not use third party debt collectors. Creditors include those who have obtained debts that were not in default ( See page XXXX : XXXX XXXX XXXX XXXX.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation