Consumer complaint received 2022-12-27 00:00:00
Product: Debt collection — Auto debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: Lendsmart, Inc.
State: CA

Complaint narrative:
I Declare under penalty of perjury under the laws of the state of California that the statements below are true and correct. Commenced on XX/XX/XXXX. The representation are true and correct, and contain no material omissions of fact to the best of my knowledge and belief. 


There have been numerous attempts at corresponding with LendSmart to produce the contract I have with you. Your company has never responded to those requests, nor have you provided any evidence showing that I ever had a contract with LendSmart or XXXX XXXX. In fact, your corresponding answer to the CFPB shows that you claim to have bought the contract from XXXX XXXX XXXX  and began to fraudulently extort money from me claiming that I owed LendSmart. 


Whereas a contract is a agreement between parties, creating mutual obligations that are enforceable by law and consideration is the foundation of all contracts. There was never any consideration between me and LendSmart or XXXX XXXX. Neither LendSmart nor XXXX XXXX gave anything to myself that binds me to any contract with them. 
Whereas in Exhibit ( A ) the contract that I had with XXXX XXXX XXXX shows that I provided XXXX XXXX XXXX with a Promise to Pay aka promissory note and they provided me with a personal vehicle, the XXXX XXXX XXXX XXXX. Both parties in that contract provided verifiable consideration creating the contract between me and XXXX XXXX XXXX. 

Nowhere on this contract is LendSmart or XXXX XXXX  mentioned Whereas in the corresponding answer that LendSmart gave on the record with the CFPB they purchased that contract from XXXX XXXX XXXX as an outside party to the original contract making LendSmart a debt collector and not the original creditor. The debt collector according to the FTCPA may not uses any false, deceptive, or misleading representation or means in connection with the collection of any debt 807. False or misleading representation : ( 4 ) The representation or implication that nonpayment of any debt will result in the arrest or imprisonment of any person or the seizure, garnishment, attachment, or sale of any property or wages of any person unless such action is lawful and the debt collector or creditor intends to take such action. 

Whereas according to 15 US Code 1692j Exhibit ( B ) which was presented to LendSmart in initial correspondence with them, it is unlawful to design, compile, and furnish any form knowing that such form would be used to create the false belief in a consumer that a person other then the creditor of such consumer is participating in the collection of or in an attempt to collect a debt such consumer allegedly owes such creditor, when in fact such person is not so participating. I have no contract with LendSmart or XXXX XXXX. 
Any person who violates this section shall be liable to the same extent and in the same manner as a debt collector is liable under section 1692k of this title for failure to comply with a provision of this chapter. 
15 US Code 1692k Civil liability ( a ) Amount of damages Except as otherwise provided by this section, any debt collector who fails to comply with any provision of this subchapter with respect to any person is liable to such person in an amount equal to the sum of ( 1 ) any actual damage sustained by such person as a result of such failure ; ( 2 ) ( A ) in the case of any action by an individual, such additional damages as the court may allow, but not exceeding {$1000.00} ; or ( B ) in the case of a class action, ( i ) such amount for each named plaintiff as could be recovered under subparagraph ( A ), and ( ii ) such amount as the court may allow for all other class members, without regard to a minimum individual recovery, not to exceed the lesser of {$500000.00} or 1 per centum of the net worth of the debt collector ; and ( 3 ) in the case of any successful action to enforce the foregoing liability, the costs of the action, together with a reasonable attorneys fee as determined by the court. On a finding by the court that an action under this section was brought in bad faith and for the purpose of harassment, the court may award to the defendant attorneys fees reasonable in relation to the work expended and costs.

( b ) Factors considered by court In determining the amount of liability in any action under subsection ( a ), the court shall consider, among other relevant factors ( 1 ) in any individual action under subsection ( a ) ( 2 ) ( A ), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, and the extent to which such noncompliance was intentional; or ( 2 ) in any class action under subsection ( a ) ( 2 ) ( B ), the frequency and persistence of noncompliance by the debt collector, the nature of such noncompliance, the resources of the debt collector, the number of persons adversely affected, and the extent to which the debt collectors noncompliance was intentional.

Whereas since XX/XX/XXXX I have corresponded with LendSmart that I was in dispute that I owed LendSmart anything and stated on the record via notarized document that I never had any contract with them and asked for them to present me with whatever contract they claim that I had with them yet they continued to report the fraud to my credit report and continue to do so until this date. FDCPA 807 False or misleading representation : ( 8 ) Communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.

( 10 ) The use of any false representation or deceptive means to collect or attempt to collect any debt or to obtain information concerning a consumer.

( 12 ) The false representation or implication that accounts have been turned over to innocent purchasers for value.

Nowhere on this document is XXXX XXXX XXXX mentioned as the original creditor Whereas when asked to validate the contract I have with LendSmart they failed to present that contract within the 5 days from the initial communication and in fact called me via telephone claiming to be the creditor when in fact according to Exhibit ( A ) the original creditor on the contract is XXXX XXXX XXXX. XXXX Validation of debts : ( a ) Notice of debt ; contents Within five days after the initial communication with a consumer in connection with the collection of any debt, a debt collector shall, unless the following information is contained in the initial communication or the consumer has paid the debt, send the consumer a written notice containing -- ( 1 ) the amount of the debt ; ( 2 ) the name of the creditor to whom the debt is owed ; Whereas according to the FDCPA 811 Legal actions by debt collectors : ( A ) VENUES Any debt collector who brings any legal action on a debt against any consumer shall -- ( 1 ) in the case of an action to enforce an interest in real property securing the consumer 's obligation, bring such action only in a judicial district or similar legal entity in which such real property is located ; or ( 2 ) in the case of an action not described in paragraph ( 1 ), bring such action only in the judicial district or similar legal entity -- I have never been seen in court for this matter nor has LendSmart ever took any legal or judicial action against me to justify the stealing of my vehicle.

Whereas LendSmart or XXXX XXXX XXXX  is not who was listed as the creditor when my vehicle was stolen. It was shown as a XXXX XXXX whom I have no contract with nor have I ever had a contract with. 
Exhibit ( C ) Exhibit ( D )

Company response to consumer: Closed with explanation