Consumer complaint received 2024-04-03 00:00:00
Product: Payday loan, title loan, personal loan, or advance loan — Installment loan
Issue: Problem when making payments — 
Company: FISERV FINXACT CORE
State: IL

Complaint narrative:
I've sent a instrument of payment to XXXX XXXX who is the trustee for First Data Merchant services and they have rejected my instrument ( paymment ) and are still deducting payments from my Regions bank bank acount daily. According to the Indenture Act of 1939, Section 303, PREFERENTIAL COLLECTION OF CLAIMS AGAINST OBLIGOR it states that ( XXXX ) The term paying agent, when used with respect to any such indenture security, means any person authorized by an obligor thereon ( A ) to pay the principal of or interest on such security on behalf of such obligor, or ( B ) if such security is a certificate of interest or participation, equipment trust certificate, or like security, to make such payment on behalf of the trust. 

This is a billing error and a Notice of Default Opportunity to Cure because they kept the security and have not discharged it.

First Data Marchant is violating federal laws 3-601 1-4. DISCHARGE AND EFFECT OF DISCHARGE. 
Primary tabs ( a ) The obligation of a party to pay the instrument is discharged as stated in this Article or by an act or agreement with the party which would discharge an obligation to pay money under a simple contract.

( b ) Discharge of the obligation of a party is not effective against a person acquiring rights of a holder in due course of the instrument without notice of the discharge. 

XXXX. PAYMENT. 
( a ) Subject to subsection ( b ), an instrument is paid to the extent payment is made ( i ) by or on behalf of a party obliged to pay the instrument, and ( ii ) to a person entitled to enforce the instrument. To the extent of the payment, the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under Section 3-306 by another person.

( b ) Subject to subsection ( e ) a note is paid to the extent payment is made by or on behalf of a party obliged to pay the note to a person that formerly was entitled to enforce the note only if at the time of the payment the party obliged to pay has not received adequate notification that the note has been transferred and that payment is to be made to the transferee. A notification is adequate only if it is signed by the transferor or the transferee ; reasonably identifies the transferred note ; and provides an address at which payments subsequently can be made. Upon request, a transferee shall seasonably furnish reasonable proof that the note has been transferred. Unless the transferee complies with the request, a payment to the person that formerly was entitled to enforce the note is effective for purposes of subsection ( c ) even if the party obliged to pay the note has received a notification under this paragraph. 

( c ) Subject to subsection ( e ), to the extent of a payment under subsections ( a ) and ( b ), the obligation of the party obliged to pay the instrument is discharged even though payment is made with knowledge of a claim to the instrument under Section 3-306 by another person.

( d ) Subject to subsection ( e ), a transferee, or any party that has acquired rights in the instrument directly or indirectly from a transferee, including any such party that has rights as a holder in due course, is deemed to have notice of any payment that is made under subsection ( b ) after the date that the note is transferred to the transferee but before the party obliged to pay the note receives adequate notification of the transfer.

( e ) The obligation of a party to pay the instrument is not discharged under subsections ( a ) through ( d ) if : ( XXXX ) a claim to the instrument under Section 3-306 is enforceable against the party receiving payment and ( i ) payment is made with knowledge by the payor that payment is prohibited by injunction or similar process of a court of competent jurisdiction, or ( ii ) in the case of an instrument other than a cashier 's check, teller 's check, or certified check, the party making payment accepted, from the person having a claim to the instrument, indemnity against loss resulting from refusal to pay the person entitled to enforce the instrument; or ( XXXX ) the person making payment knows that the instrument is a stolen instrument and pays a person it knows is in wrongful possession of the instrument. 

( f ) As used in this section, " signed, '' with respect to a record that is not a writing, includes the attachment to or logical association with the record of an electronic symbol, sound, or process to or with the record with the present intent to adopt or accept the record. 
XXXX. TENDER OF PAYMENT. 
Primary tabs ( a ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument, the effect of tender is governed by principles of law applicable to tender of payment under a simple contract. 

( b ) If tender of payment of an obligation to pay an instrument is made to a person entitled to enforce the instrument and the tender is refused, there is discharge, to the extent of the amount of the tender, of the obligation of an indorser or accommodation party having a right of recourse with respect to the obligation to which the tender relates. 

( c ) If tender of payment of an amount due on an instrument is made to a person entitled to enforce the instrument, the obligation of the obligor to pay interest after the due date on the amount tendered is discharged. If presentment is required with respect to an instrument and the obligor is able and ready to pay on the due date at every place of payment stated in the instrument, the obligor is deemed to have made tender of payment on the due date to the person entitled to enforce the instrument.

According to 12 U.S. Code 83 Loans by bank on its own stock- No national bank shall make any loan or discount on the security of the shares of its own capital stock.

According to 12 U. S. Code 412 Application for notes : collateral required- Any Federal Reserve bank may make application to the local Federal Reserve agent for such amount of the Federal Reserve notes hereinbefore provided for as it may require. Such application shall be accompanied with a tender to the local Federal Reserve agent of collateral in amount equal to the sum of the Federal Reserve notes thus applied for and issued pursuant to such application.

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