Consumer complaint received 2023-05-26
Company: Monterey Financial Services LLC
State: GA
Product: Debt collection
Sub-product: Private student loan debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was already discharged in bankruptcy and is no longer owed

Complaint:
XXXX XXXX XXXX XXXX XXXX, XXXX  XXXX XXXX XXXXXXXX XXXX XXXXXXXX XX/XX/XXXX Monterey Financial Services, XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX XXXXXXXX XXXX XXXXXXXX Subject : XXXX Notice - Violations of FDCPA and TILA Dear Sir/Madam, I am writing to you regarding your continued attempts to collect on an alleged debt, which I believe is in violation of the Fair Debt Collection Practices Act ( FDCPA ) and the Truth in Lending Act ( TILA ). This letter serves as a pre-arbitration notice, indicating my intention to pursue arbitration to address these violations. 

According to my records, the alleged debt in question was included in a XXXX  XXXX bankruptcy filing, which was discharged in XX/XX/XXXX. Despite this discharge, your company has persisted in its collection efforts, thereby violating the following provisions : 1. FDCPA Violation : Section 1692e ( 2 ) ( A ) - False or Misleading Representations : Your continued attempts to collect on a debt that has been discharged in bankruptcy misrepresent the legal status of the debt, falsely implying that I am still obligated to pay. Such false or misleading representations are expressly prohibited under Section 1692e ( 2 ) ( A ) of the FDCPA. 

2. FDCPA Violation : Section 1692e ( 10 ) - Use of False Representations or Deceptive Means : By using deceptive means to collect on a debt that has been discharged, including implying potential legal action or misrepresenting the consequences of non-payment, your actions violate Section 1692e ( 10 ) of the FDCPA. This provision explicitly prohibits debt collectors from engaging in false, deceptive, or misleading practices. 

3. TILA Violation : Section 1640 ( a ) - Civil Liability for Violations of Certain Requirements : Pursuant to Section 1640 ( a ) of the TILA, attempting to collect on a debt that has been discharged in bankruptcy is a violation of TILA requirements. Your ongoing collection efforts in this regard are therefore subject to civil liability under this provision. 

In light of these violations, I am seeking a resolution and immediate cessation of all collection activities related to the alleged debt. I propose a settlement amount of {$10000.00} to compensate for the harm caused by your illegal collection practices and to resolve this matter amicably. This settlement offer is made with the understanding that Monterey Financial Services, LLC will cease all collection efforts and update its records accordingly. 

Please be advised that if a satisfactory resolution is not reached within thirty ( 30 ) days of the receipt of this letter, I will proceed with arbitration to seek remedies for the violations outlined above. This includes pursuing all available legal options, as allowed by law, to hold Monterey Financial Services, LLC accountable for its actions. 

I expect prompt attention to this matter and a written response within fifteen ( 15 ) days of receiving this letter. This response should confirm your agreement to the proposed settlement amount and provide assurances that all collection activities will cease immediately. Failure to respond or rectify this situation may result in further legal action. 

Thank you for your prompt attention to this matter. I anticipate a swift resolution and look forward to receiving your written response. 

Sincerely, XXXX XXXX XXXX XXXX and Consumer

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