Consumer complaint received 2024-12-20 00:00:00
Product: Mortgage — VA mortgage
Issue: Trouble during payment process — Payment process
Company: PENNYMAC LOAN SERVICES, LLC.
State: NC

Complaint narrative:
I received a bill of exchange from PENNYMAC LOAN SERVICES on XX/XX/year>XXXX  for my XXXX monthly loan PAYMENT of {$1700.00}. I properly endorsed the bill for the full amount of the unpaid balance of {$310000.00} with the XXXX  XXXX  for verification of signatures with the proper seal and return it to PENNYMAC Transfer Agent Computershare at XXXX XXXX XXXX XXXX XXXX XXXX, MA XXXX Toll-Free : XXXX I sent a copy of the security to PENNYMAC to keep them informed as to my intentions. 
On XX/XX/year>, I received a letter from PENNYMACS transfer agent that the security that I sent them was sent to them in error and therefore they are returning it to me. On XX/XX/year>, I received a letter from PENNYMAC informing me that since they are the servicer of the loan all transaction must go through them. 
I noticed that the instrument which was returned to me by the transfer agent indicated the process was started in order to discharge the alleged loan by the stamps on the back of the instrument saying, XXXX XXXX verify and a stamp on the front saying, raised seal, referring to the postage stamps on the front of the instrument. 
I sent the instrument to XXXX XXXX ( Chief Financial Officer of PENNYMAC ) as they requested all document must go through them instructing him to please continue with the processing of the instrument for discharge of the alleged loan. The instrument was received by them on XX/XX/year> by XXXX XXXX according to the United States Postal Form 3811 return receipt # XXXX XXXX XXXX XXXX XXXX XXXX. A notice of claim to the instrument was also sent with the security instrument demanding that if the instrument was not utilized to satisfy the payment or obligation for which it was intended, it must be returned to me promptly. As of the reading of this letter, they have not return my instrument, so I would conclude that it was utilized to satisfy the payment or obligation it represented or they have exchange it at the federal reserve window for federal reserve notes. Either way, they have ACCEPTED it. Under the Bills Of Exchange Act 1882, North Carolina XXXX XXXX XXXX XXXX XXXX, North Carolina General Statue 25 2 304. Price payable in money, goods, realty, or otherwise, I choose otherwise to discharge the debt. 

The Uniform Commercial Code 4-302. PAYOR BANK 's RESPONSIBILITY FOR LATE RETURN OF ITEM. States : ( a ) If an item is presented to and received by a payers bank, the bank is accountable for the amount of : ( 1 ) a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depositary bank, retains the item beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depositary bank, does not pay or return the item or send notice of dishonor until after its midnight deadline ; or ( 2 ) any other properly payable item unless, within the time allowed for acceptance or payment of that item, the bank either accepts or pays the item or returns it and accompanying documents. 
Four letter were sent to XXXX XXXX ( Chief Financial Officer of PENNYMAC ) requesting : A valid contract signed by both parties confirming bilateral consent. 
A true and certified copy of the complete audit trail of said account including any loss to the company. Audit certification of debt entry in accordance with Generally Accepted Accounting Practice. ( G.A.P.P. ) A copy of their Tax Registration certificate. XXXX XXXX XXXX ( Chief Financial Officer of PENNYMAC ) did not respond with the documents I request and therefore was presented with a notarized irrevocable estoppel by acquiescence PAYMENT. The fulfilment of a promise, or the performance of an agreement. A discharge of an obligation or debt, and part payment, if accepted, is a discharge pro tanto. The execution and delivery of negotiable papers is not payment unless it is accepted by the parties in that sense. XXXX XXXX XXXX XXXX Obligation or other security of the United States defined 18 U.S. Code 8 - The term obligation or other security of the United States includes all bonds, certificates of indebtedness, national bank currency XXXX Federal Reserve notes, Federal Reserve bank notes, coupons, United States notes, Treasury notes, gold certificates, silver certificates, fractional notes, certificates of deposit, bills, checks, or drafts for money, drawn by or upon authorized officers of the United States, stamps and other representatives of value, of whatever denomination, issued under any Act of Congress, and canceled United States stamps. 
A transfer agent is a financial services professional or organization responsible for managing and maintaining the records of shareholders or bondholders for a company, mutual fund, or other securities issuer. The primary role of a transfer agent is to ensure the accurate and efficient processing of transactions involving the transfer of ownership of securities. 

U.C.C 3-407. ALTERATION ( a ) " Alteration '' means ( i ) an unauthorized change in an instrument that purports to modify in any respect the obligation of a party, or ( ii ) an unauthorized addition of words or numbers or other change to an incomplete instrument relating to the obligation of a party. 
( b ) Except as provided in subsection ( c ), an alteration fraudulently made discharges a party whose obligation is affected by the alteration unless that party assents or is precluded from asserting the alteration. No other alteration discharges a party, and the instrument may be enforced according to its original terms. 
U.C.C 4-302. PAYOR BANK 's RESPONSIBILITY FOR LATE RETURN OF ITEM. 
( a ) If an item is presented to and received by a payor bank, the bank is accountable for the amount of : ( 1 ) a demand item, other than a documentary draft, whether properly payable or not, if the bank, in any case in which it is not also the depository bank, retains the item beyond midnight of the banking day of receipt without settling for it or, whether or not it is also the depository bank, does not pay or return the item or send notice of dishonor until after its midnight deadline ; or ( 2 ) any other properly payable item unless, within the time allowed for acceptance or payment of that item, the bank either accepts or pays the item or returns it and accompanying documents.

Company response to consumer: Closed with explanation