Consumer complaint received 2018-02-12
Product: Mortgage — Home equity loan or line of credit (HELOC)
Issue: Trouble during payment process — 
Company: Fay Servicing, LLC (NY)

I, XXXX XXXX, ( the " Borrower '' ) am the innocent victim of foreclosure fraud perpetrated by XXXX XXXX, XXXX. and abetted by FAY SERVICING LLC. ( the " SERVICER '' ). Current Servicer of record is located at XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX , IL XXXX, ATTN : XXXX XXXX XXXX , VP of Servicing, tel. ( XXXX ). Borrower 's Home Equity Line of Credit ( HELOC ) Account No. is XXXX. 

According to the terms of Borrower 's HELOC contract with Servicer ( successor to XXXX XXXX and XXXX XXXX, XXXX. ) dated and commenced on XX/XX/XXXX, funds to pay for the monthly Periodic Finance Charge ( interest and interest only ) as stipulated by the Automatic Payment Authorization provision in the HELOC contract are to be debited monthly.

This above-referenced debiting from Borrower 's checking account occurred successfully and faultlessly from the HELOC loan 's inception until XX/XX/XXXX, a period of almost eight ( 8 ) years, when the Servicer and its successors put Borrower 's HELOC loan into " default '' status claiming there were insufficient funds in his checking account to pay for that month 's Periodic Finance Charge. On the contrary, Borrower has endorsed XXXX  XXXX, XXXX. deposit slip proof indicating the funds in cash were in Borrower 's checking account per the terms of the HELOC contract each and every month through the present date. Servicer and its successors commenced a fraudulent foreclosure action upon the Borrower without ever providing a truthful and valid reason as to the cause as to why and how there could be insufficient funds in Borrower 's checking account.

The Servicer and its successors never truthfully nor timely nor completely responded to Borrower 's multiple verbal as well as written requests to answer the reason for the insufficient funds. After several years, the Borrower ascertained that the Servicer and its successors illegally and fraudulently debited the Borrower 's checking account to pay a Lender-Placed Flood Policy premium in XX/XX/XXXX. The servicer and its successors never complained before this XX/XX/XXXX date, an approximate eight ( 8 ) year period, that the Borrower was ever not compliant with his flood policy coverage per the terms of the HELOC contract. Instead, the servicer and its successors illicitly debited the Borrower 's checking account.The Borrower demands that the Servicer provide himself and the CFPB, under penalty of perjury, the following in writing, signed and notarized by a FAY SERVICING LLC. officer : a ) Set forth full detailed proof that the Servicer owns the 'DEBT ' or 'NOTE ' (  HELOC Loan No. XXXX ) which it claims the Borrower owes to the Servicer. If so, request is made for the Servicer to produce evidence of such debt in the form of a Promissory Note or other agreement. b ) If the Servicer does not produce such evidence, the Servicer must set forth full detailed proof as to why the Servicer can not produce the above-referenced NOTE.

2 ) The Servicer must set forth full detailed proof of all itemized foreclosure fees, late fees, lender fees, and legal fees accruing to the Borrower 's Fleet Line Agreement HELOC account and set forth full detailed proof that all of these itemized monies were in fact paid by the Servicer and to whom.

3 ) Set forth full detailed proof that the Borrower was offered by the Servicer and its successors a Repayment Plan to cure the so-called default in the Borrower 's Fleet Line Agreement HELOC account. If so, set forth full detailed copies thereof and also, when and by whom from the Servicer and its successors.

4 ) Set forth full detailed proof that the Servicer and its successors has the authority to automatically debit the Borrower 's checking account for any Lender-Placed Flood Policy premiums. Similarly, set forth full detailed proof as to which provision in the Automatic Payment Authorization gives the Servicer and its successors authority to do this without the written approval of the Borrower.

5 ) Set forth full detailed proof that the Servicer acknowledges that the sole entire reason for the Borrower 's default is the non-payment of the above-referenced Lender-Placed Flood Policy premium resulting in the Servicer and its successors causing insufficient funds in Borrower 's checking account.

6 ) Set forth full detailed proof of the Borrower 's consumer authorization to the servicer and its successors, excepting the monthly Periodic Finance Charges, as payment for all other miscellaneous charges as governed by the Electronic Funds Transfer Act of 1978 to be debited in full by the Borrower 's Automatic Payment Authorization feature in the Borrower 's HELOC contract with the Servicer and its successors.

7 ) a ) Set forth full detailed proof that the individual Lender-Placed Flood Policy premiums were sent yearly to the Borrower for payment from XX/XX/XXXX through the present date. 
b ) Set forth full detailed proof that the Borrower was sent a copy of the billing notice that the Lender-Placed Flood policy premium payment was due the Servicer and its successors and for what amount for each year from XX/XX/XXXX through the present date. 

8 ) Set forth full detailed proof as to what specific charges accumulate in the Fleet Line agreement HELOC closing costs at end of term when a " Net-to-Close '' figure is provided by the Servicer to the Borrower. 

9 ) Set forth full detailed proof of the Servicer and its successors producing the Securitization of the Borrower 's Fleet Line Agreement 'NOTE ' in its entirety tracing any change in transition from the date of the original closing, XX/XX/XXXX, through the present date. 

After the full, detailed, truthful answers to each and every demand made above, the Borrower is prepared to pay the Servicer the full sum of all the Periodic Finance Charges accruing to the Borrower 's HELOC loan since XX/XX/XXXX through the present date. This sum will rightfully be paid to the Servicer, after this fraudulent foreclosure procedure is legally withdrawn and the Borrower 's credit standing is subsequently restored because of the Servicer and its successors ' blatant error in bringing this frivolous foreclosure proceeding in the first place with full reinstatement of the Borrower 's Home Equity Line of Credit as per the original terms of this contract.