Consumer complaint received 2025-02-14 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Managing the loan or lease — Loan sold or transferred to another company
Company: FORD MOTOR CREDIT CO.
State: MI

Complaint narrative:
XX/XX/year>, I acquired a XXXX XXXX  and XXXX did the promissory note servicing. I used a special indorsement to direct where the funds go and added 'without recourse '. XXXX accepted my payment of this negotiable instrument. 

XX/XX/year> I sent a certified mailing to XXXX XXXX requesting the debt validation paperwork to be sent to me : Pursuant to the Fair Debt Collection Practices Act ( FDCPA ), I am writing to request validation of the alleged debt you are attempting to collect from me. Please consider this letter as a formal notice under 15 U.S. Code 1692g. I am exercising my right to dispute the alleged debt and request proper validation of the alleged debt.

I dispute the validity of this debt, and I request that you provide the following information to validate it : 1. Proof of the original contract or agreement that obligates me to pay the alleged debt. 
2. Evidence of the original creditor 's authorization to the debt collection agency for collecting the alleged debt.

3. A detailed account history showing all charges, payments, and interest accruals that have been made on this account.

4. Evidence that the statute of limitations has not expired on this alleged debt.

5. I require documentation establishing the unbroken chain of ownership and assignment of the alleged debt from the original creditor to your agency, including all relevant contracts, agreements, or sale records.

6. Please provide clarification on whether your agency claims the status of a holder in due course, possessing the right to enforce the alleged debt through legal means as outlined in the Uniform Commercial Code.

7. I request that you provide me with the full contact information of the original creditor, including their name, physical address, telephone number, and any other relevant means of communication, in order to verify the origin and validity of the alleged debt. 
8. Please clarify whether your organization operates as a private entity or a public institution, in order to better understand your legal status and obligations under relevant consumer protection laws.

Furthermore, pursuant to 15 U.S.C. Code 1692c and 6802 of the Gramm-Leach-Bliley Act, I did not give consent for communication and require that you cease all communication with me until such time as I provide my express consent or you provide sufficient validation of the alleged debt. 

XXXX acquiesced. 

XX/XX/year> I sent a certified letter to XXXX with the intent to offset : Fiduciary Responsibility of the Bank As the lending institution, you have a fiduciary responsibility to act in good faith and in a manner consistent with sound banking practices and applicable law. This includes ensuring that all financial transactions are properly documented, all ledger entries are accurately reflected, and that your actions align with both the terms of our agreement and the principles outlined under XXXX ( Uniform Commercial Code ) and XXXX ( Financial Accounting Standards Board ) regulations.

You are expected to : 1. Honor the Offset : Acknowledge the right of the borrower ( myself ) to apply an offset under UCC 3-603 ( Discharge by Tender of Payment ) and UCC 9-404 ( Rights of Obligors ). By doing so, you must apply the offset to reduce the outstanding loan balance in a fair and transparent manner.

2. Account for All Value : Accurately reflect the value derived from my original promissory note or asset as part of your institutions ledger entries, ensuring the integrity of your balance sheet as outlined in FASB ASC 310-10-25 ( Receivables ). 
XXXX. Ensure Proper XXXXger Balancing : It is your responsibility to reconcile both sides of the ledger to ensure that : The asset represented by my promissory note is balanced against the loan liability.

All amounts due and offsets are reflected accurately in your general ledger and financial statements.

Specific Ledger Entries to Be Applied To ensure proper reconciliation, I am instructing you to make the following specific entries in your ledger : 1. Debit Entry for Loan Liability : Debit the vehicle loan liability account for the amount of $ [ Specify Amount ] in accordance with the offset applied. This will reduce the outstanding balance on the loan.

Ensure the debit is applied to the appropriate liability account on your balance sheet ( e.g., Loan Receivables or Vehicle Loan Liability ). 
2. Credit Entry for Asset : Credit the corresponding asset account for the same amount of $ [ Specify Amount ]. This represents the value derived from the promissory note or asset I provided as collateral or funding. This value should be reflected as an asset, and the corresponding ledger entry should be made according to FASB ASC 310-10-25.

If the promissory note has been monetized, securitized, or otherwise used to create funds, provide evidence of how this value has been treated and recorded on your financial statements.

3. Adjustment to General Ledger : Apply an appropriate adjustment in the general ledger that reflects the change in the loan balance and the application of the offset. This ensures the loans liability is accurately reduced in line with the amount of the offset.

Ensure that the updated entry reflects FASB ASC 210 ( Balance Sheet ), presenting liabilities and equity accurately after the offset. 
XXXX. Cash Receipt Confirmation : Provide a cash receipt or similar confirmation indicating the application of the offset. This receipt should specify the amount offset and confirm the discharge of that amount from the balance due. 
The receipt should reflect the payment as part of your bank ledger system in accordance with XXXX XXXX XXXX ( Cash and Cash Equivalents ). 
XXXX. XXXX XXXX XXXX : After applying the offset, provide an updated statement showing the remaining loan balance, if any. If the loan is fully satisfied through the offset, provide a statement confirming the full discharge of the loan. 
Make sure to update all internal records to reflect the change in the loans status, ensuring that no further collection activity is pursued once the offset is applied. 
Legal Reference and Basis for Offset The application of this offset is grounded in the Uniform Commercial Code ( UCC ) and applicable FASB standards. Specifically, I am asserting my right under the following : UCC 3-603 : Discharge by Tender of Payment the offset applied to the loan balance is valid and serves to reduce the debt owed to the bank.

UCC 9-404 : Rights of Obligors as the original creditor and party to the promissory note, I have the right to assert any claim or defense related to the underlying asset.

FASB ASC 310-10-25 : The treatment of financial assets and liabilities, ensuring the proper recording of the asset created by my note and the corresponding reduction in the loan liability. 


XXXX  response was vague and included a photo copy of the alleged contract.

Company response to consumer: Closed with explanation