Consumer complaint received 2025-03-25 00:00:00
Product: Mortgage — Conventional home mortgage
Issue: Trouble during payment process — Trying to communicate with the company to fix an issue while managing or servicing your loan
Company: Quality Loan Service Corporation
State: CA

Complaint narrative:
Complaint Summary : \n I am filing this complaint against Quality Loan Service Corporation ( QLS ) for engaging in illegal foreclosure as they lack standing to do so. QLS has violated multiple federal and state laws by failing to verify the authority of the foreclosing party, ignoring my debt dispute, and proceeding with an illegal foreclosure. I request that the CFPB investigate QLS and take immediate action to prevent this illegal and wrongful foreclosure scheduled for XX/XX/XXXX. 

( A ) Violations of Law and Penalties : 1. Lack of Standing Due to a Broken Chain of Title and invalid beneficiary on corrective assignment of deed of trust fraudulently recorded on XX/XX/XXXX. ( a ) Violation of California Civil Code 2934a A substitution of trustee is only valid if executed by the legally authorized party. QLS is allegedly foreclosing on behalf of XXXX XXXX XXXX XXXX XXXX NOT IN ITS INDIVIDUAL CAPACITY BUT SOLEY AS COLLATERAL TRUST TRUSTEE OF XXXX XXXX XXXX  XXXX COLLATERAL TRUST who is not a lawful beneficiary due to the fact, the corrective deed of trust is invalid and alleged beneficiary has no authority to substitution of trustee, therefore, QLS appointment is invalid. ( b ) Violation of California Civil Code 2924 ( a ) ( 6 ) Only the actual holder of the beneficial interest can foreclose. QLS is acting on behalf of a party with no authority, violating foreclosure laws. ( c ) Potential Penalty Any trustee sale conducted without proper authority is void under California law.

\n2. Failure to Properly Record Documents Related to XXXX  Actions ( a ) Violation of California Civil Code 2924.17 ( a ) - ( b ) Servicers and trustees must ensure that foreclosure-related documents are accurate, supported by competent evidence, and properly recorded. XXXX failure to record its authority as an attorney-in-fact invalidates the assignment of corporate deed of trust recorded on XX/XX/XXXX and the substitution of trustee recorded on XX/XX/XXXX. ( b ) I wrote a letter on XX/XX/XXXX inquiring about the XXXX acting as attorney in fact and this was ignored as well. ( c ) Potential Penalty Courts have voided wrongful foreclosures and imposed monetary damages for violations of this section. 
XXXX. Failure to Address Debt Dispute Before Proceeding with Foreclosure by recording a Notice of Default on XX/XX/XXXX. ( a ) Violation of the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g If a consumer disputes a debt, the debt collector ( QLS ) must cease collection activities ( including foreclosure ) until the debt is verified. QLS ignored my dispute, no response received from QLS and QLS proceeded with foreclosure. The letter from QLS stated I had till XX/XX/XXXX to dispute the alleged debt and my debt dispute letter of XX/XX/XXXX was ignored and QLS recorded a notice of default before the due date of XX/XX/XXXX provided by QLS. See the debt dispute letter of XX/XX/XXXX, the notice of default recorded on XX/XX/XXXX. 
4. QLSs Duty to Verify the Authority of the Party Foreclosing ( a ) Violation of California Civil Code 2924.17 ( b ) A trustee must ensure foreclosure documents are accurate and legally valid before initiating foreclosure. QLS failed to verify XXXX XXXX XXXX XXXX XXXX NOT IN ITS INDIVIDUAL CAPACITY BUT SOLEY AS COLLATERAL TRUST TRUSTEE OF XXXX XXXX XXXX  XXXX COLLATERAL TRUSTs authority before acting. 
( b ) Violation of California Business & Professions Code 17200 ( Unfair Competition Law UCL ) QLSs actions constitute unfair and deceptive business practices. Courts have imposed injunctive relief and financial penalties for wrongful foreclosure practices.

( i ) Potential Penalties : ( ii ) Injunctive relief to stop the foreclosure.

( iii ) Monetary damages, including restitution for wrongful foreclosure actions. 
Attachments : ( a ) Copy of my debt dispute letter sent to QLS on XX/XX/XXXX ( b ) Copy of the defective corrective deed of trust ( c ) Copy of the corporate deed of trust created in-house by XXXX  and recorded without attorney in fact ( d ) Copy of the substitution of trustee created in-house by XXXX  and recorded without attorney in fact ( e ) Copy of the letter sent on XX/XX/XXXX asking for proof of delegated authority for SPS to act as attorney in fact ( g ) Copy of the Notice of Default recorded on XX/XX/XXXX before verifying disputed debt ( h ) Copy of Notice of Sale set for XX/XX/XXXX recorded without standing and without proper debt verification. ( i ) copy of XXXX XXXX recorded with XXXX XXXX XXXX recorder.

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