Consumer complaint received 2025-07-29 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: SELECT PORTFOLIO SERVICING, INC.
State: FL

Complaint narrative:
Consumer Financial Protection Bureau Complaint Letter Servicer : Select Portfolio Servicing , Inc . 
Loan Type : Conventional Fixed Mortgage Issue : Inaccurate Credit Reporting / Mishandled Forbearance Transfer / Trial Modification Reporting Requested Resolution : Correction of tradeline, removal of any delinquency reported for XXXX and XXXX ( if already reported ), cessation of further negative reporting, and a broader investigation into these practices. 

Dear CFPB, I am filing this formal complaint against Select Portfolio Servicing ( SPS ) for inaccurate and damaging credit reporting, mishandling of a natural disaster forbearance transition, and a lack of transparency during a critical period in my life. This issue has caused immense harm to my credit, my ability to purchase a new home, and my peace of mind. 

As Hurricane XXXX approached on XX/XX/XXXX, I flew my daughter to Washington State and back in a single day for safety with family while I remained in Florida, serving as an XXXX XXXX XXXX XXXX XXXX XXXX  for several days. During the storm, I slept on the floor of the XXXX XXXX XXXX XXXX XXXX  When I returned home, I discovered extensive damage : my XXXX was destroyed, the roof was compromised, my electrical system was torn from the house, my air conditioning unit had failed, and I was without power for over a week. All my refrigerated food was lost. I have pay stubs and documentation of the damage. 

In response, I entered a 6-month natural disaster forbearance starting in XX/XX/XXXX, with XXXX XXXX, my servicer since purchasing the home in XXXX. In XXXX, I was granted an extension through XX/XX/XXXX. Ive always taken great care of my creditit was XXXX before this situation, and I had never missed or been late on a payment in my life. Before agreeing to the forbearance, I specifically asked about how it would impact my credit. I was assured, in writing, that no negative reporting would occur during the forbearance or any subsequent workout plan, including a trial modification. I have attached this documentation with this letter. 

In early XXXX, I contacted XXXX XXXX to resolve the forbearance and was told it would take 30 days to review my case. However, on XX/XX/XXXX, I received a goodbye letter stating my loan was being transferred to SPS. That letter explicitly stated that no terms or conditions of my mortgage would change aside from the servicing. Also attached. 

When I reached out to SPS, they told me they had no information yet and would also require up to 30 days to review my account. I called repeatedly and was told everything had been submitted and a plan would be coming. By XXXX, I was growing increasingly anxious. I wanted to make a payment, and when I called I was told the account was in a transition period and they would need 30 days. 

In XXXX, I called again and was told my application had been lost '' and needed to be resubmittedbut that no payment was due yet and I would be contacted. The representative reassured me everything would be fine. I have also submitted call logs for your review. It is also worth noting during this time XXXX XXXX was still calling and working on my forbearance, and it appeared to me I had two active servicers. I have also attached calls from XXXX XXXX as late as XX/XX/XXXX. Then, I finally received a trial modification offer by mail, with the first payment due XX/XX/XXXX. I called again and was told this was a great opportunity and no other options were available. The letter states " congratulations! '' which I find extremely misleading seeing as to how it's basically like filing bankruptcy. Though I was nervous about the unknown final terms, I was assured it was always favorable to the consumer. I expressed my concerns about credit reporting and was told it would not be negative. I expressed by concerns about a higher interest rate and was reassured they are also always favorable to the consumer. I was told the reporting would be the same, which even in the letter it states '' continue to report '' which for me during that time the only thing that would have been continued is, no negative reporting. Based on that, I made the payment on XX/XX/XXXX and gladly enrolled in auto-pay for XXXX and XXXX. 

On or around XX/XX/XXXX, I received an alert from XXXX XXXX that my XXXX XXXX had dropped over XXXX pointsfrom XXXX to XXXX to SPS reporting me as 180+ days delinquent. I was shocked and immediately emailed SPS on XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, and filed disputes with all three bureaus. SPS denied my initial dispute, citing language in the trial modification letter stating they would continue to report the account as delinquent. I had assumed this meant continued no-negative reporting, as had been the case with XXXX XXXX, and XXXX XXXX stated no negative reporting during trial modification and that the terms would remain the same, as stated in the goodbye letter. 

Whats worse is that SPS did not even report it accurately according to their own languagethey did not label it as paying under agreed plan, and instead marked it as 180 days past due in XXXX, the very month I made a payment. They also labeled it in forbearance, which was not true. This language is attached in the SPS dispute resolution letter that also contains the trial modification letter originally sent XX/XX/XXXX. 

This has now blocked me from buying a home for at least two years, according to a mortgage loan officer. I need to relocate due to being in a flood zone and for my daughters school. Ive always taken pride in maintaining flawless credit. This feels like financial ruin, similar to a bankruptcy. I even asked SPS if I could pay off all past due amounts to fix the delinquency retroactively, and they said noonly future reporting could be corrected. They sent a reinstatement letter. 

I resubmitted disputes to SPS and XXXX SPS continues to say the reporting is accurate. However, they changed the past due status from 180 to 120 days, which is still inaccurate. The account remains marked as in forbearance, even though it was not.

Ive since learned that : The Florida CARES Act prohibits negative credit reporting during disaster forbearances. 

Under RESPA, I was protected from negative actions during the 60-day transfer period in XXXX and XXXX. 

The FCRA requires credit reporting to be fair, accurate, and complete. 

Despite all of this, I have never been able to reach the person reviewing my disputeonly call center agents. I have spent countless hours on the phone during this time. SPS has stated they will continue to report me delinquent in XXXX and XXXX even as I make timely payments. They acknowledged XXXX XXXX had different policies, but insisted they involve reporting delinquent if a trial modification is accepted-unless a full reinstatement, repayment plan or payment deferral is chosen. I find this process deeply concerning for consumers who are not informed about the vast difference in how trial modifications are reported compared to other post-forbearance options. This distinction is not explicitly explained, leaving borrowers vulnerable to unintentional and long-term credit damage. I would have never accepted a trial modification had I understood this clearly. 

I believe this practice is harmful, unclear, and unfairespecially for first-time consumers navigating disaster relief. All I did was follow the guidance I was given. I never signed their agreement ; I simply made a payment in good faith to protect my home. I had no idea it would trigger such irreversible credit damage. 

I am asking for : Immediate correction of the mortgage tradeline to reflect paying as agreed or current Retroactive correction of the XXXX tradeline to remove the delinquency and accurately reflect payment as agreed Removal of any delinquency reported for XXXX, if already reported Stopping any further delinquent reporting for XXXX and XXXX A formal investigation into whether SPSs policies align with CARES Act, FCRA, and RESPA A broader review into whether these policies cause undue harm to consumers recovering from disaster In addition to the requests above, I am more than willing to discuss any resolution that could retroactively and futuristically address the damaging reporting. While I believe a courtesy correction is fully warranted given the circumstances, I also want to be clear that I do not believe I should have to pay to fix something that resulted from a process I feel was deeply mishandled and unfair to begin with. 

I would like to propose that when a borrower enters a natural disaster forbearance and complies with any resolution planbe it repayment, trial modification, or defermentno negative reporting should occur, even if the loan is transferred. I plan to raise this issue with the Florida Attorney Generals Office as well, not only for myself, but on behalf of others in similar situations. 

Thank you for your time and consideration.

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