Consumer complaint received 2021-05-20
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Experian Information Solutions Inc. (CA)

Dispute XXXX was filed against Experian. Despite the other two credit bureaus accepting the boiler-plate release of information authorization, Experian responded on XX/XX/XXXX to the complaint asserting that " there is an unauthorized third party on XX/XX/XXXX. '' Of course, the CFPB is authorized - CFPB is authorized by virtue of the complaint. I sent written authorization via snail-mail to Experian. Experian did not bother to respond. As a result, CFPB closed the case with no option to re-open that specific case file. I submitted the same complaint ( XXXX ) in an attempt to re-open the file. CFPB 's automated system closed the complaint as a duplicate. So, here I am, a third time - Entering a different first paragraph to game their automated system just so my complaint can be heard. Experian didn't make this process easy. The complaint : I do not owe this debt/this debt is not mine. I am requesting that Experien remove the charge-off from my credit report for the following reason ( s ) : DEBTOR HAS NO DUTY OR OBLIGATION TO PAY {$11000.00} TO XXXX XXXX XXXX XXXX [ LENDER ], BECAUSE XXXX XXXX XXXX XXXX, BREACHED AN AGREEMENT BETWEEN DEBTOR AND MERCHANT [ XXXX XXXX XXXX ] IN SATISFACTION OF DEBT ON COLLERATAL, AND BROKE FINANCIAL CONSUMER PROTECTION LAWS IN MARYLAND. 
************************************************************************************************ XX/XX/XXXX DEBTOR PURCHASES VEHICLE FROM XXXX XXXX XXXX BY LOAN FROM XXXX XXXX XXXX XXXX. IN THE AMOUNT OF {$39000.00}. 
PREVIOUS PAYMENT AMOUNT ( XX/XX/XXXX ) : {$620.00} OVERDUE AMOUNT ( NEGATIVE AS OF XX/XX/XXXX ) : - {$620.00} XXXX XXXX MAINTAINS CONSTRUCTIVE OWNERSHIP OF VEHICLE : XX/XX/XXXX - XX/XX/XXXX. ( ODOMETER DISCLOSURE STATEMENT ). 

XXXX XXXX XXXX XXXX REPOSSESSES VEHICLE FROM XXXX XXXX XXXX ON XX/XX/XXXX. 
DATE OF FIRST NOTICE FROM XXXX XXXX XXXX XXXX ( LENDER ) TO XXXX XXXX ( DEBTOR ) : XX/XX/XXXX. 
" We have your vehicle because you broke promises in our agreement. '' " You have the right to redeem your property any time until the property is actually sold. Your property will not be sold at the earliest until 15 days after the date of mailing this notice. '' TOTAL AMOUNT DUE ( XX/XX/XXXX ) : ( - {$620.00} PAST DUE ) + ( - {$62.00} LATE CHARGE ) + ( - {$330.00} REPOSSESSION COSTS ) + ( - {$0.00} OTHER COSTS ) = {$1000.00} DATE " CLOSED '' ON XXXX  CREDIT REPORT : XX/XX/XXXX. 
LENDER RECEIVED A FINAL PAYMENT OF {$690.00} FROM DEBTOR ON XX/XX/XXXX ( 76 DAYS PAST DUE ). 
SALE DATE OF VEHICLE : XX/XX/XXXX. 
LENDER REPORTS A {$11000.00} " CHARGE OFF '' TO CREDIT BUREAUS AGAINST DEBTOR IN XX/XX/XXXX. 
SECOND AND LAST NOTICE FROM XXXX XXXX XXXX XXXX TO XXXX XXXX : POSTMARKED ON XX/XX/XXXX. 

On XX/XX/XXXX, the Debtor and XXXX XXXX XXXX formed an oral agreement that XXXX XXXX XXXX accept possession of Debtor 's vehicle ( collateral ) to satisfy any debt entirely. Both parties signed the odometer disclosure statement in compliance with state and federal regulations requiring such disclosure upon transfer of ownership of the vehicle. XXXX XXXX XXXX, an agent, and franchisee of the XXXX XXXX XXXX, proposed to accept Debtor 's offer to transfer the vehicle in satisfaction of the debt. Merchant and Debtor conditioned the satisfaction of the debt on the Lender 's receipt of all collateral. Merchant received the vehicle from Debtor in consideration of debt satisfaction. The Lender and Merchant did not send an authenticated notice of objection to the Debtor. The Debtor asserts that XXXX XXXX XXXX owes Lender {$11000.00}, including the {$330.00} fee for self-help repossession, to be paid to XXXX XXXX XXXX XXXX because XXXX XXXX XXXX had constructive ownership of the vehicle for 20 days before XXXX XXXX XXXX XXXX used self-help to repossess the vehicle. 

On XX/XX/XXXX, Maryland XXXX XXXX XXXX issued executive order number XXXX ( the " Order '' ). The Order states : III. Prohibition on Certain Repossessions. 
To the extent [ that ] any statute, rule or regulation of the State of Maryland or any political subdivision would permit a Lender to repossess any automobile, truck, or XXXX XXXX by self-help ( including, without limitation, CL 9-609, 12-115, 12-624, 12-1021, or 14-2008 ), such statute, rule, or regulation is hereby suspended until the state of emergency is terminated and the catastrophic health emergency is rescinded. 
The Debtor transferred the vehicle, title, and car keys and signed the odometer disclosure statement authorizing the vehicle transfer to the Merchant through their agent, XXXX XXXX, on XX/XX/XXXX, during regular business hours. XXXX XXXX XXXX is bound by their agents transaction because XXXX had both actual and apparent authority to perform the transaction of accepting the vehicle in consideration of the debt. The agent had apparent authority to accept the vehicle because the agent is a car salesperson whose job description includes buying, trading, and selling vehicles. Furthermore, the agent had apparent authority because the Debtor reasonably believed that the agent was a salesperson who acted in the ordinary course of business. Debtor returned the registration and license plates in the after-hours drop-off box at the XXXX  office in XXXX XXXX on XX/XX/XXXX. Between XX/XX/XXXX, and XX/XX/XXXX, XXXX XXXX had constructive possession of the vehicle for 20 days in the Merchant 's sales lot. 

On XX/XX/XXXX, Lender notified Debtor of Lender and the intention of XXXX XXXX XXXX to constructively breach the prior agreement for {$330.00} to move the vehicle XXXX miles from XXXX XXXX, located at XXXX XXXX XXXX, XXXX, MD XXXX ( XXXX XXXX ), to XXXX XXXX XXXX, located at XXXX XXXX XXXX XXXX XXXX, MD XXXX. 19 days before the vehicle was moved 51.5 miles, Debtor had already taken the most direct route to return the registration and license plates to the XXXX in XXXX XXXX only 4.5 miles away from XXXX XXXX XXXX. 

XXXX XXXX XXXX accepted responsibility for Debtor 's vehicle by maintaining constructive ownership per the agreement for 20 days. The Debtor believed in good faith consumer lending by trusting XXXX XXXX to accept the vehicle in satisfaction of all debts. The attempt to charge Debtor additional fees after the transfer was an attempt by the Lender to bind Debtor to a contract Debtor did not accept. Without consideration, Debtor has no obligation or duty to enter into a separate agreement to pay for any costs after the transfer between the Debtor and Merchant was complete. XXXX XXXX XXXX XXXX 's attempt to collect repossession fees from Debtor without providing a Discretionary Notice to Debtor before using self-help to repossess the vehicle from XXXX XXXX XXXX is fraudulent. 

The Lender improperly filed a late Notices of Sale or Post-Sale Accountings. The Lender did not notify the Debtor of the time and place of a public sale or the date after which the collateral would be sold in a private disposition ( U.C.C. 9-613 ( 1 ) ( E ) ). A secured creditor is generally deemed to have given reasonable notice if the secured Lender provides at least ten days ' notice of the sale to the Debtor and other interested parties. The purpose of the notice is to provide the Debtor and other interested parties with an opportunity to : 1 ) Monitor the disposition of the collateral ; 2 ) Purchase or redeem the collateral ; and 3 ) Demand any surplus proceeds recovered from the sale. The Lender did not notify the Debtor in writing of the sale 's time and place, at least ten days before the sale. 

The vehicle was sold at auction on XX/XX/XXXX. The Lender gave Debtor notice of the sale on XX/XX/XXXX. According to the Required Notice rules, the Lender did not provide Debtor with a 15-day window that Debtor had a chance to redeem or reinstate the contract. The Lender did not notify Debtor of the date and location of the sale in writing, via certified mail, with return receipt requested, to the Debtor 's last known address by XX/XX/XXXX. At least ten days before the sale, the credit grantor shall notify the consumer borrower in writing the sale 's time and place, by certified mail, return receipt requested, sent to the consumer borrower 's last known address. XXXX  XXXX. XXXX Code 12-1021 ( j ) ( 1 ) ( ii ) ( XXXX ). 

The Lender did not attempt to notify the Debtor of the sale 's time and place. Only after the sale did the Lender notify the Debtor that the sale had occurred. The Lender sold the vehicle to another dealership in Virginia on XX/XX/XXXX, and notified Debtor on XX/XX/XXXX, of the sale 29 days after proper notice should have been sent to Debtor on XX/XX/XXXX. The Debtor had no opportunity to purchase the vehicle at auction because the Lender did not notify the Debtor that the sale would occur at a specific time and place. As a result, Lender 's reluctance to provide reasonable notice creates liability against the Lender for any loss created by the Lender 's improper notice. 
The vehicle held the greatest value at XXXX XXXX XXXX. Under U.C.C. Article 9 Secured Party Sales, the repossessed vehicle 's sale must be accomplished in a commercially reasonable manner. The Lender moved the vehicle from XXXX XXXX XXXX where it was purchased by the Debtor a year before. The vehicle was advertised online by XXXX XXXX XXXX before Debtor purchased the vehicle in XXXX. To maximize and hasten the vehicle 's resale, the Lender would normally have auctioned the vehicle at the same dealership, which was XXXX XXXX XXXX. The surrounding community is likely to have recognized the vehicle sold at the same dealership the year prior. The Lender did not sell the collateral in the most recognized market where the collateral is customarily sold and did not take reasonable steps to maximize profit on the sale. The dealership was most readily able to resell the vehicle without additional moving costs to the parties with a vested interest. The vehicle was sold at auction on XX/XX/XXXX, to XXXX XXXX, located at XXXX Towlern Place Sterling, VA XXXX, which was closer to XXXX XXXX of XXXX at 37.3 miles than to XXXX XXXX XXXX at 64.6 miles. The vehicle would have traveled less distance at no extra cost if the vehicle had simply stayed at XXXX XXXX of XXXX. The Lender 's decision to use self-help repossession to move the vehicle from a mutually convenient place of sale was an avoidable and unnecessary expense that created liability against The Lender for conversion damages and, possibly, punitive damages. 

Debtor asserts that the Lender did not follow established Federal Reserve guidelines for creditors requiring at least 120 days of delinquency before lenders may report a charge-off auto loan at a loss to the Debtors credit report. Lenders accounting reports the charge-off against Debtor as a tax deduction for loss Lender created. The Lender sold the vehicle at auction to a dealer on XX/XX/XXXX, and sent a letter ( Application of Proceeds Upon Resale of Repossessed Property Maryland ) to Debtor postmarked XX/XX/XXXX. For a car loan, the Lender must charge off the debt after 120 days without payment. The charge-off was premature because 120 days had not elapsed since XX/XX/XXXX, when the Lender received a wire transfer of {$690.00} from the Debtor. 

The Debtor had no reason to believe a bill of {$11000.00} was due at the earliest until XX/XX/XXXX. The Lender did not attempt to contact the Debtor for 113 days to collect a debt between XX/XX/XXXX, and XX/XX/XXXX. The Lender did not provide Debtor an opportunity to pay the balance due before the Lender made a report to the credit bureaus. The Lender did not give the Debtor 120 days ' notice to settle the debt before the decline in Debtor 's credit score took effect. XXXX XXXX XXXX days after the sale on XX/XX/XXXX, is XX/XX/XXXX. 

The Debtor returned the vehicle to XXXX XXXX XXXX clean, with a full tank of gas, and not showing any indication of needing repair, recondition, or clean-up at the time of return. XXXX XXXX XXXX maintained ownership of the vehicle for 20 days in full satisfaction of all debts. XXXX XXXX XXXX is responsible for any expenses because the condition could have changed during the 20 days the vehicle was in their possession. Any other title fee or sales/administrative costs are also the responsibility of XXXX XXXX for the reasons above. The Debtor demands that the Lender notifies all credit bureaus to remove the " Charge Off '' from Debtor 's credit reports. 

Respectfully, XXXX XXXX