Consumer complaint received 2025-01-08 00:00:00
Product: Debt collection — Mortgage debt
Issue: Took or threatened to take negative or legal action — Sued you without properly notifying you of lawsuit
Company: SELECT PORTFOLIO SERVICING, INC.
State: NY

Complaint narrative:
[ DRAFT MOTION TO COMPEL ARBITRATION ] IN THE UNITED STATES XXXX XXXX XXXX XXXX  XXXX, XXXX XXXX XXXX XXXX. 

XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX  XXXX, XXXX NY XXXX XXXX XXXX, XXXX  XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX UT XXXX Defendant. 

XXXX XXXX. XXXX ( Third-Party Debt Collector ) MOTION TO COMPEL ARBITRATION AND CEASE AND DESIST ORDER Plaintiff [ XXXX XXXX XXXX XXXX by and through their undersigned counsel, hereby respectfully submits this Motion to Compel Arbitration in the above-captioned cases against Defendant [ SELECT PORTFOLIO SERVICING INC. ] , pursuant to the applicable provisions of the Fair Debt Collection Practices Act ( FDCPA ), the Fair Credit Reporting Act ( FCRA ), and other relevant federal statutes, and further requests a Cease and Desist Order regarding the Defendants continued actions and collection practices. 

I. INTRODUCTION Plaintiff asserts that this motion is brought to compel the arbitration of this dispute between the parties, which arises under the FDCPA, the FCRA, and related consumer protection laws, and to request an order compelling Defendant to cease further collections efforts until the arbitration process has concluded. Furthermore, Plaintiff requests the removal of negative items from their credit report in accordance with federal laws prohibiting unfair and deceptive debt collection practices and the violation of the Plaintiffs consumer rights under these statutes. 

XXXX. FACTUAL BACKGROUND Plaintiff, a consumer, has been subjected to improper and illegal debt collection practices by Defendant in XXXX XXXX. XXXX, a third-party debt collector. 
The Defendants actions include continued collection efforts, inaccurate reporting of Plaintiff 's debts, and other related violations as outlined under the FDCPA and FCRA. 
Plaintiff, in good faith, has previously communicated with Defendant regarding these issues, but Defendant has failed to adhere to the statutory requirements under both the FDCPA and the FCRA. 
This debt was originally purchsed by XXXX XXXXXXXX on XX/XX/XXXX ( account # XXXX ), then sold to Caliber Home Loans whom later sold it to Select Portfolio Servicing Inc. , in XXXX without permission from Plaintiff. 
Information provided to first and secondary credit bureaus has been completely inaccurate, resulting in Plaintiff scores dropping over XXXX points neagatively affect her livelihood. 
Plaintiff has never been issued form 1099 C filed from any company or issued any on their behalf to file. 
III. LEGAL BASIS FOR COMPELLING ARBITRATION The Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692, et seq.

Under the FDCPA, debt collectors are required to act fairly and accurately in their attempts to collect debts. Section 1692g mandates that debt collectors provide a clear validation notice to consumers, including the amount of the debt, the creditors identity, and how to dispute the debt. Failure to comply with these regulations is actionable under the FDCPA. Additionally, Section 1692cc prohibits collectors from communicating with consumers at inconvenient times or places.

The Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681, et seq.

The FCRA imposes obligations on entities that report consumer credit information. Section 1681c states that negative items must be removed after a certain time period, and Section 1681e ( b ) requires that credit reporting agencies maintain reasonable procedures to ensure accurate reporting. Defendants failure to remove negative reports after Plaintiffs dispute constitutes a violation of the FCRA.

Arbitration Clauses in Agreements Plaintiffs agreements with the Defendant may contain mandatory arbitration clauses that preclude the need for litigation and instead require arbitration to resolve the dispute. Under the Federal Arbitration Act ( FAA ), arbitration agreements are enforceable, and any disputes arising under these agreements must be resolved in an arbitration setting. Defendants failure to comply with these contractual arbitration provisions necessitates the Courts intervention to enforce such an agreement. 

Congressional Intent Behind FCRA and FDCPA Congress enacted the FDCPA and FCRA to ensure that consumers are treated fairly by debt collectors and credit reporting agencies. The goal was to protect consumers from harassment, inaccurate credit reporting, and violation of personal rights. Defendants practices violate these federal protections and infringe upon Plaintiffs rights to fair treatment.

IV. REQUEST FOR CEASE AND DESIST ORDER Plaintiff requests the Court issue an order compelling Defendant to cease and desist from any further collection actions or reporting of inaccurate information on Plaintiffs credit report pending the outcome of the arbitration proceedings. Should Defendant continue their actions, Plaintiff will seek additional remedies, including statutory and punitive damages for violations of the FDCPA and FCRA. 

V. VIOLATION OF HUMAN RIGHTS Defendant 's actions in continuing debt collection efforts and misreporting Plaintiff 's credit information constitute a violation of Plaintiffs fundamental human rights to fair and equal treatment under the law. The imposition of illegal debt obligations, improper reporting, and harassing behavior by debt collectors inflicts severe emotional and financial distress upon consumers. Such actions not only contravene consumer protection statutes but also undermine the principles of dignity, fairness, and justice that the FDCPA and FCRA are intended to protect.

VI. CONSEQUENCES OF FAILURE TO COMPLY AND RETALIATION Plaintiff requests that the Court advise Defendant of the severe consequences of failing to comply with the arbitration requirement and Cease and Desist Order. Non-compliance may result in : Further Legal Action : Plaintiff may pursue further litigation or legal action for damages arising from violations of the FDCPA, FCRA, and other related statutes. 
Permanent Removal of Negative Items : If the arbitration ruling finds that Defendant violated the FDCPA or FCRA, the Defendant will be required by law to permanently remove any negative items related to Plaintiffs account from their credit report, as mandated under 15 U.S.C. 1681c and 1681e.

Statutory and Punitive Damages : Plaintiff may be entitled to statutory damages for each violation, as well as punitive damages where appropriate, under both the FDCPA and FCRA.

Retaliation Prohibited : Any retaliatory action taken by Defendant following the filing of this motion or in response to Plaintiffs participation in arbitration will be considered a violation of federal law and may result in additional claims, including for retaliatory actions and further consumer protection violations.

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