Loan enforcement expenses unproven, regardless of the many requests for documentation. The ongoing saga with the bank highlights more concerns regarding the alleged unsubstantiated debt the bank claims.

If you’ve been following the situation, you’ll be aware there’s been no mortgage payments to cover the alleged liability, for over three years.

Bank actors fail, neglect or refuse to meet with their customers to negotiate a settlement. They fail to address many issues, answer questions, or provide proof in support of demands to settle an alleged outstanding loan account balance.

Threatening foreclosure on a debt that the bank doesn’t verify is ridiculous. If the bank has sufficient evidence to commence legal action, then why not first negotiate with the customer. Because, according to the bank’s website – that’s how they handle disputes.

The bank advertises a dispute resolution process. But that’s another story.

So, according to documents from the bank, the loan account balance is increasing each month due to interest charges, late payment fees and the loan enforcement expenses.

Next, debt collectors, being third party external lawyers, decide to stick their noses into matters that are of no concern to them.

They send important-looking-documents demanding payment of an outstanding loan account balance. They say if the amount’s not paid, there’s a risk the house will be sold to cover the balance.

Handling Lawyers

Asking the lawyers for proof of the debt, because the bank cannot provide proof. The lawyers reply by denying all/any claims by the “borrower.” Now they’re both breaching debt collection guidelines, as well as other statutory requirements.

So here’s evidence that a law firm is acting for the bank, in trying to recover a debt that remains unproven.

Now there’s a few entries on the borrower’s bank statement. “Loan enforcement expense.” Well, let’s not make any assumptions here, surely someone at the bank must know what’s going on.

Regardless of the printed comments on the bank statements, there’s no reply from the bank. Nothing. No comment, explanation, documentation about the “loan enforcement expense” entries.

One option about the “loan enforcement expense” entries, is fees for the debt collector pursuing the unsubstantiated debt. If that’s the case, the debt collector is guilty of using threats and intimidation to demand unsubstantiated monies through the mail (for their own personal financial gain).

So if the bank provides their customer with details of the loan enforcement expenses (invoices etc) it opens up a whole new can of worms. Because if it’s related to fees to debt collectors, this raises a whole new set of legal and ethical concerns.

Especially if the debt collector is charging for pursuing a debt that remains unsubstantiated and unproven. And using threats and intimidation to collect the money …

Bank and Lawyers Exposure

This could open the door to various potential legal violations, including unlawful debt collection practices and fraudulent activities. By the way, none of this is legal or financial advice. Whatever you choose to do, is all on you.

Here’s why this could be a big issue for both the bank and the debt collector lawyers:

  • Unsubstantiated Debt:
    If the debt itself is unproven, any associated “loan enforcement expenses” (such as fees for the debt collector) becomes highly questionable. A debt collector can’t charge for services related to unverified or non-existent debt, especially if they’ve been using threats to collect money.

In this case, both the bank and the debt collector could be seen as complicit in illegal or unethical conduct. The bank, for failing to substantiate the debt. And the debt collector, for using intimidation tactics to pursue money settling a debt that remains in doubt.

  • Threats and Intimidation:
    Threatening behavior or using intimidation tactics to collect a debt is a clear violation of debt collection laws. E.g Fair Debt Collection Practices Act in the U.S. or Consumer Credit Protection Act in other countries. Even if the debt’s valid, using coercive methods to collect money is unlawful.

If the debt collector engages in threatening or harassing actions, this is unethical as well as illegal. If they’re chasing an unsubstantiated debt, the severity of their actions increases because they are, in effect, committing fraud by demanding money they have no legal right to claim.

Invoices and Documentation

If the bank provides the customer with invoices or breakdowns of the loan enforcement expenses, this could be a can of worms for the bank and their debt collector. These invoices could show the bank paying debt collectors for pursuing a debt they can’t substantiate. And this could be viewed as complicit in their illegal activities. The presence of detailed invoices could reveal:

  • Whether the debt collector receives a contingency fee or a percentage commission of the amount of money they collect. This financial motivation could make their tactics even more aggressive.
  • Whether the bank sanctions the debt collector’s aggressive tactics potentially implicates them in unlawful debt collection practices.

Potential for Fraud
Say the bank pays the debt collector for pursuing an unsubstantiated debt. If the bank’s charging the customer for those expenses without proof of the debt, this could constitute fraud.

Both the bank and debt collector could be involved in a scheme to demand money under false pretenses… Particularly if they continue to charge interest or fees on a debt that can’t be proven.

The customer may have a strong case for unjust enrichment against the bank (and potentially the debt collector). E.g the customer proves they’re paying for unnecessary services, while the bank demands repayment of a non-existent debt.

The bank may also have to deal with damages such as stress and harm to the customer due to harassment and unlawful debt collection practices.

Loan Enforcement Expenses Documentation

If the bank provides documentation or invoices accounting for the “loan enforcement expenses,” this is now solid evidence. And grounds to potentially pursue claims of fraud, harassment, and unlawful debt collection. You can use these documents to:

  • Challenge the validity of the debt.
    Prove that the debt collector was engaging in illegal behavior.
    Pursue damages for any stress, financial harm, or harassment caused by their actions.
  • Additionally, if the debt collector or the bank refuses to provide details, you could escalate the matter.

Start by reporting them to regulatory bodies such as the financial ombudsman, consumer protection agencies, or debt collection regulators. Depending on the findings, there may be legal consequences for their unlawful actions.

The lack of response from the bank and the continual silence regarding these crucial documents further suggests the bank has something to hide. Meanwhile the bank actors are avoiding exposure of their unlawful actions.

Moving Forward

Can you now see the benefits in not making assumptions or presumptions about anything? And do not trust the bank to “do the right thing.”

Question everything.

Follow the banks’ example. Admit Nothing. Deny Everything. Ask for proof. It’s not your responsibility to prove there’s no debt.

So far on this journey, it seems the only tactic the bank has, is fear. False Evidence Appearing Real. Because they fail refuse or neglect to provide any validation or verification in support of their claims.

DWM’s correct. The banks know they’re committing fraud. Your challenge is to prove it. And you can start right here.

You must decide the best course of action to protect your rights and ensure that you find resolution to your satisfaction.