Consumer complaint received 2019-03-08
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — 
Company: Specialized Loan Servicing Holdings LLC (CA)

We are being forced to file this Complaint because Specialized Loan Servicing , XXXX, hereinafter referred to as SLS, refuses to abide by the Fair Debt Collection Practices Act, hereinafter referred to as the FDCPA and the California Fair Debt Collection Practices Act, hereinafter referred to as the Rosenthal Act. We took out a loan with XXXX XXXX XXXX on XX/XX/XXXX. Due to a financial hardship in the XXXX of XXXX, we fell behind in our scheduled monthly payments. While in default an Assignment of Deed of Trust was executed on XX/XX/XXXX that purportedly granted all beneficial interest in the debt to XXXX , XXXX . as Trustee for a Trust. At the time this assignment was executed, the debt was contractually due for the XX/XX/XXXX payment. While still in default and due for the XX/XX/XXXX payment, the debt was purportedly transferred or assigned again to XXXX XXXX XXXX XXXX XXXX as Trustee of a Trust. At that time we had no knowledge of these transfers. On XX/XX/XXXX, we received a letter from SLS informing us that the servicing of our debt obligation was being transferred to them effective XX/XX/XXXX. At the time SLS purportedly acquired the mortgage servicing the debt was contractually due for the XX/XX/XXXX payment. Over the past year, we have learned that pursuant to the FDCPA and the Rosenthal Act, SLS and XXXX as Trustee are " debt collectors '' and not " creditors ''. They are threatening and attempting to proceed with a nonjudicial action to dispossess us from our home without the legal right or authority to do so in violation of 15 U.S.C. 1692f ( 6 ) and California Civil Code 1788.17.  Despite numerous letters to them, they have failed to validate the debt and have failed to provide us with any documentation to demonstrate they have the legal ability to attempt to collect the debt, collect the debt, or enforce the power of sale contained in the deed of trust. Although we have taken legal action against them, they have not stopped their collection and enforcement activities. We are filing this Complaint to make the CFPB aware of their wrongful and illegal actions. The California Supreme Court has confirmed that a borrower is not entitled to pay an entity that is without the legal right and authority to collect and is enforce. In California only a creditor, or an agent of the creditor, may attempt to collect a debt or collect a debt and/or initiate and complete a foreclosure action. Based on information and belief, we believe SLS and XXXX are not creditors nor are they representatives of our true creditors. Falsely representing that the foreclosure documents are legal process is prohibited and misleading and is in violation of California Civil Code 1788.16. SLS and XXXX are engaging in acts that are causing substantial harm not only to us but to California consumers and taxpayers. They are continually attempting to collect a debt that is not due or owed to them. Immediate action must be taken to stop them from engaging in unfair competition. Their conduct is unlawful, unfair and deceptive. They are blatantly disregarding the FDCPA and the Rosenthal Act among other federal and state laws they are mandated to abide by. SLS and XXXX are not exempt from abiding by these statutes and must be held accountable for their misconduct.