Consumer complaint received 2025-03-03 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: SELECT PORTFOLIO SERVICING, INC.
State: AK

Complaint narrative:
I am submitting this formal dispute regarding inaccurate, misleading, and potentially fraudulent reporting by Select Portfolio Servicing , Inc. ( SPS ) on my credit report. This dispute concerns a second mortgage loan originally issued by XXXX XXXX XXXX, then allegedly sold to XXXX XXXX XXXXXXXX, and I can not find any documents assigning the loan to SPS from XXXX Upon reviewing my credit report and related mortgage records, I have identified multiple serious discrepancies that cast doubt on the legitimacy of the reporting by SPS and the legal standing of this loan. I request that you immediately investigate and correct these errors under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681.

Key Disputes & Evidence of Reporting Errors 1. Incorrect Original Loan Balance Fraudulent Increase of Loan Amount My original second mortgage loan, as documented in the Deed of Trust dated XX/XX/XXXX, was for {$60000.00}. 
My credit report lists an " original balance '' of {$85000.00}, which is substantially higher than the actual loan amount. 
SPS has failed to justify how my loan balance was increased by over {$26000.00} which appears to be unlawful capitalization of fees and interest.

2. Balance Not Decreasing Despite Consistent Payments Predatory Lending Scheme I have made consistent monthly payments of {$600.00} for seven years, yet my balance has remained unchanged or increased.

Loan records suggest that SPS restructured my loan into an " interest-only '' payment plan, despite my original agreement being a fully amortized loan.

SPS 's servicing practices appear to be predatory, ensuring that I can never pay off this loan.

3. Fraudulent Loan Term Extension Unilateral Modification Without Consent My original loan term was 20 years, set to mature on XX/XX/XXXX. 
My XXXX credit report now falsely lists a 55-year loan term, which was never part of my original loan agreement and was modified without my consent.

SPS has no legal authority to extend my loan term in this manner without proper disclosure and borrower agreement.

4. Unlawful Loan Modification & Balloon Payment Fraudulent Practices by SPS I pursued a loan modification due to financial hardship, expecting a fair restructuring of payments. 
Instead, SPS imposed a {$26000.00} balloon payment and converted my loan into an interest-only structure at a 12 % interest rate, ensuring that I would never pay down the principal.

This modification was predatory in nature and designed to exploit financial distress, violating federal and state consumer protection laws.

5. Failure to Validate the Debt SPS Ignored My Requests for Loan Documentation I sent a debt validation request to SPS on XX/XX/XXXX, which was received on XX/XX/XXXX ( XXXX confirmation ). 
A second request was sent on XX/XX/XXXX, but SPS that SPS has not received yet. 
If SPS can not validate this debt with proper documentation, they should not be reporting it to credit bureaus. 

6. Questionable Assignment of Deed of Trust No Verified Legal Transfer to SPS The Assignment of Deed of Trust lists XXXX XXXX XXXXXXXX, but there is no clear evidence that XXXX legally transferred my loan to SPS. 
XXXX XXXX XXXX remains the listed lienholder on my deed, raising serious legal concerns. 
If no valid assignment exists, SPS may have no legal right to collect payments or report this account. 
Request for Immediate Action Under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681, I formally request that you immediately investigate and correct the following inaccuracies : Remove the incorrect original loan balance ( {$85000.00} ) and replace it with the correct amount of {$60000.00}. Correct the loan term to reflect the original 20-year agreement instead of the fraudulent 55-year extension. Investigate the predatory loan modification practices and the unlawful balloon payment of {$26000.00}. Remove the entire SPS tradeline if they fail to validate the loan with proper documentation.

Under FCRA 611 ( 15 U.S.C. 1681i ), you are required to investigate this dispute within 30 days. If SPS can not validate this debt with a legally recorded Assignment of Deed of Trust, this tradeline must be deleted from my credit report immediately.

Final Notice This dispute is a serious legal matter, and I expect immediate correction of these errors. Please provide me with a written response regarding the results of your investigation within 30 days, as required by law.

Thank you for your prompt attention to this matter. I look forward to your response.

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