Consumer complaint received 2020-06-17
Product: Debt collection — Mortgage debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: PNC Bank N.A. (OH)

XX/XX/XXXX CFPB Complaint on fraudulent 14 year old HELOC foreclosure complaint Dear CFPB, All the information below is easily verified by documentation and telephone recordings with all relevant parties. Please find below, the relevant information and documents necessary for your review of what we and others know to be a fraudulent, illegal, undocumented attempt to take our home via an illegal foreclosure complaint based on a previously discharged, then cancelled, then time barred, then discharged again due to statute of limitations, on a 14 year old home equity line of credit, ( HELOC ) loan for {$32000.00} Per your requested 5 step protocol, please see the following. 

1. What is the complaint about? We are a XXXX year old pro se defendant couple with very little knowledge of the foreclosure process who are trying to fight a fraudulent foreclosure action on a 14 year old home equity line of credit ( HELOC ) for which there is no longer proper verification available to pro se defendants and consumers according to almost all relevant third party sources statements to us, as well as obvious attempts to obstruct our getting the proper documentation required to defend ourselves, if it even exists. 
Our complaint concerns the legitimacy of almost every aspect of the foreclosure action against us, from the origination irregularities sited by XXXX XXXX, to procedural violations, lack of standing, lack of complete and proper documentation and response, multiple redactions, possible fraudulent and misleading, contradictory recorded statements involving multiple parties engaged in the processing, holding, transfer violations, embezzlement, and/or the non application of a 1099-C cancellation of debt sited in documents issued by 2 Federal agencies, XXXX XXXX and the IRS. There are multiple issues in the improper origination of this loan that are a matter of record and constitute issues of material fact. There has been a consistent and deliberate lack of transparency as well as attempts to conceal, mislead and otherwise create confusion and ambiguity concerning the status and legitimacy of this debt, resulting in documented malfeasance, misfeasance and nonfeasance by multiple parties involved and therefore restricting the consumers rights to due diligence and thus harming our constitutional right of due process, in defending ourselves as pro se defendants, against this unsupported fraudulent foreclosure action against our home of 33 years. 

We believe, and are confident we can prove the illegal action against us to be a fraudulent attempt to collect a fraudulent debt, by corrupted third party defendants and plaintiffs that we believe do not have legal standing in an attempt to collect what we believe to be a previously resolved debt, which therefore represents an illegal action against us. This is clearly a thinly veiled attempt to bully homeowners into settling with pretender lenders on fraudulently trumped up, unsupported, time barred debts to target defendants that do not have financial means to defend themselves in hopes of bullying, blackmailing and extorting payment in lieu of and without affordable legal defense, which is why we need your assistance to making them provide all documents relating to and relevant to their claims of standing to collect this fraudulent, previously resolved, time barred debt, the legitimacy of the debt they have acquired, and the process by which they acquired the debt, including all billing and payment documents, interest and time stamped balances to document their debt totals claims made in their complaint over the life of the loan, all notifications sent to us of any and all title transfers, any 1099-C cancellation transactions associated with this loan. We request any and all documents relating to this loan be sent to us, including all private and public agencies documents including XXXX XXXX and all transfer and billing records going back to the origination of the loan forward, as are required by law by the current alleged owners of the debt, verification of the debt and a copy of the judgment. These illegal activities represent consumer fraud, predatory fraudulent debt collection, undocumented, obstructive and non-transparent actions against consumers and borrowers without proper and complete documentation or just cause to do so. 

Further we believe this may very well involve mail fraud, abuse of process, misleading and untruthful statements we have recorded and fraud on many levels by multiple parties due to gross lack of due diligence in originating and illegally transferring this loan. PNC had knowledge of the 1099-C cancellation document but did not follow up to be sure it was properly applied to our account. 

2. What type of problem are we having? Obstruction, misleading information and a total lack of transparency. Upon multiple inquiries to all the parties involved from the origination of this loan forward, we were told this loan was too old to have any proper documentation. After not having heard anything from anyone for 9 years, my wife and I suddenly encountered all of the following : which includes everything from a total lack of cooperation to downright obstruction of our efforts to properly research, defend or respond to this foreclosure complaint on our home of 33 years. Our first mortgage has been current for many years now. But we have gotten no billing, inquiries, annual statements, notifications, nothing for 9 years concerning this HELOC 2nd mortgage until very recently for this foreclosure action with the sole exception of a 1099-C in XX/XX/XXXX, from 2 federal agencies ; XXXX XXXX and the IRS that should have cancelled this loan, as documentation of the cancellation required us to pay taxes on this cancelled loan. This happened at exactly the same time our 1st mortgage was sold. When our 1st mortgage was sold, we received the 1099-C cancellation of debt shortly after and all communication concerning the HELOC ceased until this complaint was filed almost 8 years later in late XXXX. We have experienced a total lack of any proper response and transparency after repeated requests by the Ohio Attorney Generals office and others for all necessary and relevant information, proper documentation and cooperation necessary for us to defend ourselves in this fraudulent, illegal foreclosure complaint. We have encountered a substantial, deliberate and damaging lack of transparency, cooperation, consistency of response in an attempt to engage and respond to plaintiffs ( XXXX XXXX XXXX XXXX ) complaint of foreclosure on our home, to include, but are not limited to multiple redactions in documents, conflicting, contradictory, misleading and inconsistent explanations of fact from multiple parties involved, conflicting documentation, non responses for information, all of which have delayed and denied our due diligence and therefore necessarily, our constitutionally guaranteed due process rights in defending this legal action against us and harmed our ability to properly respond, and defend ourselves against this foreclosure action in the courts. Additionally, in our attempt to defend ourselves we have encounters multiple redactions, intentionally misleading statements, multiple contradiction to the same question from the same parties and a total lack of cooperation to downright obstruction in our attempts to respond to these false claims and to defend ourselves and our home. 

We have been told repeatedly, by multiple third parties, involved relevant parties and previous owners of this debt, that this loan is simply too old to have proper documentation on this 14 year old loan, yet this complaint is based on what the Plaintiffs claim is sufficient documentation that it has failed to produce in its entirety. We have received no billing, inquiries, annual statements, notifications, judgment, nothing for 8 plus  yearsconcerning this HELOC 2nd mortgage until very recently for this foreclosure action with the sole exception of the aforementioned 1099-C, cancellation statement form issued by XXXX XXXX and the IRS, requiring us to pay taxes on this cancelled debt in XXXX of XXXX. The efforts by XXXX XXXX, National City Bank ( now merged with PNC ) PNC Bank, XXXX XXXX XXXX XXXX and XXXX XXXX XXXX XXXX law firm XXXX XXXX XXXX ( XXXX XXXX XXXX and XXXX XXXX XXXX attorneys for plaintiff ) have only further created ambiguity and confusion for my wife and I in our ability to properly defend and respond to this foreclosure complaint by their lack of proper response for complete documentation of the legitimacy of this collection effort. We are unable to afford an attorney and unable to obtain the representation of an attorney at this time. But that may not always be the case, based on new information we have uncovered in our own research and defense of this complaint. We believe this case deserves to be investigated as to regulatory and procedural violations that would inform the need for counterclaims / cross claims, related to malfeasance, misfeasance and nonfeasance and its broader implications to move the law to the benefit of untold numbers of home owners and consumers victimized by the illegal practices. 

Additionally, XXXX XXXX XXXX XXXX sent us a warning letter without proper language concerning our right to dispute. The original collection letters did not tell us we had the right to dispute their allegations and complaint, but specifically stated -- only what we would need to do if we did try to dispute their claims. The letter was very specific and states clearly that we have the right to reinstate after acceleration and other stipulations but somehow fails to clearly state our rights to dispute -- clearly stated for the consumer. This is very misleading, by omission, to many I am sure and not the intention of the law and what it in fact actually requires which is to inform us that we have the right to dispute this debt in court and otherwise. It is hard imagine with such specificity on other topics and rights clearly stated within the document that this was simply an oversight and not intended to diminish and marginalize a consumers rights to dispute as required by law.! 

3. What happed? THE 1099-C CANCELLING OF DEBT, SENT BY THE IRS, DATED XX/XX/XXXX AND FILED BY XXXX XXXX 2 FEDERAL AGENCIES, WAS NOT, AND HAS NOT BEEN PROPERLY APPLIED AND THEREFORE REPRESENT FRAUDULENT AND RECKLESS ABANDONMENT BY THE OWNERS OF THE LOAN, IN AN ATTEMPT WRITE OFF, CANCEL, DIVIDE THE LOAN, DISCHARGE MULTIPLE TIMES, TO ILLEGALLY TRANSFER A FRAUDULENT, ILL CONCEIVED DEBT, THAT CAN NOT BE SEPARATED OUT FROM THE OBVIOUS CONFUSION, CONFLICTS AND CONTRADICTION CREATED BY THE ORIGINATORS OF THE LOAN PNC AND THE OTHER PARTIES INVOLVED IN WHAT ANY REASONABLE PERSON WOULD SEE AS A CONCERTED, COORDINATED, CONSISTENT RACKETEERING EFFORT TO UNLAWFULLY TRANSFER AND OR COLLECT WHAT IS AND SHOULD BE A NON EXISTENT, TIME BARRED, PREVIOULY CANCELLED DEBT, RIDDLED WITH FALSE & MISLEADING STATEMENTS, ORIGINATION AND TRANSFER IRREGULARITIES AND VIOLATIONS AND ILLEGALLY CREATED ORIGINATION IRREGULARITIES, OMISSIONS, AND VIOLATIONS HAVE CREATED AND GIVEN RISE TO MULTIPLE ISSUES OF MATERIAL FACT. We also have received demands for multiple conflicting sums and experienced Dual Actions during the negotiation of our loan modification which did not show the proper application of the 1099-C cancellation of debt, otherwise we would have included. what we then thought to be a cancelled debt, in our modification negotiation, therefore harming and damaging our legitimate financial options and well being. XXXX XXXX has confirmed the 1099-C cancellation they sent to the IRS, but they, PNC and others third parties claim the loan is too old and can not or will not provide requested information for tracking this action so we can confirm relevant details of who, when and how these illegal actions took place. The foreclosure complaints accuracy is very much in doubt, from the amounts claimed to be owed, procedural violations and lack of due diligence, to abuse of process, illegal and misleading title transfers, and multiple redactions restricting and obstructing our ability to defend ourselves to clarify what we believe to be deliberate, documentable counter/cross claims on multiple levels, as it relates to who was and was not the legal owners, who had standing to collect and service the illegally conceived and executed loan during 8 years without any communications. There is total obstruction of all information concerning the timing, ownership and lack of proper application of the 1099-C cancellation of debt, statute of limitations issues and the illegality of attempting to transfer a non negotiable instrument. We requested, because of the above stated obstruction, and were subsequently granted a 60 extension by the court, for the specific above stated reasons, in hopes of untangling all the ambiguity, obstruction, misleading and fraudulent information, facilitated by plaintiffs and other above stated third parties in a coordinated effort to deny consumers access to this relevant information and documentation if it does in fact even exist in reality. I am told it is only a denial of my rights of due process if plaintiffs dont supply that information to the court but how would the average consumer compel that response without legal counsel? This is not justice, fair or the spirit of the law in securing consumers due process in defending themselves, particularly with regard to proper foreclosure defense. We have discovered in this process, issues of material fact, and much to our surprise, that a XXXX cancellation of debt, issued by XXXX XXXX and the IRS that PNC bank was aware of, was not properly applied. In fact it was not applied at all from what we have found. We assume since the 1099-C was issued by the IRS, that the owners of the loan at that time PNC Bank or XXXX XXXX XXXX XXXX that all parties must have been and should have been aware of this cancellation of debt issued by the XXXX XXXX XXXX were used as a tax write off for the bank but were not properly, if at all, applied to our loan, but were realized by PNC BankXXXX XXXX  And then later benefited from selling the loan to other parties. Therefore, there are tens of thousands of dollars of cancelled debt that were NOT applied by PNC or XXXX to our account and is therefore missing from our account while PNC, who owned both our 1st mortgage and HELOC loan, having committed grave origination illegalities, dividing and separating what originated as a single loan, when closing both these no doc, interest only loans on the same day. PNC sold our 1st mortgage in XXXX of XXXX. But after the 1st mortgage was sold, the HELOC disappeared completely, only to suddenly resurface in late XXXX after almost 9 years, except for the 1099-C cancellation of debt document that we received in XXXX, 3 plus months after PNC sold our mortgage, leading us to believe the 1099-C had been properly applied to our HELOC which completely disappeared off the radar at that same time. PNC stated in recordings to me, that they discharged our HELOC in XXXX, when they sold our 1st mortgage at that same time, then subsequently cancelled our HELOC, BURIED IT WITH NO COMMUNICATIONS TO US, sold our loans to other companies, then got it back, discharged it again due to the statute of limitations in XXXX of XXXX, then sold this HELOC again, after 2 discharges and 1 cancellation of the debt, THEN SOLD IT in late XXXX, AND ALL THE WHILE HAVING NOT PROPERLY APPLIED THE CANCELLATION OF DEBT ISSUED BY 2 FEDERAL AGENCIES. Again, I have all these statements recorded and therefore can be transcribed for you and the court. We have applied for numerous loans over the years, since XXXX when we received the 1099-C cancellation of debt and this loan did not show up on our credit reports and was never mentioned as existing, delinquent, defaulted or as an issue of any kind in the loan application process and granting of the loans. XXXX XXXX XXXX  granted us a home equity loan recently but those funds seem to have been frozen upon the filing of this fraudulent foreclosure complaint, thus damaging, harming and limiting our ability to access those funds for needed repairs on our home, and crippled our financial planning in preparing for our retirement WHICH WE BELIEVE CLEARLY CREATES DOCUMENTED LIABILITY FOR THOSE FILING THIS FRAUDULENT COMPLAINT AGAINST US AS WELL AS FOR OTHER 3RD PARTIES. IN CONCLUSION, simply stated, it is easily verified that PNC owned both loans from XXXX, discharged our HELOC, in late XXXX, took the tax write off, was aware of the XXXX XXXX and IRS directed cancellation of debt to our loans, then buried our HELOC, without a word, for 9 years, sold it in late XXXX, and according to recordings I have of our conversations where they stated that they discharged it again in XXXX of XXXX, culminating in their fraudulently discharging our debt multiple times, not properly cancelling and applying the 1099-C cancellation of debt, per XXXX XXXX & IRS, 2 federal agencies directives, and then illegally and fraudulently selling this debt 12 years later. Just in the last year or so we have heard from 2 different law firms, and 3 different collection agencies and servicers on the same cancelled debt including different amounts due and different interests rates, no payment histories to support their false claims of how much is owed and as to who has the right to collect these differing amounts and we are relatively sure there were 2 or  more collection agencies trying to collect on the same debt and with different amounts required. Further, PNC was pursuing foreclosure while we were trying to work out a modification and mediation which we know is highly illegal. The statute of limitation in Ohio is now based on retroactively applied changes made in XXXX establishing it as 6 years for promissory notes and/or loan documents that function as promissory notes which makes this note time barred in Ohio. 

4. What company is this complaint about? XXXX XXXX XXXX XXXX. Foreclosure complaint This complaint involves XXXX XXXX, National City Bank, the loan originators in XX/XX/XXXX, until XXXX when they merged with PNC, then it sold to U.S Mortgage XXXX XXXX, XXXX XXXX XXXX XXXX, then to XXXX XXXX XXXX XXXX. Because no proper due diligence was done these were improperly transfers of this fraudulent, defective and illegal loan in between PNC and XXXX XXXX XXXX, but XXXX XXXX XXXX filed the foreclosure complaint via XXXX XXXX  XXXX, attorneys for plaintiffs, XXXX XXXX XXXX, and XXXX XXXX XXXX, XXXX XXXX  XXXX XXXX. XXXX XXXX XXXX, Ohio, XXXX. XXXX XXXX, XXXX, who signed the complaint is no longer with that firm and so our certified mail, addressed to both attorneys has been returned to us, leaving us as pro se attorneys wondering who, what, if, when and how this complaint is moving forward and if our efforts to defend ourselves are being ignored, subjugated, invalidated, lost, or dismissed???? Servicers ; XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 5. Who are the people involved. XXXX XXXX XXXX XXXX XXXX XXXX -- attorneys for plaintiff below XXXX, Ohio, XXXX XXXX XXXX XXXX XXXX ( XXXX ) XXXX XXXX, XXXX ( XXXX ) 6. What we are requesting : A full investigation into this highly irregular, very likely fraudulent and documented foreclosure action based on issues of material fact. All document relating to this complaint from all parties listed in this complaint to include but are not limited to the following which plaintiffs would be required to have to properly support claims alleged in this complaint. Judgement from the court against defendants dated XX/XX/XXXX with all relevant documents and complete payment and billing statements to support claims of XXXX owed dating from XX/XX/XXXX to present- XX/XX/XXXX as alleged in the complaint. All annual statements, banking records and documents from any person or company that engaged in any way with the origination, processing, taking of payments, collections, servicing, or ownership of this loan from origination to the present XX/XX/XXXX Plaintiffs, legal counsels licensing to represent out of state companies in collecting debts here in Ohio. XXXX XXXX XXXX XXXX, licensing and proof of standing to pursue out of state legal actions including foreclosure actions here in Ohio Provide any and all relevant information and documentation, dates and names of all parties engaged in the origination, processing, taking of payments, collections, transfers, assignments, allonges or ownership to support and document allegations asserted in plaintiffs foreclosure complaint, which any reasonable person would assume the plaintiffs would have in their possession in order to support any legitimate, legal and proper complaint to facilitate due process rights of pro se defendants and justify just cause via plaintiffs required due diligence, respect for this process and burden of proof clearly required by the law and the spirit of the law. 

7. In Conclusion : We believe plaintiff purchased a illegitimate, non transferable, corrupted and defective instrument, defunct, compromised and therefore voided loan that has multiple legal issues creating issues of material fact that excludes them from having any standing to buy, sell, attempt to collect or take any legal action involving this loan, not the least of which is the lack of documentation due to its age and compromised and corrupted history and if this is not the case please provide full documentation to satisfy what the law would require as your burden of proof of your allegations in this complaint. Plaintiffs cant explain, much less prove to a judge and / or jury, beyond a reasonable doubt how the legitimacy, accuracy, intentions, timeliness, legality, procedural integrity, payment history, 1099-C Cancellation of debt failures, and other issues of material fact documented throughout the history of our loan/loans that seem to be undertaken to, and resulting in, gross nonfeasance, malfeasance and misfeasance repeatedly harming defendants and their ability to defend themselves. Our documents will prove, gross neglect and malfeasance as plaintiffs and other 3rd parties involved, lack of due diligence resulted in manipulation and corruption of the loans originations, randomly dividing the loan into pieces on what was intended to be a single loan from its inception, transfers, their failure to properly notify us about transfers, we believe fraudulently, with the probable intent to intentionally mislead, evade, generally create ambiguity, omit and obscure material information designed to intentionally hide information and tracking of the loan by pro se defendants and therefore did harm defendants due process rights in their attempts to properly defend themselves in this foreclosure complaint. It is clear that the illegal mishandling of this loan has been institutionalized throughout the lending, ownership and servicing process, creating an incentive to discourage transparency and accountability for consumers and homeowners, for which the entire system was designed to properly serve and protect as the final stakeholder and end user of the transaction! Therefore further investigation is necessary and wanting in this familiar practice attempted by large private banks to defraud homeowners and consumers through an unnecessarily and overly burdensome process to illuminate the issues, facts and relevant documents to resolve this issue outside of court if possible or through the legal system if necessary, therefore seriously harming and damaging homeowners and consumers legal rights of due process and self defense as in the case of my family as pro se defendants. In the clear light and spirit of the law this complaint should and must, be thoroughly investigated to ensure transparency, accountability and fairness to support homeowners and consumers to be sure the burden of proof is illuminate for the homeowner and consumers benefit, as a last resort and recourse as pro se defendants, to further attain and help confirm the truth and facts as required for justice to be served in deed, in law, in process and in the spirit of accountability in hopefully moving the law forward for many future outcomes, and as the law requires in order to find a fair, accountable and just outcome for the parties involved and for those who it can help to protect in the future. We believe plaintiff purchased a illegitimate, non transferable, corrupted and defective instrument, defunct, compromised and therefore voided loan that has multiple legal issues creating issues of material fact that excludes them from having any standing to buy, sell, attempt to collect or take any legal action involving this loan, not the least of which is the lack of documentation due to its age and compromised and corrupted history and if this is not the case please provide full documentation to satisfy what the law would require as your burden of proof of your allegations in this complaint. In recent years events clearly shows the corrupt culture of the national banking system and the damage repeatedly done to consumers and to the economy as a whole. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX, Ohio, XXXX XXXX XXXX XXXX