Consumer complaint received 2024-11-06 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Billing problem
Company: JPMORGAN CHASE & CO.
State: CA

Complaint narrative:
What Happened : On XX/XX/2024, I entered into an auto loan agreement with JPMorgan Chase & Co. for an amount of {$59000.00}. Upon reviewing the billing statements, I identified a discrepancy in the balance owed. To address this, I submitted a Notice of Billing Discrepancy on XX/XX/2024, along with a tender of payment using a negotiable instrument, in accordance with UCC 3-419, HJR 192, 31 CFR 328.6, and Public Law 73-10. This payment was made using a negotiable instrument as legally permitted, and my intention was to settle the debt fully with this tender. Despite these actions, JPMorgan Chase has continued to send statements indicating that the amount remains unpaid. 

Additionally, when I originally signed the loan contract, I endorsed it with " WITHOUT RECOURSE, pay to the order of : XXXX XXXX XXXX By : XXXX XXXX XXXX. This endorsement, in line with UCC 3-415 ( b ) ( Qualified Indorsement ), was intended to limit my liability on the loan, transferring liability to the holder without recourse to me personally. However, Chase has disregarded this endorsement by continuing to hold me liable and has not recognized the terms under which the contract was signed. 

After discovering the continued billing issues, I also submitted a Debt Validation Request under 15 U.S.C. 1692g ( FDCPA ), asking for : Proof of the original loan agreement and verification of the amount owed.

Documentation of any assignments or transfers related to the debt.

Validation of JPMorgan Chases authority to collect on the debt, especially in light of my without recourse endorsement and the payment made using a negotiable instrument. 
Chase has not responded to this request with the necessary documentation or validation. Furthermore, Chase has been reporting this debt to credit bureaus without indicating that it is disputed, which I believe violates both the Fair Credit Reporting Act ( FCRA ) and FDCPA : 15 U.S.C. 1681s-2 ( a ) and ( b ) : Chase is required to report accurate information to credit bureaus and to validate the debt before reporting it, especially in cases where there is a dispute.

15 U.S.C. 1692e ( 8 ) : Chase is reporting the debt to credit bureaus without acknowledging the dispute, which is misleading under the FDCPA. 
The continued inaccurate reporting has negatively impacted my credit score, despite my attempts to resolve this matter lawfully. I have made good-faith efforts to address this discrepancy, including submitting payment via negotiable instrument and endorsing the original contract in a way that should release me from personal liability. Chases lack of response, failure to provide validation, and inaccurate credit reporting have caused financial and reputational harm.

Relevant Legal Codes and Definitions : UCC 3-419 : Addresses the endorsement of negotiable instruments, permitting the transfer of liability with a qualified endorsement.

UCC 3-415 ( b ) : Covers qualified endorsements like without recourse, limiting the endorser 's liability.

31 CFR 328.6 : Outlines the use of negotiable instruments in payment.

Public Law 73-10 and HJR 192 : Recognize the use of lawful instruments in payment and debt resolution.

Requested Resolution : I am seeking : Validation of the debt with proper documentation, taking into account the without recourse endorsement and payment made by negotiable instrument.

Removal of all inaccurate or negative reporting related to this debt from my credit report.

Written confirmation from Chase acknowledging the resolution of this discrepancy and acceptance of the terms under which the original contract was endorsed. 
Thank you for your assistance in this matter.

Company response to consumer: Closed with explanation