Livinglies's Weblog

if the CRC does not perform the investigation or performs it incorrectly, you can sue them.

In a world where the ability to access credit matters more than the ability to access savings, nothing could be more important than these provisions under the Fair Credit Reporting Act (FCRA).

Anyone who read the book or saw the film “The Firm” knows that it is often a boring statute that can take down the worst offenders. It was mail fraud in that story. For more information ask the descendants of Al Capone who died in prison of syphilis after being convicted of income tax evasion. Both bad guys were guilty of murder and mayhem. But what put them away was overbilling clients and evasion of income tax liability and payments respectively.

The Consumer Financial Protection Board is doing a deep dive into both debt collection and reporting under the FCRA (Fair Credit Reporting Act). Apparently, someone woke up to the fact that reporting “agencies” (none of them are governmental) are indeed required to perform both due diligence and an investigation when the “debtor” challenges a negative credit report.

I know. It is boring. But you might get more interested when you consider the importance of these provisions. Or to put a finer point on it, you SHOULD be more interested. Most of the value of your home could end up as equity — i.e., the value you can trade on or borrow.

The investment banks need to make sure that programs like the one I created (AMGAR) never get off the ground. That means making it nearly impossible for any legitimate lender to issue a commitment to refinance the so-called loan with the usual customary standard condition — that it gets the priority position for its lien on the subject property securing the new loan transaction with the homeowner. 

This means that the old “lender” or “successor lender” must actually assert and provide confirmation that it is actually the owner of the receivable allegedly due from the homeowner. Up until now, that standard requirement has been ignored and the marketplace has been coercing homeowners to accept title insurance as a substitute for title. Hint: They’re not the same thing. 

The way this “policy” has been enforced is to prevent the homeowner from seeking hard money or other lenders. There is no better way than negative credit reporting. A bad credit report blocks almost any source of funds for the usual homeowner. So the inability of the “old creditor” to confirm the existence of the loan account never becomes an issue.

But there is a mechanism by which homeowners can defeat this strategy that supports false claims for administration, collection, and enforcement of claims and payments from homeowners. The mechanism is contained in 15 U.S.C. § 1681i(a)(1)(A).

see cfpb_supervisory-highlights_issue-26_2022-04

Here is the quote from the latest CFPB bulletin. Remember that the fact that it is boring does not mean that it won’t provide you with tangible benefits that could change the whole trajectory of your life.

2.2.1 CRC duty to conduct reasonable reinvestigation of disputed information The FCRA requires that a CRC must conduct a reasonable reinvestigation of disputed information to determine if the disputed information is inaccurate whenever the completeness or accuracy of any item of information contained in a consumer’s file is disputed by the consumer and the consumer notifies the CRC directly, or indirectly through a reseller, of such dispute.8 In several reviews of CRCs, examiners found that CRCs failed to conduct reasonable investigations of disputes in multiple ways. Examiners also found that rather than resolving disputes consistent with the investigation conducted by the furnisher, which in many instances would have required correcting inaccurate derogatory information and replacing it with accurate positive information, CRCs simply deleted thousands of disputed tradelines. Examiners also found that CRCs failed to conduct reasonable dispute investigations when they failed to review and consider all relevant information submitted by the consumer in support of their disputes. After identification of these issues, CRCs were directed to cease violating the FCRA’s dispute investigation requirements. [e.s.]

In practice what this means for consumers of all types who partake of the twisted financial products offered under cover of false labels is that if you submit a contest to the credit reporting company (CRC) with an appropriate summary and exhibits and state the nature of the contest and the reasons for it, the CRC must conduct a deliberate investigation to determine whether or not it is true.

And if the CRC does not perform the investigation or performs it incorrectly, you can sue them.

If the “furnisher” (usually a company that has been designated as a “Servicer”) is unable to establish the accuracy of the report the furnisher must withdraw it or the CRC must take it down. That action alone lends corroboration to the defense narrative in foreclosure.

The allegation can then be made that the putative “servicer” and “Creditor” are unable to corroborate their claims for rights to administer, collect and enforce the alleged underlying obligation — despite being contractually bound to do so (FCRA, and bound by the statutory duty to do so (FCRA, FDCOA, RESPA).

So how boring is it when you consider that the place of “creditor” and the fact of “loan account” has been eliminated by Wall Street investment banking strategies? Do you still feel like paying them anyway? Or would you like to know how they are really making money, regardless of whether you pay or not?

PRACTICE HINT: THIS IS ONE EXAMPLE OF WHY HOMEOWNERS SHOULD OBTAIN A FORENSIC INVESTIGATION REPORT AS SOON AS POSSIBLE. BEING “CURRENT” IS BOTH IRRELEVANT AND POTENTIALLY DAMAGING IF YOU ARE PAYING ON A NON-EXISTING DEBT FOR THE BENEFIT OF A NONEXISTENT CREDITOR.

===============

DID YOU LIKE THIS ARTICLE?
Nobody paid me to write this. I am self-funded, supported only by donations. My mission is to stop foreclosures and other collection efforts against homeowners and consumers without proof of loss. If you want to support this effort please click on this link and donate as much as you feel you can afford.

Please Donate to Support Neil Garfield’s Efforts to Stop Foreclosure Fraud.
CLICK TO DONATE

Neil F Garfield, MBA, JD, 75, is a Florida licensed trial and appellate attorney since 1977. He has received multiple academic and achievement awards in business, accounting and law. He is a former investment banker, securities broker, securities analyst, and financial analyst.
*
FREE REVIEW: Don’t wait, Act NOW!

CLICK HERE FOR REGISTRATION FORM. It is free, with no obligation and we keep all information private. The information you provide is not used for any purpose except for providing services you order or request from us. You will receive an email response from Mr. Garfield  usually within 24 hours. In  the meanwhile you can order any of the following:

Click Here for Preliminary Document Review (PDR) [Basic, Plus, Premium) includes 30 minute recorded CONSULT). Includes title search under PDR Plus and PDR Premium.

Click here for Administrative Strategy ANALYSIS AND NARRATIVE. This could be all you need to preserve your objections and defenses to administration, collection or enforcement of your obligation. Suggestions for discovery demands are included.
*
CLICK HERE TO ORDER CONSULT (not necessary if you order PDR)
*
CLICK HERE TO ORDER CASE ANALYSIS 
*

FORECLOSURE DEFENSE IS NOT SIMPLE. THERE IS NO GUARANTEE OF A FAVORABLE RESULT. THE COMMENTS ON THIS BLOG AND ELSEWHERE ARE BASED ON THE ABILITY OF A HOMEOWNER TO WIN THE CASE NOT MERELY SETTLE IT. OTHER LAWYERS HAVE STRATEGIES DIRECTED AT SETTLEMENT OR MODIFICATION. THE FORECLOSURE MILLS WILL DO EVERYTHING POSSIBLE TO WEAR YOU DOWN AND UNDERMINE YOUR CONFIDENCE. ALL EVIDENCE SHOWS THAT NO MEANINGFUL SETTLEMENT OCCURS UNTIL THE 11TH HOUR OF LITIGATION.

But challenging the “servicers” and other claimants before they seek enforcement can delay action by them for as much as 12 years or more. In addition, although currently rare, it can also result in your homestead being free and clear of any mortgage lien that you contested. (No Guarantee).

Yes you DO need a lawyer.
If you wish to retain me as a legal consultant please write to me at neilfgarfield@hotmail.com.

Please visit www.lendinglies.com for more information.

Filed under: CORRUPTION, foreclosure defenses, forensic investigation, investment banking, Pleading, Presumptions, prima facie case, Servicer, sham transactions, standing, TRIAL OBJECTIONS, trial strategy |