Consumer complaint received 2017-09-12
Company: Seterus, Inc.
State: OH
Product: Debt collection
Sub-product: Mortgage debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was already discharged in bankruptcy and is no longer owed

Complaint:
XXXX NOTICE OF ERRORS Loan Servicer : Seterus Loan # XXXX Property location : XXXX XXXX XXXX XXXX XXXX, Oho XXXX Owner : XXXX XXXX trustee last 4 s.s XXXX Loan Profile : Chapter XXXX Bankruptcy XX/XX/XXXX closed in XX/XX/XXXX property was reaffirmed by XXXX XXXX XXXX trustee. File on XX/XX/XXXX Doc XXXX XXXX XXXX XXXX agrees to a cram down of {$50000.00} making {$50000.00} the investors total liability in the loan. The balance of the cram down was XXXX and was to be allowed to be placed with the Class 7 unsecured debt but was never pursued XXXX in the bankruptcy and therefore discharged at confirmation making the {$23000.00} uncollectible by the creditorXXXX. See enclosed reaffirmation agreement Plaintiffs Exhibit A, Confirmed plan Exhibit B. 

Violations by Seterus : 1. Starting in XX/XX/XXXX I received an Account Statement showing a current principal balance of {$49000.00} and a Current interest Arrearage Balance of {$23000.00}. This FDCPA and CFPB violation has now continued for years escalating from statements showing the discharged debt as interest but to now the payoff and Outstanding Balance owed. See Exhibit C, D, E, F, G, H. 
2. During the Bankruptcy from XX/XX/XXXX to XX/XX/XXXX Seterus placed Forced placed insurance on the subject property to protect the investors XXXX total investment but failed to inform the courts of this action or the owner of the property. This would have been a violation of the bankruptcy code. 
3. In XX/XX/XXXX XXXX as a result of a reaffirmation agreement being executed had only a {$50000.00} interest in the property located at XXXX XXXX XXXX XXXX. XXXX, Ohio XXXX See Exhibit A, I.
4. Starting in XX/XX/XXXX to present Seterus had been enforcing flood insurance on the property. In XX/XX/XXXX I received a letter from Seterus listing the guidelines for the Flood Disaster Protection Act of XX/XX/XXXX on Forced Placed Flood insurance amounts allowed by Federal Law See Exhibit Q. Seterus has as of today been over insuring the property with Force Placed insurance in the amounts of {$120000.00} to {$120000.00} See Exhibit J, K, L, M, N. This action was and is a violation of the XX/XX/XXXX and FDCPA. As stated in the guidelines presented to me by Seterus See Exhibit Q. Seterus was only permitted by law to place only up to {$50000.00} worth of coverage on the property to protect the investors interest as stated in their letter See Exhibit Q. As a result of this action Seterus failed to comply with Federal Law continuously over the past 6 years by placing an absorbent amount of insurance on the property in amounts as high as {$120000.00} to {$120000.00} I have included a print out and statements See Exhibits J, K, L, M, N, P.
5. As a result of these illegal insurance fees I could not pay the premiums and was forced by the debt collector Seterus and their attorney also notified me that they were trying to collect a debt forced me to pay inflated reinstatement fees which included not only the insurance premiums and now there attorneys fees in order to keep my property from being sent to foreclosure. See Exhibit Q I sent faxes and CFPB reports to Seterus only to be told that there would respond and never have see Exhibit S, T. Per the law a investor has the right to place forced place of insurance on the property. But Seterus would not acknowledge in any correspondence I have sent to them and has ignored the amount of insurance forced placed on the property which was what not allowed by federal law. To conclude this matter, it has now been brought to my attention that I was not even in a Flood Zone and Seterus paper work was incorrect used to place the illegal insurance on the property. so now they have admitted in a correspondence letter back to me that I never even needed Flood Insurance See Exhibit O.
6. I have enclosed a print out of just some of the now illegal fees see Exhibit P, R 7. Seterus has now sent me out a letter stating that my deductible on my insurance policy is to high and has written a forced placed policy to replace my insurance. The note nor the mortgage have language regarding a deductible having to be a certain amount only that the insurance has to be carried on the property to protect the investor see Exhibit U 8. On XX/XX/XXXX I purchased a Flood insurance policy XXXX though XXXX that would cover the investors liability in the property in the amount of {$50000.00} which was the balance of the note at the time. see Exhibit W 9. The policy XXXX was compliant with the XX/XX/XXXX Flood Act. Setrus added an additional {$74000.00} of insurance by adding a new policy to the property this was not incompliance with the XX/XX/XXXX Flood Act see Exhibit X, Z-1.
10. In XX/XX/XXXX I had to retain a lawyer to combat the illegal activity being placed on my mortgage by Seterus my attorney still allowed me to try to work things though with Seterus by allowing Seterus to talk to me one on one as stated see Exhibit V. On XX/XX/XXXX I called Seterus and they now have no record of this letter on file.
11. I have attempted now over the past 5 years to get Seterus to correct the balance of my loan to be compliant with the court order signed by Federal Judge XXXX with now prevail. I have enclosed within the correspondence letters that I have received back from Seterus and XXXX in regards to the illegal activity on my loan see Exhibit Z, Z-1. 

After all of my attempts to make Seterus correct my loan balance and credit me back the insurance premiums attorney fees in connection with the mismanagement of my loan Seterus has now filed another foreclosure suit against myself and the trustee in an attempt to force my hand to pay more fees that I do not owe see Exhibit A1, A2.

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