Consumer complaint received 2023-06-14
Company: Bread Financial Holdings, Inc.
State: NJ
Product: Debt collection
Sub-product: Credit card debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Sued you in a state where you do not live or did not sign for the debt

Complaint:
Dear Sir/Madam, I am writing to formally dispute the debt collection actions taken by your agency regarding the debt allegedly owed by me. I have discovered numerous violations of consumer credit and banking laws, which have resulted in significant harm to my financial standing, mental well-being, and business operations. I kindly request that you address these violations, rectify the damages caused, and provide appropriate compensation for the distress caused. 
XXXX. Illegal Sale of Debt : 2. It has come to my attention that you unlawfully sold my debt without providing me with the required 1099-C form, both to me and the IRS. This action is a clear violation of the Fair Debt Collection Practices Act ( FDCPA ) and Internal Revenue Service ( IRS ) regulations, which explicitly require the provision of such forms in cases of debt discharge. I demand an immediate explanation for this violation and a remedy for the harm caused by your illegal actions.

3. Harassment and Scare Tactics : 4. Your attempts to intimidate and scare me into making payment through aggressive tactics, including threatening to sue me, are a direct violation of the FDCPA. Such conduct is strictly prohibited under federal law, as it causes unnecessary stress and distress. I insist that you cease all harassment and scare tactics immediately.

5. Credit Reporting Inaccuracies : 6. Your agency 's repeated and incorrect reporting of my account status has resulted in substantial harm to my credit score. These inaccuracies are in direct violation of the Fair Credit Reporting Act ( FCRA ), which mandates accurate and fair reporting of consumer credit information. As a consequence, I have been unjustly denied approvals for essential business-related matters, severely impacting my ability to operate my business. I demand the immediate correction of all inaccurate credit reporting and the restoration of my credit score to its rightful state.

I am well aware of my rights as a consumer, and I insist that you comply with the following national laws and codes regarding consumer credit and banking violations in the United States : 1. Fair Debt Collection Practices Act ( FDCPA ) 2. Internal Revenue Service ( IRS ) regulations on debt discharge and reporting 3. Fair Credit Reporting Act ( FCRA ) 4. National Banking Laws and Regulations Furthermore, I specifically draw your attention to consumer credit and banking laws applicable in the state of New Jersey ( NJ ) that protect consumers from unfair debt collection practices : 1. New Jersey Fair Debt Collection Practices Act ( NJFDCPA ) 2. New Jersey Consumer Fraud Act ( NJCFA ) I request that you conduct a thorough investigation into the violations outlined above and respond to this dispute within 30 days from the date of this letter. Failure to address and rectify these violations, as well as provide appropriate compensation for the harm caused, may result in legal action being pursued against your agency.

Please direct all correspondence regarding this matter to the address listed above. I expect prompt attention to this dispute, as well as a resolution that fully remedies the damages caused by your agency 's unlawful actions.

Thank you for your immediate attention to this matter.

Company response to consumer: Closed with non-monetary relief