Consumer complaint received 2017-08-09
Product: Debt collection — Mortgage debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: SELECT PORTFOLIO SERVICING, INC. (CA)

Complaint:
Here is how we believe SPS violated the law and why we request your assistance. SPS engaged in deceptive debt collection practices by : o the use of language in its appeals processing that confuses and misleads consumers ( us ), and resulted in in material harm in the form of loss of viable home retention options. SPS falsely claims that in the letter dated XX/XX/XXXX, they informed us that our appeal was denied ( enclosed ). Because of the language used ( or rather not used ) we didnt realize that SPS denying out appeal. o SPS is in violation of the law by pursuing foreclosure without complying with all the conditions required by law which requires among other things that the borrower reject all loss mitigation offers. SPS offered false claims that we refused the loan modification offer. In a letter dated XX/XX/XXXX ( enclosed ), SPS states they withdrew the loan modification offer. Legally, to pursue foreclosure, the certain conditions must be met which were not met in our situation -the servicer informs the borrower that the borrower is not eligible for any loss mitigation option. That has not happened, we are eligible for loss mitigation options, to wit, a loan modification ( which we were offered ) and/or short sale -the borrower rejects all loss mitigation offers. We have not rejected any loss mitigation offers. To the contrary, we have and are still requesting them. -the borrower fails to comply with the terms of a loss mitigation option such as a trial modification. We believe we are in compliance with the terms of the loss mitigation option as the right to appeal/request for information is a term of the loss mitigation offer and we dont believe our appeal has/was been legally resolved/formally denied. If we failed to comply it is due to not understanding the language of the communication. My husband and I both have graduate degrees so its not like we had reading or comprehension difficulties. But a notification of appeal denial that does not contain the words appeal, denial or notification is easy to misunderstand. We ask that CFPB investigate our claim that SPS has engaged in, intentionally or unintentionally, deceptive debt collections practices with regards to handling of our appeal of their loan modification evaluation process. We assert that if that process had been handled properly, we would not be in immediate peril of foreclosure ( sale date XX/XX/XXXX ) To date, we have not received any communication from SPS in regards to our formal written appeal that contained the words appeal and denied, However the XX/XX/XXXX letter that SPS claims as an appeal denial never uses the words appeal or denial '' and bears no resemblance to any appeal notifications we have ever seen. Our confusion regarding the status of our appeal is directly responsible for our failure to promptly respond in a way that could have salvaged the loan modification process. We ask that you/your office also investigate SPSs appeal processing procedures in general to determine whether SPS documentation, communications, language or procedures are sufficiently clear, concise and understandable or, unnecessarily vague, ambiguous and misleading resulting in errors that has could cause homeowners like us to lose our homes.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation