Consumer complaint received 2025-05-01 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Struggling to pay mortgage — Foreclosure
Company: Fay Servicing, LLC
State: MD

Complaint narrative:
COMPLAINT TO THE CONSUMER FINANCIAL PROTECTION BUREAU ( CFPB ) Regarding : XXXX XXXX, Fay Servicing LLC, and Associated Mortgage Servicing Issues in Bankruptcy Case I. COMPLAINT SUMMARY I am filing this complaint against XXXX XXXX and Fay Servicing LLC due to possible violations of federal consumer protection laws related to mortgage servicing, failure to validate debt, and unclear creditor ownership. These actions arise in connection with my ongoing XXXX XXXX XXXX  case in the XXXX XXXX XXXX The Court has knowledge of significant issues concerning the standing of these parties to enforce the security interest associated with my mortgage, and I believe their conduct constitutes violations of several federal consumer protection laws. 

II. BACKGROUND AND RELEVANT FACTS Involvement of Parties : The parties involved in this case are XXXX XXXX, the alleged creditor, and Fay Servicing LLC, the alleged servicer of my mortgage. The issue stems from their failure to substantiate their claims of ownership and enforceability of the debt. 

XXXX XXXX XXXX XXXXXXXX : The bankruptcy court has expressed concern about the validity of the mortgage debt and standing to enforce the security interest. Despite this, XXXX XXXX objected to the confirmation of an amended XXXX  XXXX plan without providing proper documentation or clarity on its role as creditor. 

Failure to Provide Valid Documentation : Despite numerous requests, XXXX XXXX and Fay Servicing have failed to produce a complete chain of assignments of the promissory note and deed of trust, clear evidence of their standing to collect the debt, and sufficient documentation of their claim as the rightful creditor. 

Federal Consumer Protection Violations : Their failure to provide the requested validation and documentation of debt raises concerns of potential violations of the Fair Debt Collection Practices Act ( FDCPA ), Fair Credit Reporting Act ( FCRA ), Truth in Lending Act ( TILA ), and the Gramm-Leach-Bliley Act ( GLBA ). These violations are compounded by their lack of transparency regarding creditor identity and their failure to follow proper legal procedures. 


IV. VIOLATIONS OF LAW Below are the key consumer protection laws and legal standards under which these parties may have violated my rights : Fair Debt Collection Practices Act ( FDCPA ) 15 USC 1692g : Failure to validate the debt upon request, including providing documentation of the debt, identity of the creditor, and chain of assignments.

Fair Credit Reporting Act ( FCRA ) 15 USC 1681 : Misreporting or furnishing inaccurate information to credit bureaus, potentially violating provisions related to consumer rights in credit reporting.

Truth in Lending Act ( TILA ) 15 USC 1666 : Failure to properly disclose changes in creditor identity, failure to provide required notices or statements, and potentially misrepresenting loan terms.

Gramm-Leach-Bliley Act ( GLBA ) 15 USC 6801/6802 : Possible privacy violations in relation to data handling or unauthorized disclosure of sensitive personal financial information.

Uniform Commercial Code ( UCC ) Article 9 9-102 : The lack of clear documentation regarding the assignment of consumer obligations and the validity of the security interest. 

V. STATEMENT OF FACTS AND ARGUMENTS Failure to Validate Debt and Document Ownership : XXXX XXXX and Fay Servicing have not provided adequate proof of their claim. This includes failing to provide a chain of assignment for the promissory note and deed of trust, leaving doubts as to their legal standing to enforce the debt. 

Denial of XXXX XXXX Process in Mediation : In my attempts to resolve the foreclosure through mediation, I was denied a fair opportunity to participate due to health reasons. Despite submitting medical documentation to support my request for postponement, the court proceeded with the mediation, which adversely affected my ability to protect my rights. 

Fay Servicings Unreasonable Demands : Fay Servicing demanded a reinstatement amount of approximately {$20000.00}, which I am actively trying to pay. However, their demand for the full foreclosure price of approximately {$92000.00} is unreasonable given the statutory provisions under XXXX XXXX XXXX and the possibility of reinstatement. 

Legal Standing to Foreclose : I believe that Fay Servicing has not perfected its security interest in the property and, thus, lacks standing to pursue foreclosure or eviction. Without proper documentation, I question whether the note and mortgage are validly recorded.

Company response to consumer: Closed with explanation