Consumer complaint received 2023-09-19
Company: ENCORE CAPITAL GROUP INC.
State: TX
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
I sent this dispute letter to Midland Credit Management. XXXXMIDLAND CREDIT MANAGEMENT XXXX XXXX XXXX XXXX XXXX XXXX California XXXX NOTICE TO AGENT IS NOTICE TO PRINCIPAL NOTICE TO PRINCIPAL IS NOTICE TO AGENT. 

Subject : Dispute of Alleged Debt and Request to Cease and Desist Dear Sir/Madam, I am writing to dispute the alleged debt that your company, Midland Credit Management XXXX XXXX attempting to collect from me. It has come to my attention that your company has reported this debt to credit bureaus, and I am deeply concerned that this inaccurate and unjust information XXXX negatively impact my creditworthiness, causing significant harm to my financial standing. I demand, with utmost urgency, that you immediately cease and desist from any further collection attempts, including reporting this alleged debt to credit bureaus. 

I draw your attention to the Fair Credit Reporting Act ( FCRA ), specifically XXXX XXXX Code XXXX - Definitions ; rules of construction, which lays the foundation for the regulatory framework governing consumer credit reporting. This statute defines critical terms relevant to my case and is fundamental to understanding the rights and responsibilities of both consumers and credit reporting agencies. 

The term " consumer '' under this statute is defined as an individual, and I, XXXX XXXX, fall squarely within this category. 

Furthermore, it is crucial to recognize that 15 U.S. Code 1681 - Congressional Findings and Statement of Purpose articulates Congress 's intent when enacting the FCRA. It emphasizes the significance of accuracy and fairness in credit reporting and underscores the importance of maintaining consumer privacy and confidence in the financial system. These congressional findings serve as a guiding principle for interpreting and enforcing the FCRA.

Within this context, I insist that your company, as a furnisher of information to consumer reporting agencies, strictly adhere to the FCRA, especially the section that specifically addresses your duties, 15 U.S. Code 1681s2 - Responsibilities of furnishers of information to consumer reporting agencies. This section imposes a duty on furnishers like Midland Credit Management to provide accurate information to consumer reporting agencies. Specifically : Under 15 U.S. Code 1681s2 ( a ) ( 1 ) ( A ), you are prohibited from furnishing any information to consumer reporting agencies if you know or have reasonable cause to believe that the information is inaccurate.

Under 15 U.S. Code 1681s2 ( a ) ( 1 ) ( B ), you are prohibited from furnishing information to consumer reporting agencies if you have been notified by the consumer that specific information is inaccurate, and that information is indeed inaccurate.

I categorically assert that the alleged debt you are attempting to collect is both inaccurate and unjust, as it has been previously written off by the original creditor in accordance with IRS guidelines. According to IRS regulations, a written-off debt is considered canceled debt and is no longer legally owed. Consequently, I affirm that I owe no debt to your company.

In light of these legal obligations and the factual basis of my dispute, I formally request that you provide me with all documentation related to this alleged debt, including but not limited to : A copy of the original signed contract or agreement between myself and your company.

Detailed information regarding the debt 's origin, including the original creditor 's information and the date of the debt.

Documentation demonstrating that your company possesses the legal authority to collect this alleged debt.

Until such time as you can conclusively and unequivocally prove that I owe this debt to your organization and that your collection activities are in strict compliance with all applicable laws and regulations, I insist that you immediately and unconditionally cease and desist from any further collection attempts and the reporting of this alleged debt to credit bureaus.

Furthermore, I demand that you promptly rectify any inaccuracies and personal details that you may have reported to credit bureaus without my explicit authorization. These inaccuracies have caused substantial harm to my financial reputation and well-being.

Now, I also want to bring your attention to another relevant law, 15 U.S. Code 6802 - Obligations with respect to disclosures of personal information, which pertains to the obligations of financial institutions when disclosing nonpublic personal information. While this law primarily applies to financial institutions, it underscores the importance of protecting consumer information and maintaining accuracy, which are core principles of the FCRA as well.

Please be aware that my rights under the FCRA are not to be taken lightly. Failure to comply with this formal dispute and cease-and-desist request may result in serious legal consequences, including potential legal action on my part to safeguard my rights under the FCRA and other relevant consumer protection laws. I am fully prepared to exercise all legal avenues at my disposal to protect my interests.

This letter serves as formal notice to your agency of my dispute and demands, and you are hereby put on notice of my intent to enforce my rights under the FCRA, 15 U.S. Code 6802, and other applicable laws. I expect a comprehensive written response to this dispute within 30 days of your receipt of this letter.

Your prompt attention to this matter is not only expected but imperative. The inaccuracies in question have already caused undue harm to my credit profile, and it is imperative that they are rectified promptly.

-- - I sent this letter last week on the 15 of September but I heard nothing back yet because of course it's a mailed letter. I also, sent digital disputes using credit karma TransUnion, Equifax, and Experian. Experian removed this account immediately due to it being unverifiable and by not giving any permissible purpose Under 15 US code 1681b permissible purposes of consumer reports. Transunion I sent a dispute on credit karma. Transunion tells me the account is verified and I'm trying to figure out how. How are they verifying it? Did they get my signature from that company saying I give access to my consumer report? Or are they just saying verified? All credit accounts are insured before the lender gives out credit. Once a lender writes off the the balance for tax purposes and the account states it is " written off '' you no longer legally have to pay that debt under IRS provisions and regulations once a debt is written off it is considered a canceled debt per the IRS. So I'm trying to figure out what debt are they collecting if there is no debt. How much did they pay for the alleged debt? How much did they pay for my private information? I never gave explicit authorization for Midland Credit Agency to access my consumer report. Furthermore, 15 US Code 1681a defines crucial terms relevant to my case. It introduces the term " Exclusions '' which signifies that certain categories of information are not to be included within a consumer report. Notably, exclusions refer to information excluded from the definition of a consumer report and this definition es essential to understanding the limits and scope of the information that may be reported to consumer reporting agencies. Furthermore, the practice of reporting debt when there is none is perplexing. Paragraph 4 of this statute states that the term " consumer report '' does not include a " report containing information solely as to transactions or experiences between the consumer and the person making the report. So why are Midland Credit Management XXXX XXXX XXXX XXXX XXXX ) reporting information Soley as to transactions and experiences ( Debt ) on my consumer report without my authorization? Under 15 U.S. Code 6802 ( b ) related to the opt-out provision, it is important to note that a financial institution like Comenity Capital Bank ( where Midland Credit Management allegedly bought the debt ) may not disclose non-public personal information to a non-affiliated third party, such as credit reporting agencies like Debt Collection Agencies, XXXX, XXXX, and XXXX, unless they clearly and conspicuously disclose to the consumer in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title that such information may be disclosed to such third party. Additionally, the consumer is given the opportunity before the time that such information is not disclosed to such third party and the consumer is given an explanation of how to exercise that non-disclosure option. I want to emphasize that under 15 U.S. Code 6802, I was never given an explanation of how the consumer can exercise that non-disclosure option. The original creditor says there is no debt so again what they are trying to collect and who gave them explicit authorization to write, create, say, or publish anything on my consumer report. This now deems the report inaccurate and a violation of consumer protection laws and consumer privacy.

Company response to consumer: Closed with non-monetary relief