Consumer complaint received 2024-05-02 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: PENNYMAC LOAN SERVICES, LLC.
State: AZ

Complaint narrative:
By : XXXX XXXX XXXX BENEFICIARY without recourse XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX PennyMac Loan Services XXXX XXXX XXXX and XXXX are reporting inaccurate information on my Consumer Report. PennyMac Loan Services and their subsidiaries discharged my mortgage XX/XX/XXXX, and have failed to report my account # XXXX as paid in full, never late. The discharged amount is in {$360000.00}. 


Section 602 ( a ) ( 4 ) of Title VI of the Consumer Credit Protection Act states that Congress made the following findings : There is a need to insure that consumer agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumers right to privacy.

Section 602 ( a ) ( b ) of Title VI states : It is the purpose of this title to require that consumer reporting agencies adopt reasonable procedures for meeting the needs of commerce for consumer credit, personnel, insurance, and other information in a manner which is fair and equitable to the consumer, with regards to the confidentiality, accuracy, relevancy, and proper utilization of such information in accordance with the requirements of this title. 
As you can see here, there is a need to protect my right to privacy. PennyMac Loan Services, XXXX, and XXXX are in violation of this provision as my right to privacy has clearly been disregarded and reported on my consumer report. 

PennyMac Loan Services, XXXX, and XXXX are also in violation of section 603 ( d ) ( 3 ) ( a ), which states : The term consumer report does not include any report containing information solely as to transactions or experiences between the consumer and the person making the report. 
This means PennyMac, XXXX, and XXXX are not allowed to report my Transaction history in any capacity as they currently are under Payment History located on my Consumer Report. Reporting my transaction history is illegal. 
Furthermore, section 604 of Title VI under Permissible purposes of report states : A consumer reporting agency may furnish a consumer report under the following circumstances and no other : ( 1 ) In response to the order of a court having jurisdiction to issue such an order. 
( 2 ) In accordance with the written instructions of the consumer to whom it relates. 
There is currently no court having jurisdiction issuing an order for my consumer report to be furnished that I am aware of, nor have I given PennyMac, XXXX, or XXXX any written, non-written, verbal, non-verbal, or any other sort of instruction to furnish my consumer report. As per Title 12 CFR 1022.3 ( h ) pg 396 - Identity Theft means a fraud committed or attempted using the identifying information ( name, social security number, date of birth, official state or government issued drivers license or identification number, alien registration number, government passport number, employer or taxpayer identification number ) of another person without authority. Meaning anything added to my Consumer Report without my written consent could be considered Identity theft. 

In regards to PennyMac Loan Services, XXXX, and XXXX reporting my transaction history and adverse action, Section 605 ( a ) ( 5 ) of Title VI confirms that any adverse item of information may not be reported on my Consumer Report. It states : ( a ) Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information : ( 5 ) Records of arrest, indictment, or convictions of crime which, from date of disposition, release, or parole, antedate the report by more than seven years. 
AS you can see PennyMac Loan Services, XXXX, and XXXX are all in violation of this provision as no adverse items other than conviction of crime, arrest, or indictment should be reported on my Consumer Report. Any derogatory mark such as 11 Late Payments is illegal and not allowed on my consumer report and is yet another violation of this provision of Title VI of the Consumer Credit Protection Act. 

PennyMac Loan Services, XXXX, and XXXX are not maintaining reasonable compliance procedures to insure maximum accuracy of information pertaining to my Consumer Report. Section 607 ( a ) states : Every Consumer reporting agency shall maintain reasonable procedures designed to avoid violations of section 605 and to limit the furnishings of the consumer reports to the purposes listed under section 604. These procedures shall require that prospective users of the information identifying themselves, certify the purposes for which the information is sought, and certify that the information will be used for no other purpose. Every consumer reporting agency shall make a reasonable effort to verify the identity of a new prospective user and the uses certified by such prospective user prior to furnishing such user consumer report. No consumer reporting agency may furnish a consumer report to any person if it has reasonable grounds for believing that the consumer report will not be used for a purpose listed in section 604. 
( b ) Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. 
By violating section 604 for Permissible purposes for report and section 605 for Obsolete Information PennyMac Loan Services, XXXX, and XXXX are in violation of these compliance procedures under this title. 

Section 616 Civil Liability for willful noncompliance states : Any consumer reporting agency or user of information which willfully fails to comply with any requirement imposed under this title with respect to any consumer is liable to that consumer in an amount equal to the sum of - ( 1 ) any actual damages sustained by the consumer as a result of of the failure ; ( 2 ) such amount of punitive damages as the court may allow Furthermore 15 USC 1681 ( n ) elaborates damages not less than {$100.00} and not more than {$1000.00} or ; in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or {$1000.00}, whichever is greater. 
PennyMac Loan Services, XXXX, and XXXX have all been in violation of section 616 for willful noncompliance as I made a CFPB report on XX/XX/XXXX. Report numbers XXXX, XXXX. These CFPB reports are proof of claim that they are fully aware and breaking the law. 
Section 623 of 15 USC 1681s-2 ( a ) of the Fair Credit Reporting Act states : Duty of the Furnishers of Information to Provide Accurate Information ( 1 ) Prohibition ( A ) Reporting information with actual knowledge of errors. A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.

( B ) Reporting information after notice and confirmation of errors. A person shall not furnish information relating to a consumer to any consumer reporting agency if ( i ) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and ( ii ) the information is, in fact, inaccurate.

PennyMac Loan Services was notified via their instructions on a phone call that took place on XX/XX/XXXX as well as written via their instruction to write via their message center in their customer portal. I will attach documentation of such a notice labeled Message Center.

Once PennyMac Loan Services was notified of the inaccurate information on my Consumer Report they were Immediately required to stop reporting the information until they can prove its validity. 

Lastly, I am fully aware of the Opt-Out laws in Title 12 CFR 1016 of the Privacy of Consumer Financial Information ( Regulation P ). Section 1016.1 under Purpose and Scope states : ( a ) Purpose. This part governs the treatment of nonpublic personal information about consumers by the financial institutions listed in paragraph ( b ) of this section. This part : ( 1 ) Requires a financial institution to provide notice to customers about its privacy and policy practices ; ( 2 ) Describes the conditions under which a financial institution may disclose nonpublic personal information about consumers to nonaffiliated third parties ; and ( 3 ) Provides a method for consumers to prevent a financial institution from disclosing that information to most nonaffiliated third parties by opting out of that disclosure, subject to the exceptions in 1016.13, 1016.14, and 1016.15.

PennyMac Loan Services owes me a privacy notice before they can legally furnish any of my information to my Consumer Report, to which they have NOT provided me with.

Section 1016.4 Subpart A- Privacy to Opt Out Notice further states : Initial privacy notice to consumers required ( a ) Initial notice required. You must provide a clear and conspicuous notice that accurately reflects your privacy policies and practices to : ( 1 ) Customer. An individual who becomes your customer, not later than when you establish a customer relationship, except as provided in paragraph ( e ) of this section; and ( 2 ) Consumer. A consumer, before you disclose any nonpublic personal information about the consumer to any nonaffiliated third party, if you make such a disclosure other than as authorized by 1016.14 and 1016.15 of this part.

PennyMac Loan Service never provided me with an initial opt out notice and has been furnishing my nonpublic personal information to nonaffiliated third parties such as XXXX and XXXX. 
Moreover, 1016.7 Form of opt out notice to consumers ; opt out methods states : ( a ) ( 1 ) Form of opt out notice. If you are required to provide an opt out notice under 1016.10 ( a ), you must provide a clear and conspicuous notice to each of your consumers that accurately explains the right to opt out under that section. The notice must state : ( i ) That you disclose or reserve the right to disclose nonpublic personal information about your consumer to a nonaffiliated third party ; ( ii ) That the consumer has the right to opt out of that disclosure; and ( iii ) A reasonable means by which the consumer may exercise the opt out right.

( 2 ) Examples ( i ) Adequate opt out notice. You provide adequate notice that the consumer can opt out of the disclosure of nonpublic personal information to a nonaffiliated third party if you : ( A ) Identify all of the categories of nonpublic personal information that you disclose or reserve the right to disclose, and all of the categories of nonaffiliated third parties to which you disclose the information, as described in 1016.6 ( a ) ( 2 ) and ( 3 ) of this part, and state that the consumer can opt out of the disclosure of that information; and ( B ) Identify the financial products or services that the consumer obtains from you, either singly or jointly, to which the opt out direction would apply.

( ii ) Reasonable opt out means. You provide a reasonable means to exercise an opt out right if you : ( A ) Designate check-off boxes in a prominent position on the relevant forms with the opt out notice ; ( B ) Include a reply form together with the opt out notice that, in the case of financial institutions described in 1016.3 ( l ) ( 3 ) of this part, includes the address to which the form should be mailed ; ( C ) Provide an electronic means to opt out, such as a form that can be sent via electronic mail or a process at your Web site, if the consumer agrees to the electronic delivery of information ; or ( D ) Provide a toll-free telephone number that consumers may call to opt out.

( iii ) Unreasonable opt out means. You do not provide a reasonable means of opting out if : ( A ) The only means of opting out is for the consumer to write his or her own letter to exercise that opt out right; or ( B ) The only means of opting out as described in any notice subsequent to the initial notice is to use a check-off box that you provided with the initial notice but did not include with the subsequent notice.

( g ) Time to comply with opt out. You must comply with a consumer 's opt out direction as soon as reasonably practicable after you receive it.

( h ) Continuing right to opt out. A consumer may exercise the right to opt out at any Time.

( i ) Duration of consumer 's opt out direction.

( 1 ) A consumer 's direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically.

I am requesting that PennyMac Loan Services provide me with an adequate form to Opt Out via mail using the XXXX XXXX mailing address listed on my account. Until I receive this Opt Out Notice via mail, this is my current revocation in writing and will remain in effect until PennyMac can provide me with my Opt Out Notice. 

With respect to Public Law 106-102 section 502 Obligations with respect to disclosures of personal information, it states : ( a ) NOTICE REQUIREMENTS.Except as otherwise provided in this subtitle, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 503.

( b ) OPT OUT.

( 1 ) IN GENERAL.A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 504, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option.

I am requesting an explanation of how I can exercise my right to a nondisclosure option as I would like to opt out indefinitely from this point forward.

Section 605 labeled Enforcement states : ( a ) IN GENERAL.This subtitle and the regulations prescribed thereunder shall be enforced by the Federal functional regulators, the State insurance authorities, and the Federal Trade Commission with respect to financial institutions and other persons subject to their jurisdiction under applicable law, I have the right to Opt Out of anything at any time on my Consumer Report and all companies involved must comply as soon as reasonably practicable after I have provided notice. PennyMac Loan Services has provided unreasonable means to Opt Out, so this will serve as written notice to Opt Out.

I am exercising my right to damages per section 616 to {$1000.00} per violation. I demand and expect my monetary compensation to be wired to Routing Number XXXX, Account Number XXXX via the Electronic Funds Transfer Act of 1978. I also expect my account to reflect Paid In Full/Never Late, as well as my credit/fico score to reflect an XXXX immediately.

Company response to consumer: Closed with explanation