Consumer complaint received 2023-12-07
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: MD
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:
Subject : Complaint Against XXXX ( Original Creditor : XXXX XXXX XXXX ) for Violation of Consumer Rights and FCRA Non-Compliance Dear Sir/Madam, I am writing to lodge a formal complaint against XXXX ( XXXX Creditor : XXXX XXXX XXXX ) concerning their handling of my credit account ( Account # : XXXX ). This complaint pertains to serious violations of my consumer rights and non-compliance with the Fair Credit Reporting Act ( FCRA ). 

Background of the Issue : Account and Reporting Details : The account in question was opened on XX/XX/XXXX, and is categorized as a collection account. Despite being paid, it has been reported with a status of " Collection/Chargeoff '' as of the last report on XX/XX/XXXX. 
Disputed Information : It has been noted in the account comments that the information was disputed by the consumer and meets FCRA requirements. However, the adverse reporting remains unresolved. 
Key Concerns : Violation of FCRA Standards : The FCRA mandates accurate and fair reporting of credit information. The reporting of this account as a collection/chargeoff post payment is inaccurate and misleading, negatively impacting my credit report and score. 
Failure to Update Personal Information : Notification of Address Change : I had proactively informed Original Creditor : XXXX XXXX XXXX of my change of address following a significant incident of mail theft. This notification was provided in a timely manner, with the expectation of ensuring the security and accuracy of communication related to my account. 
Neglect and Consequences : Despite this notification, XXXX XXXX : XXXX XXXX XXXX failed to update this critical personal information in their records. This neglect resulted in several adverse consequences : Misdirected Communications : Important account statements, notices, and potentially corrective actions were sent to an incorrect address. This not only deprived me of the opportunity to respond appropriately to account-related communications but also exposed me to increased risk of further identity theft and financial fraud. 
Uninformed Financial Decisions : Due to the lack of receipt of these communications, I was unable to make informed decisions regarding the handling of my account, leading to the escalation of the issue to a collection/chargeoff status, which was both unwarranted and preventable. 
Increased Vulnerability to Fraud : The continuation of sending sensitive financial information to an old address, particularly after reporting a mail theft incident, significantly heightened my vulnerability to further fraudulent activities. This represents a severe lapse in safeguarding customer information, a fundamental responsibility of financial institutions. 
Impact on Credit Report : The resultant misreporting as a collection/chargeoff in my credit report is a direct outcome of Original Creditor : XXXX XXXX XXXX XXXX failure to act on my updated information. This misreporting has unjustly damaged my credit standing, with long-term implications for my financial health. 


Adverse Impact on Credit Standing : The incorrect reporting of this account has unjustly affected my creditworthiness, leading to potential challenges in securing credit or favorable interest rates in the future. 
Legal Grounds for Complaint : FCRA Compliance : Under the FCRA, I am entitled to have accurate, fair, and fully substantiated information reported on my credit file. The persistence of inaccurate collection status contravenes these rights. 
Consumer Protection Violation : As a consumer, I am protected under various federal laws against unfair and inaccurate credit reporting practices. The actions of XXXX in this regard have been grossly negligent and harmful. 
Obligation to Provide Proof of Verification by Collection Agency : Mandated Verification Process : In compliance with the Fair Debt Collection Practices Act ( FDCPA ), specifically under Section 809 ( Validation of debts ) [ 15 USC 1692g ], a collection agency is required to provide consumers with a detailed verification of any debt they claim is owed. This verification process is especially crucial in cases like mine, where there is an original creditor involved, in this instance, XXXX XXXX XXXX 
Verification Requirement in This Case : Given that the account has been reported as a collection/chargeoff and flagged as verified by the collection agency, it is legally incumbent upon them to furnish substantial proof of this debt. This proof should include : Original Creditor Documentation : Detailed documentation or ledger indicating the original amount of debt, the account 's history, and transactions, as well as the transfer of the debt from the original creditor to the collection agency. 
Authority to Collect : Evidence that the collection agency is authorized to collect this debt on behalf of the original creditor. 
Account Accuracy Confirmation : Confirmation that the amount being collected accurately reflects the original debt and any applicable fees or charges. 
Lack of Adequate Verification : To date, I have not received satisfactory verification of this debt, which raises significant concerns about the validity and accuracy of the reported collection/chargeoff status on my credit report. This lack of transparency and adherence to the FDCPA standards is not only concerning but also potentially indicative of an unjust credit practice. 
Definition and Relevance of Identity Theft : According to the U.S. Department of Justice, identity theft involves the unauthorized use or misuse of another individual 's personal information for fraudulent purposes. In my case, the failure to update my personal information, specifically my address, despite being duly notified, has led to circumstances that parallel identity theft. 
Circumstances Mimicking Identity Theft : The misdirected communications and unauthorized actions on my account, due to the address not being updated, have resulted in my personal information being used in a manner that I did not authorize. This negligence has facilitated financial decisions and activities under my name without my consent, closely mirroring the essence of identity theft. 
Violation of Legal Standards : The mishandling of my personal information and the subsequent adverse effects on my account and credit report constitute a violation of my rights under various laws, including the Fair Credit Reporting Act ( FCRA ) and potentially the Identity Theft and Assumption Deterrence Act, enforced by the U.S. Department of Justice. These laws are designed to protect individuals from unauthorized use of their personal information and to ensure accurate and fair reporting of credit information. 
Breach of FCRA Requirements : Specifically, the FCRA mandates accurate and fair reporting of credit information and provides consumers with the right to have incorrect or incomplete information corrected. The actions leading to the adverse reporting on my credit report, stemming from the failure to update my address, are in direct violation of these requirements. 
Emotional and Psychological Impact : Personal Crisis Beyond Financial Harm : This situation has caused immense emotional and psychological distress. The realization that my personal information has been mishandled in a way that aligns with identity theft has led to significant anxiety and uncertainty, affecting my daily life and sense of security. 
Demand for Justice and Corrective Measures : Urgent Need for Action : I implore the responsible parties to rectify this situation immediately. This includes correcting the inaccurate information on my credit report and ensuring such a breach of personal information does not occur again. 
Call for Legal Compliance and Protection : I also urge the relevant authorities, including the Consumer Financial Protection Bureau, to investigate this matter in the context of identity theft and FCRA violations. It is imperative that my case be viewed through the lens of identity theft and treated with the seriousness it warrants

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation