CASE_FCFCU KB

CFPB Complaint Narrative (Draft)

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CFPB Complaint Narrative

Summary of Issue: Financial Center First Credit Union (FCFCU) is systematically misreporting an extinguished foreclosure judgment as a current, active installment loan with monthly inflating delinquencies, violating the FCRA and FDCPA. This inaccurate reporting has prevented me from obtaining housing after the foreclosure, exacerbating damages.

Detailed Explanation:

  1. Background: A foreclosure judgment was entered in favor of FCFCU on [Judgment Date] (Case 49D03-2501-MF-002559). Under Indiana law, the Note and Mortgage merged into this judgment, extinguishing the installment contract.
  2. The Error: FCFCU continues to report the tradeline to Equifax, Experian, and TransUnion as “Open/Active” with a “Past Due” balance that increases every month by the purported monthly payment amount.
  3. Legal Violation:
    • Once a judgment is entered, the contract is dead. There is no “payment due” date to miss.
    • Reporting “late” status for months after the property has been sold at Sheriff Sale ([Sale Date]) and the judgment satisfied (in rem) or deficiency established is a factual falsehood.
    • This falsely depresses my credit score by treating a single legal event (foreclosure) as a recurring monthly default (late payments).
  4. Furnisher Failure: I have disputed this directly with FCFCU via Certified Mail on [Date], providing the court order. They have failed to correct the reporting.
  5. Damages: Because of this “active delinquency” status, I have been denied rental housing [Detail denials if any], as landlords see “current past due” status rather than a closed/discharged foreclosure.

Relief Requested: I request the CFPB order FCFCU to:

  1. Update the tradeline status to “Closed/Foreclosure”.
  2. Set the Balance to $0 (or the fixed deficiency amount, if applicable, but NOT an active past due).
  3. Delete all “Late” markers reported after [Judgment Date].

Attached Documents:

  • Credit Report excerpts showing the post-judgment “Late” reporting.
  • Court Judgment and Sheriff Sale confirmation.
  • Copy of Direct Dispute letter sent to FCFCU.

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