Consumer complaint received 2017-12-21
Company: Designed Receivable Solutions, Inc.
State: CA
Product: Debt collection
Sub-product: Medical debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
This is a corrupt company that continues to lie and inflate debt with mathematical tactics that do not add up correctly. Nothing this company says can be trusted. 

On XXXX XXXX, XXXX alleged debt was {$7700.00} According to Designed Receivable Solutions, this debt has been inflated {$4400.00}. 

When asked how, this company states California law allows XXXX percent per annum, which is {$780.00} per year based on principal. 
They also state they apply interest at {$2.00} All mentioned in letter dated XXXX XXXX, XXXX. 

Errors 1 ) at {$2.00} per day. That would mean interest would be {$14.00}. However, my weekly updates and havent been consistent. Ive sent this company letters letting them know I am aware of their illegal inflation tactics. 

XXXX XXXX, XXXX increase {$51.00} XXXX XXXX, XXXX increase {$22.00} XXXX XXXX Total : {$73.00} XXXX XXXX, XXXX increase {$1.00} XXXX XXXX, XXXX increase {$11.00} XXXX XXXX, XXXX increase {$5.00} XXXX XXXX, XXXX DECREASE {$11.00} XXXX XXXX, XXXX increase of {$13.00} XXXX XXXX, XXXX increase {$10.00} XXXX XXXX, XXXX increase {$7.00} XXXX XXXX, XXXX increase {$15.00} XXXX XXXX Total : {$51.00} XXXX XXXX, XXXX increase {$15.00} XXXX XXXX, XXXX increase {$15.00} XXXX XXXX, XXXX increase {$14.00} XXXX XXXX, XXXX increase {$13.00} XXXX XXXX, XXXX increase {$2.00} XXXX XXXX Total : {$59.00} XXXX XXXX, XXXX increase {$15.00} XXXX XXXX, XXXX increase {$15.00} XXXX XXXX, XXXX increase {$15.00} XXXX XXXX, XXXX increase {$21.00} XXXX XXXX Total : {$66.00} XXXX XXXX, XXXX increase {$9.00} XXXX XXXX, XXXX decreases {$9.00} Error 2 XXXX has less days than XXXX yet the interest is more. XXXX had the biggest increase. 

Error 3 If the debt was acquired by this company XXXX XXXX. At {$2.00} that equals XXXX of interest. 

However, this is not the case. According to letter dated XXXX XXXX, XXXX the interest is {$4600.00} as of date. 

More inconstancies of inflated debt. 

Error 4 The letter sent XXXX XXXX, XXXX from this company with verification was created on XXXX XXXX, XXXX. If this company has had said debt since XXXX XXXX, how does this company not have any records. Why was this record recently generated? 

If this company has inflated the interest on said debt how do I know the initial debt was inflated? 

This company also fails to comment on why they have reported this account renewed/ refinance to Equifax XXXX 

This company is also in violation of Fair Debt Collection Practices Act ( FDCPA ) and Fair Credit Reporting Act ( FCRA ) : 1. False representation of the amount owed. Unfair practices : interest on top of debt 1. Section 808 ( 2 ) Legality of charges. A debt collector may attempt to collect a fee or charge in addition to the debt if either : a ) The charge is expressly provided for in the contract creating the debt and the charge is not prohibited by state law, or ( b ) The contract is silent but the charge is otherwise expressly permitted by state law. 
In other words, your company can not illegally inflate this debt.How are the charges for XXXX more than the preceding months? Why does the amount fluctuate each week? 

2. Collectors can not threaten to sue or file charges against you, garnish wages, take property, cause job loss, or ruin your credit when the collector can not or does not intend to take the action. [ 15 USC 1692e ] 807 ( 5 ) 3. A collector can not continue to collect on a debt after you 've made a written request to verify the debt as  long as the request was made within 30 days of the collector 's written notice. [ 15 USC 1692g ] 809 ( b ) On XXXX XXXX, XXXX and XXXX XXXX, XXXX, letters were sent to your office and my written requests to verify the debt interest were ignored, while interest was still added weekly. Now they responded to my letter dated XXXX XXXX, XXXX and claim to have responded XXXX XXXX, which is a LIE! The letter was dated XXXX XXXX, XXXX. 

4. After receiving your written dispute, the collector must stop collecting on the debt until you have received verification. [ 15 USC 1692g ] 809 ( b ) Ever since I began disputing accuracy of this account, yourcompany has continued to add interest. I asked about the interest and your company continues to ignore my request and instead collect on the debt before providing this interest verification. 
5. Communicating false credit information. 15 U.S.C. 1692e ( 8 ) prohibits the collector from : Communicating or threatening to communicate to any person credit  information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. 

I have been reporting these errors since XXXX XXXX, XXXX and your company simply responds with updated/verified responses. 

6. Reporting information with actual knowledge of errors 15 U.S. Code 1681s2 A As of XXXX XXXX, XXXX, Equifax reports this alleged account as refinanced and renewed. On, XXXX XXXX, XXXX and XXXX XXXX, XXXX, your company was made aware of this error yet still continues to report.

7. Any person who knowingly and willfully obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined under title 18, United States Code,  imprisoned for not more than 2 years, or both. 619. Obtaining information under false pretenses [ 15 U.S.C. 1681q ] On XXXX XXXX, XXXX as XXXX XXXX and on XXXX XXXX, XXXX as XXXX XXXX XXXX, your company has accessed my credit report resulting in a hard inquiry. In both cases your company has stated I applied for a new installment loan. I DID NOT APPLY FOR ANY LOANS. Once the statute of limitations for this alleged debt expired, your company no longer has a permissible reason to obtain my credit report. 

This company continues to lie and every time I uncover the lie they change their story.

Company response to consumer: Closed with explanation