Consumer complaint received 2016-01-12
Company: Statebridge Company
State: CA
Product: Mortgage
Sub-product: Conventional adjustable mortgage (ARM)
Issue: Loan modification,collection,foreclosure

Complaint:
I have been fighting with my loan servicers for a few years now. Over the years, my loan servicer has been switched a few times. I have been searching and requesting information about the true creditor or beneficiary of my loan for since XX/XX/XXXX. Every time I sent a Qualified Written Request or a debt validation letter to my servicer, the servicing to my loan would be transferred to another servicer. After receiving some information from a certified loan auditor, I decided to exercise my right to rescind my loan. On XX/XX/XXXX, I mailed to StateBridge Company, LLC, hereinafter referred to as StateBridge, a Notice of Rescission canceling my Deed of Trust and Promissory Note. StateBridge received my rescission notice on XX/XX/XXXX. Pursuant to the Federal Truth In Lending Act, hereinafter referred to as TILA, the rescission is self-enforcing. It automatically extinguishes the lien and the liability. The statute and regulation specify that the security interest, promissory note or lien arising by operation of law on the property becomes automatically void. StateBridge has failed to comply with the rescission obligations which subjects StateBridge to potential liability. Non-compliance is a violation of the Act which gives rise to a claim for actual and statutory damages pursuant to 15 U.S.C. section 1640. StateBridge has failed to take the mandatory steps within the 20 day calendar statutory period. Since they have failed to comply with the statute within the 20 days, StateBridge and/or the " creditor '' have waived any and all defenses and are now in violation of their statutory duties. Because they have failed to act within 20 days, they have given up their right to make a claim for the money that was allegedly loan to me. The debt is not only unsecured, but it is eradicated starting with the rescission notice and ending with their failure to comply with the statute within the twenty calendar day period under TILA. 
The Supreme Court noted in XXXX v. XXXX that nowhere does 15 U.S.C. section 1635 ( a ) allow for a debate as to disputed or undisputed notices ; simply put the transaction and its contracts are void as a matter of law upon mailing of the Notice of Rescission. As a practical consequence of the XXXX ruling, a lender now bears the burden of filing a lawsuit to contest the borrower 's ability to rescind. In this matter, StateBridge has failed to take any action including filing a lawsuit against me to challenge the rescission within the twenty statutory days. Even though the Deed of Trust and the Promissory Note are canceled by operation of law, StateBridge is attempting to foreclose on my property on XX/XX/XXXX. I do n't understand how they can proceed with a foreclosure when there is no valid Deed of Trust. Given the blatant disrespect for the law, I am filing this complaint with the CFPB in hopes that it will take action against StateBridge for their disregard for the law. I believe that it is necessary for me to file this complaint because it appears StateBridge believes it can violate Federal and State law without any consequences for their actions.

Company public response: Company chooses not to provide a public response
Company response to consumer: Closed with explanation