Santander - third party or ???

[musicdiva]

I have been working on rebuilding my credit and have to face the music and deal with the santander issue that has made my life hell. 

I was reviewing old files and found the original notice from when they assumed the role of "servicer" for HSBC.  My letter clearly states "your auto loan is still owned by HSBC and will be serviced by Santander USA". It also states (starts off by saying) HSBC and Santander "entered into an agreement" of which Santander would "serve as a third party servicer for part of its auto loan portfolio".  "This service transfer does not affect the current terms of your loan". 

I thought, from what I have read over the years that Santander purcahsed the HSBC book... but, this letter stated HSBC still owned the loan. So... with that, do I have any standing to get any reporting by Santander off of my credit reports? Are they deemed a CA by being a "servicer".. 

If they ultimately purchased the book, I dont know..but I am just wondering based on the actual letter I have..what are my options to get the information removed?  I interpret that to mean HSBC was/is the legal owner and as such can not tansfer rights to someone to report to CRA's and therefore I have a good chance of getting Santander deleted under FCRA? 

I'm confused now because I thought the loans were actually owned by Santander.  If they really did that - they still misrepresnted themselves?.. Ultimate goal here & feedback I am seeking is about their right to report to CRA's and if they are skirting by on thin ice - what sections of FCRA will support my request to remove their data?

[RobertEG]

If the debt was not incurred with them, they are a debt collector under the statute.  That holds true regardless of whether they have purchased the debt, so they are required to comply with the FDCPA, including proper dunning notice.

Did their letter also advise you of the amount of the debt, and of your right to request verification of the debt within 30 days?

If not, it is not proper dunning notice, and they still have an obligation to send you dunning notice within 5 days of that communication.

You might begin by sending them a DV request, thus imposing a cease collection bar on them until such time as they choose to provide verification of the debt.

The next move would then be up to them.

They have not done anything improper in advising you of their "service agreement."  However, it did intiate collection activiites,thus requiring they provide dunning notice.

Its too early in the process to do much of anything other than send a DV.

[musicdiva]

I'll check on that, thank you.