Consumer complaint received 2016-06-18
Company: JPMORGAN CHASE & CO.
State: NY
Product: Mortgage
Sub-product: Home equity loan or line of credit
Issue: Application, originator, mortgage broker

Complaint:
Complaint to CFPB regarding Chase letter offer for trial modification -- Chase sent a letter dated XX/XX/2016 entitled " Make your first trial payment on time to accept this offer for your home equity account ''. 
The letter stated, " Congratulations! We 're writing to let you know that you 're approved for a Trial Period Plan payment schedule detailed below : '' .. '' Make these ( three ) payments ( of {$2100.00} ) instead of your regular home equity monthly payment, even if you receive a monthly statement that shows a different amount ... If we do n't receive your first payment by XX/XX/2016, you 'll no longer be eligible for this payment schedule or a permanent modification and we may start or continue any collection and/or foreclosure action. '' We are reporting this communication to the Consumer Financial Bureau for the following reasons : We interpret Chase 's Trial Payment Plan to be a violation of the Fair Debt Collection Procedures Act ( FDCPA ) 15 USC 1962, as the proposed payments are not based on, or representative of, any actual debt validated as owed, i.e. Chase is misrepresenting the alleged debt. 
The offer of Trial Period Payments appears to be an attempt at " dual tracking '' this matter. Such activity is prohibited. The CFPB rules for " Loss Mitigation Procedures '' ( attached ) restrict " dual tracking '' where a servicer is simultaneously evaluating a consumer for loan modifications or other alternatives at the same time that it prepares to foreclose on the property. 
Chase is attempting to induce us into signing a contract where no meeting of the minds has taken place, and we believe Chase is presenting said Trial Payment offer with " unclean hands ''. We deem the offer of said contract /Plan to be " unconscionable ''. In a separate letter also dated XX/XX/2016, ( Letter # XXXX ) Chase states that, " You 're eligible for '' a Chase Modification '', but the terms are undisclosed and unspecified. 
Chase is attempting to extort payments to be made to them under terms which are one-sided, e.g. not beneficial to us, but only to Chase. The Plan causes us to waive rights, which we do not intend to waive. It is our position that the loan was procured by fraud. 

Chase 's accounting practices are questionable and disputed. It is our position that Chase maintains multiple account numbers evidencing derivative forms of debts and/or assets relative to the original transaction. 
Chase 's offer failed to fully assess all available options. The CFPB Mortgage Servicing Rules reference " investor 's eligibility rules '', but such options have not as yet been evaluated, determined, or communicated by Chase to us, or to our counsel. It is our position that Chase re-characterized the original line of credit transaction by using our application and signatures, unbeknownst to us, to securitize the second-lien HELOC and sell it as securities, receive payment from multiple sources, and profit therefrom, e.g. " double-dipping ''. 
We interpret Chase 's Trial Payment Plan to be threatening in nature by limiting " eligible options '' in the absence of due process, which is applicable via the court proceedings which Chase initiated. 
We interpret Chase 's offer to be a violation of ECOA on the basis of race and age, and income source. Chase knows or should know we are XXXX on a fixed income as that information has been provided to them. 
We object to the offer for the reasons cited, and do not accept it. We have informed Chase at XXXX XXXX XXXX, XXXX, XXXX XXXX, Attn : XXXX XXXX with to copy to Chase, XXXX XXXX XXXX, XXXX, XXXX XXXX. The original letter was dated XX/XX/2016 and a corrected follow up letter was sent on XX/XX/2016.

Company response to consumer: Closed with explanation