Consumer complaint received 2020-10-02
Company: ZWICKER & ASSOCIATES
State: TX
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Public record information inaccurate

Complaint:
In a letter dated XX/XX/XXXX, XXXX XXXX stated the following reason ( s ) for their decision to close my accounts.

My FICO score as provided by XXXX. 
A recent payment made to XXXX XXXX was returned unpaid by my financial institution. 
Based on my credit report, I am or have been past due with other creditors. 
Our assessment of your total revolving balances on XXXX XXXX and other credit cards as indicated by your consumer credit report. 

Before and Post receipt of this letter being provided, XXXX XXXX was notified I was a victim of identity theft, which resulted in the following reported information being adversely affected, fraudulent and incorrect : My FICO scores. 
My payment history with other creditors. 
My total revolving balances are indicated by my consumer reports. 
In Regards to my payment returned payment to XXXX XXXX referenced, it was returned due to a security closure of my checking and savings accounts. This was done to protect me from further adverse consequences of the fraud experienced. 
Federal Regulations and the card member agreement state limit my liability for fraudulent transactions resulting from identity theft. Before and after XXXX XXXX taking adverse action, I fully informed them I was a victim of identity theft and the fraudulent information reflected on my credit report as a result. I followed provided instructions as provided by XXXX XXXX and submitted countless requested documents, proving my status as a victim. I had never missed a payment on any of my XXXX XXXX XXXX, or any other correct account listed on my consumer credit reports. 
XXXX XXXX was further provided the following data : Documented evidence verifying the identity theft and fraudulent events by my other financial institutions. 
Documents Validating my identity A copy of the request to have the fraudulent information removed by the CRAs. 
A copy of my FTC Identity Theft Affidavit A copy of the FCRA 605B ( 15 U.S.C. 1681c-2 ) Copies of my Credit Report showing fraudulent  information being investigated and removed successfully. 
My last correct account statement was received. 
A copy of my official complaint to the FDIC A copy of my initial complaint filed with the Comptroller of Currency A copy of my FTC Complaint Bank Statements showing income deposited and the ability to pay.

Under 615 - 15 U.S.C. 1681m ( D ) the consumer has a right to prohibit information contained in the consumers file with any consumer reporting agency from being used in connection with any credit or insurance transaction that is not initiated by the consumer ; and ( E ) the consumer may exercise the right referred to in subparagraph ( D ) by notifying a notification system established under section 604 ( e ) [ 1681b ]. 
Additionally, in Summary of Applicable Standards for UDAAPs Unfair Acts or Practices, the Dodd-Frank Act prohibits conduct that constitutes an unfair act or practice. An act or practice is unfair when : It causes or is likely to cause substantial injury to consumers ; The injury is not reasonably avoidable by consumers ; and The injury is not outweighed by countervailing benefits to consumers or the competition. 
A substantial injury typically takes the form of monetary harm, such as fees or costs paid by consumers because of the unfair act or practice. The injury does not have to be monetary. Although emotional impact and other subjective types of harm will not ordinarily amount to substantial injury, in certain circumstances emotional impacts may amount to or contribute to substantial injury. Besides, actual injury is not required ; significant risk of concrete harm is sufficient An injury is not reasonably avoidable by consumers when an act or practice interferes with or hinders a consumers ability to make informed decisions or take action to avoid that injury. Injury caused by  transactions that occur without a consumers knowledge or consent is not reasonably avoidable. 
Adverse action is defined in the Equal Credit Opportunity Act and the FCRA to include : a denial or revocation of credit. a refusal to grant credit in the amount or terms requested.

While Regulation B defines it as a refusal to grant credit in substantially the amount or on substantially the terms requested in an application unless the creditor makes a counteroffer., and the applicant uses or expressly accepts the credit offered.

The FCRA, by contrast, defines adverse action more broadly to include section 701 ( d ) ( 6 ) of ECOA. Denial or cancellation of, an  increase in any charge for, or a reduction or other adverse or unfavorable change in the terms of coverage or amount of, any insurance, existing or applied for, in connection with the underwriting of insurance ; A denial or cancellation of, an increase in any charge for, or any adverse or unfavorable change in the terms of a government license or benefit ; or in connection with account review that is adverse to the consumers interests. 
By dramatically changing the terms of my accounts without the required notice, removing me from the member rewards program and confiscating my accrued points, taking adverse action on fraudulent prohibited information, failing to property investigate billing disputes, and closing my accounts without notice XXXX XXXX chose to act in willful noncompliance with 615 - 15 U.S.C. 1681m and the aforementioned statutes and regulations. 
The actions were taken by XXXX XXXX in response to my identity being stolen directly caused massive and substantial financial and emotional injury and concrete harm. Forfeiting my reward points, failing to fully investigate and correct billing errors, and closing my accounts initially caused me thousands of dollars in financial harm and negatively impacting my credit. This drastic impact on my credit score led to severe emotional damage and massive direct financial losses  due to my inability to reasonably avoid these adverse actions. 
The substantial and unavoidable damage was further exacerbated by the deceptive practices employed by XXXX XXXX to include : Furnishing negative information to the Credit Reporting Agencies. This led to a drastic drop in my FICO score, preventing me from recovering from the theft of my identity. As a result, XXXX XXXX prevented me from obtaining any favorable or future credit. 
Selling the debt resulting from identity theft to several 3rd party debt collectors.

Having multiple debt collectors file lawsuits to recover an invalid debt.

When informing one of the debt collectors I dispute the alleged debt, I was informed it was not able to be validated and the lawsuit would be dropped. 
Failing to drop multiple suits to obtain a debt due to identity theft as indicated. 
Illegally obtaining 2 judgments against me without my knowledge.

Admitting to failing to comply with my request for debt validation and refusing to remove the judgments obtained illegally.

Obtaining a receivership without my knowledge.

Having the receivership removed, but still refusing to remove the judgments obtained through deceptive measures.

Refusing to correct their many errors and adverse actions taken fraudulently, even after being repeatedly informed of concrete and severe emotional and financial harm they have caused in willful noncompliance.

Further evidence of willful noncompliance and violations of FCBA and DTPA laws is supported by CFPB Complaint XXXX on XX/XX/XXXX. On XX/XX/XXXX XXXX XXXX replied stating they were unable to locate certified documents I submitted and referenced in my correspondence. My initial letter submitted on XX/XX/XXXX was done by certified mail, the XXXX XXXX Document upload site, and faxed. A week after submission I called and was informed by XXXX XXXX, they had been received and would be reviewed. Yet, in the reply to CFPB Complaint XXXX, XXXX XXXX stated they did not receive the referenced documentation, contrary to the proof of receipt. The referenced documentation was even attached Complaint XXXX directly. 
I demand XXXX XXXX cease all willful noncompliance and Deceptive Practices as required by law and reinstate my accounts in good standing. As well as remove any/all collections attempts and judgments filed which were unverified and fraudulent. 
Regards, XXXX XXXX

Company response to consumer: Closed with explanation