Re : BSI Financial Knowing and Intentional Violation of Federal and State Debt Collection Practices BSI Financial : Please be advised that you have knowingly and intentionally violated both state and federal debt collection laws by improperly reporting our account as delinquent to the credit agencies. I had numerous conversations with your account representatives about your failure to properly apply our escrow shortage payment of {$480.00} made in XXXX 2016. Due to your failure to apply this payment to escrow, you then alleged that our XXXX payment was not made, since it did not include the increased monthly escrow amount you claimed was owed, despite having received our escrow shortage payment. In fact, our XXXX payment of {$2800.00} was made on XXXX XXXX, 2016. 
You failed to acknowledge any receipt of this payment and alleged we failed to make any payment on our mortgage for XXXX 2016. I had repeated conversations with your account representatives and posted a message to your so called customer service department explaining your mistake and put you on notice that any reported delinquency to the credit agencies would be treated as a violation of the law. Your account representatives acknowledged your mistake and acknowledged that you had in fact received the proper payment and escrow shortage payment. Not surprisingly, however, you still proceeded to report to the credit agencies that we had failed to make our mortgage payment. 
To further compound your knowing and intentional violations and despite repeated requests, you have failed to provide any accounting of our escrow account reflecting application of our escrow shortage payment of {$480.00} and have subsequently raised our mortgage payment almost {$50.00} per month to cover the " escrow shortage ''. At this point, I can only assume that you have illegally converted our {$480.00} payment, since you have failed to apply it to our account and refuse to provide any accounting of our escrow account. Given your actions with respect to our account, I can only assume you converted this payment to your legal budget to fund your defense costs given your utter lack of compliance with and complete disregard of state and federal laws. 
Your absolute lack of customer service and knowing refusal to follow the law has left us no choice but to pursue our legal remedies. Accordingly, if you do not within 10 days of the date of this letter ( i ) notify the credit agencies of your mistake and remove your negative report, ( ii ) provide us with a true and accurate escrow accounting, including application of our {$480.00} escrow shortage payment, and ( iii ) credit our account {$2500.00} for damages we have suffered to date due to your violations of state and federal law, we will proceed with filing our claims against you in the applicable court of law and seek recovery of our legal fees. Given your actions, I am also guessing BSI Financial is ripe for a class action lawsuit, as I seriously doubt we are the only customers you have treated in such an egregious manner. 
Although given your actions to date I seriously doubt you will do so, please respond to me at your earliest convenience so that we may settle this matter. 
Regards,