Consumer complaint received 2025-07-20 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Freedom Mortgage Company
State: CA

Complaint narrative:
This demand letter provides a thorough summary of events : To Whom It May Concern : This letter constitutes a formal demand under the Fair Credit Reporting Act ( FCRA ) and the Real Estate Settlement Procedures Act ( RESPA ) regarding Freedom Mortgages inaccurate reporting of 30-day late payments for XXXX and XX/XX/year> on the above-referenced mortgage account. 

This matter has been escalated repeatedly via written communication, supporting documentation, and telephone calls including calls with representatives XXXX ( # XXXX ) and XXXX ( # XXXX ). Despite my good-faith efforts and Freedom Mortgages acknowledgment of internal errors ( including reversal of late fees and confirmed account standing ), you have continued to report inaccurate information to the credit bureaus. As a direct result, I have suffered material financial harm, including a XXXX point drop in my credit score and the potential loss of a {$25000.00} escrow deposit. 

I. Summary of Facts In XX/XX/year>, I submitted an online autopay bank change from XXXX XXXX XXXX XXXX  XXXX 

The Freedom Mortgage portal failed to capture this change, resulting in misapplied or rejected payments for XXXX and XXXX. 

I submitted multiple payments from my XXXX account which had sufficient funds and contacted representatives immediately upon learning of the issue. 

Your agents confirmed my account was current in XXXX and reversed associated late fees. 

Nevertheless, two 30-day late payments were reported to XXXX XXXX XXXX XXXX resulting in a catastrophic drop in my credit score during escrow. 

Your XX/XX/year> XXXX of Mortgage ( VoM ) reflects only one late payment creating a direct contradiction with the bureau data.

As of today, Freedom Mortgage refuses to issue a clarification letter, despite this discrepancy and a clear factual basis under FCRA for correcting or explaining the reporting. 

II. Applicable Law Fair Credit Reporting Act ( FCRA ) : 1681s2 ( a ) ( 1 ) ( A ) : Furnishers must not report inaccurate information.

1681s2 ( b ) : Upon notice of dispute, furnishers must : Conduct a reasonable investigation, Review all relevant information provided by the consumer, Correct or delete any inaccurate, incomplete, or unverifiable information, Report results to credit bureaus. 

Real Estate Settlement Procedures Act ( RESPA ) : 12 U.S.C. 2605 ( e ) : Requires mortgage servicers to investigate and correct servicing-related errors, including payment processing and system malfunctions. 

Freedom Mortgages refusal to issue a clarifying statement or reconcile internal vs. external records constitutes a failure to investigate, and may rise to willful noncompliance actionable under FCRA 1681n/o.

III. Damages Already Incurred A credit score drop of more than XXXX points, confirmed across all three bureaus. 
Threat of failed escrow and loss of {$25000.00} earnest deposit on a pending home purchase.

Emotional and reputational harm. 

Hours of time, resources, and documentation spent trying to resolve a preventable system error. 

IV. Formal Demand You are hereby formally requested to, no later than XXXX XXXX  XXXX, XX/XX/year> : Issue a letter on Freedom Mortgage letterhead ( PDF or scanned ) stating : That the May and/or XX/XX/year> late payments may have resulted from a technical error related to online autopay setup ; That the account is currently in good standing ; That the matter is under formal review or dispute. 

Update credit reporting to reflect the dispute under FCRA 1681s2 ( a ) ( 3 ) if you decline to issue corrections.

V. Notice of Intent to Litigate If Freedom Mortgage fails to comply with this demand by the stated deadline, I will proceed with : A formal complaint to the Consumer Financial Protection Bureau ( CFPB ) Enforcement Division ; A complaint with the Office of the Comptroller of the Currency ( OCC ) ; A complaint with my state financial regulator ; Initiating legal proceedings seeking actual, statutory, and punitive damages under FCRA and RESPA, including reimbursement for : Credit and loan disruption Emotional distress Loss of earnest money Legal fees I urge you to resolve this matter in good faith and avoid unnecessary escalation by issuing the simple, clarifying letter I have requested. I am not asking for deletion of valid information, but for acknowledgment of a known internal failure and the factual inconsistency in your own records. 

Please send your response in writing to : XXXX. 

Sincerely, XXXX XXXX XXXX  Account # : XXXX XXXX XXXX  XXXX. 
( XXXX ) XXXX

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