Consumer complaint received 2024-12-12 00:00:00
Product: Debt collection — Mortgage debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Freedom Mortgage Company
State: CA

Complaint narrative:
I am filing this complaint against XXXX XXXX, who sometimes acts as CEO of his fictitious company, Freedom Mortgage Corporation ( Freedom Mortgage ), for his unlawful actions in attempting to collect a fraudulent debt, including mail fraud, the use of a fictitious name for extortion, and violations of credit reporting laws. 

On XX/XX/year>, I sent a Cancellation of Loan Agreement correspondence via email. 

On XX/XX/year>, I sent a Notice of Cancellation ( via fax ID : XXXX ). In response, XXXX XXXX XXXX, Freedom Mortgage, sent two validation letters, which included the Promissory Note but failed to include the Allonge to Note. This omission violates legal requirements. The Allonge, which contains the endorsement " Pay to the Order of '' ( i.e., Order to Pay ), converts ( Alter ) the Promissory Note into a draft from the outset under UCC 9-102 ( 65 ) and California Commercial Code 9102 ( a ) ( 65 ) and can not be used as evidence of an outstanding debt, rendering the alleged debt void and unenforceable under UCC 3-407 , and California Commercial Code 3407 XXXX 

Despite this, I sent the following written notices to Freedom Mortgage disputing the debt : XX/XX/year> : Second Notice of Cancellation ( via fax ID : XXXX ). 
XX/XX/year> : Notice of Dispute, Invalid Debt Instrument, and Requirement for Immediate Cancellation and Bill ( via fax ID : XXXX ). 
XX/XX/year> : Notice of Demand for Remedy, and Cease-Desist ( via Web Secured Mail ). 

XXXX XXXX, operating through his fictitious company, Freedom Mortgage, did not provide any valid evidence of the debt and instead continued with their collection efforts despite the clear invalidity of the debt. This indicates an intentional concealment of material facts, using misleading and deceptive practices to misrepresent the debt and avoid addressing the void status of the Promissory Note. 

Moreover, if the Promissory Note has been traded on the market as a financial instrument, I am entitled to any dividends or other financial benefits derived from such trading. Failing to disclose whether the note has been monetized further demonstrates a lack of transparency and fraudulent intent. 

XXXX XXXX actions are in direct violation of the following federal and California debt collection laws, and also involve mail fraud under federal law : Mail Fraud ( 18 U.S.C. 1341 ) 18 U.S.C. 1341 : Makes it a federal crime to use the U.S. mail system to commit fraud, including sending fraudulent communications, documents, or misrepresentations to extort money. 
By using the mail and fax to communicate fraudulent debt collection attempts, XXXX XXXX has committed mail fraud by intentionally deceiving me and attempting to extort funds through the use of misleading and fraudulent documents, including a void Promissory Note. 

Fictitious Name for Extortion ( 18 U.S.C. 1342 ) 18 U.S.C. 1342 : Prohibits the use of fictitious names in any way to commit fraud or extortion. By operating under the name " Freedom Mortgage, '' a company that appears to be legitimate but is in fact fictitious, XXXX XXXX has used a false identity to attempt extortion through fraudulent debt collection. 

California Law California Civil Code 1788.17 : Incorporates the Fair Debt Collection Practices Act ( FDCPA ) into California law, which requires debt collectors to cease collection efforts when a debt is disputed in writing.

California Civil Code 1788.13 ( e ) : Prohibits a debt collector from falsely representing the true nature of the debt or the services being provided by the collector. 
California Civil Code 1788.17 ( XXXX Fair Debt Collection Practices Act ) : Requires debt collectors to comply with the FDCPA and prohibits the use of false or misleading representations in the debt collection process. 
Fair Debt Collection Practices Act ( FDCPA ) Section 809 ( b ) ( 15 U.S.C. 1692g ( b ) ) : Requires debt collectors to cease collection efforts when a debt is disputed in writing.

Section 807 ( 10 ) ( 15 U.S.C. 1692e ( 10 ) ) : Prohibits the use of any false representation or deceptive means to collect or attempt to collect any debt.

Section 807 ( 2 ) ( A ) ( 15 U.S.C. 1692e ( 2 ) ( A ) ) : Prohibits a debt collector from falsely representing the character, amount, or legal status of any debt.

Section 1692g ( 809 ) : Requires debt collectors to validate a debt when it is disputed by the consumer.

Federal Trade Commission ( FTC ) Regulations Violated The actions of XXXX XXXX and Freedom Mortgage also violate various FTC regulations that protect consumers against fraudulent and deceptive debt collection practices. These include : FTC Rule 16 C.F.R. 310.3 ( a ) ( 1 ) : Prohibits the use of false or misleading statements in connection with the collection of a debt, including any attempt to collect an invalid debt. XXXX XXXX attempt to collect on an unenforceable debt using fraudulent documentation directly violates this provision. 
FTC Rule 16 C.F.R. 310.3 ( a ) ( 2 ) ( vii ) : Prohibits the use of misleading representations to collect a debt, including making false statements about the debt or the status of the debt. By sending fraudulent documents ( the Promissory Note without the Allonge ) and continuing to collect on a debt that was converted to an unenforceable draft, XXXX XXXX violated this provision. 
FTC Rule 16 C.F.R. 310.4 : Prohibits harassment or abuse by debt collectors, including threatening legal action without the intent to follow through. Freedom Mortgage 's continuous collection efforts despite my written dispute and the invalidity of the debt amounts to harassment and a violation of this rule. 

Fair Credit Reporting Act ( FCRA ) Violations Additionally, XXXX XXXX and Freedom Mortgage have violated my rights under the Fair Credit Reporting Act ( FCRA ) by failing to accurately report the status of the debt and engaging in improper practices related to credit reporting : Section 1681s-2 ( b ) ( 15 U.S.C. 1681s-2 ( b ) ) : Prohibits furnishers of information ( such as Freedom Mortgage ) from reporting inaccurate information to credit reporting agencies. By continuing to report an invalid debt without evidence and refusing to cease collection activities, Freedom Mortgage has violated this section by submitting inaccurate information to credit bureaus.

Section 1692e ( 8 ) ( 15 U.S.C. 1692e ( 8 ) ) : Under the FDCPA, it is unlawful for a debt collector to communicate or report inaccurate information to a credit reporting agency. This includes reporting debts that have been disputed and found to be invalid.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation