Consumer complaint received 2018-12-14
Company: CCS Financial Services, Inc.
State: MA
Product: Debt collection
Sub-product: I do not know
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
This complaint is based on violations of the FCRA, the FDCPA and the Massachusetts Consumer Protection Act including 940 CMR sec. 7 and MGL Chapter 93A sec. 2 ( hereinafter the MCA ) by XXXX XXXX XXXX , XXXX ( hereinafter XXXX  ). 

___ On XX/XX/XXXX, I reviewed my credit reports and saw a collection account reported by XXXX. I only discovered the account by its publication on my reports, where I had no opportunity to dispute the debt, which prompted me to dispute it. 

___ On XX/XX/XXXX, I mailed to XXXX  a demand letter pursuant to Chapter 93A of the Mass. Consumer Protection Act. My demand letter advised XXXX  that they violated the [ MCA ] because they reported the account in a name other than that of the creditor, in violation of 940 CMR 7.07 ( 21 ). The Massachusetts debt collection regulations does not permit the name of a debt collector to be published to any credit bureau, as this constitutes and unfair or deceptive means to collect or attempt to collect a debt. My demand letter sought the removal of the wrongly reported account from my credit reports. I have attached a copy of my letter which cites several violations of the MCA and the FDCPA. 

___ In my demand letter, I reasonably described XXXX  unfair or deceptive acts or practices as described above, and the injuries suffered. 

___ XXXX received my demand letter on XX/XX/XXXX by Certified Mail. 

___ XXXX  did not make a reasonable written tender of settlement within 30 days of receiving my demand letter as required by M.G.L. c.93A. 

___ XXXX misconduct as described above was willful and knowing. 

___ My letter dated XX/XX/XXXX also included a request for validation of debt. I requested all of the required materials under Mass. law 940 CMR 7.08 ( 2 ). These materials include ( a ) all documents, including electronic records or images, which bear the signature of the debtor and which concern the debt being collected, and ( b ) a complete transaction history which reflects the date and amount of payments, balances, and charges concerning the debt. My letter also included the very same form letter requesting validation of debt as provided on the website of the CFPB. 

___ At no time did XXXX validate the debt by providing the materials under 940 CMR 7.08 ( 2 ), nor did they reply with the answers and materials as set forth in the CFPBs dispute form.

___ On XX/XX/XXXX, I disputed the account thru the credit reporting agencies. My dispute included that ( a ) I have no knowledge of the account with [ XXXX  ], ( b ) that [ XXXX  ] failed to validate the debt as required by the [ MCA ] and the Consumer Financial Protection Bureau, and ( c ) that [ XXXX  ] reported the account in a name other than that of the creditor, in violation of 940 CMR 7.07 ( 21 ).

___ XXXX falsely verified the account to the credit reporting agencies, despite their failure to validate the debt, and where they continued to report the account in a name other than that of the creditor, in violation of 940 CMR 7.07 ( 21 ) and MGL c,93A sec. 2. 

___ In a recent decision against another debt collector who verified information to the credit bureaus where the consumer challenged ownership of the debt ( and where the collector did not have and/or provide the required documentation ), the court ruled as follows : [ a ] reasonable jury could find that the documentation reviewed was insufficient to prove that the [ two accounts ] belonged to [ plaintiff ] and that [ the furnisher ] therefore had a duty to report the account as can not be verified. A jury could also find that because [ the furnisher ] retained the right to seek account-level documentation through its agreements with [ the creditors ] [ it ] behaved unreasonably when it reported the accounts as verified without first exercising those rights. XXXX XXXX XXXX XXXX XXXX , XXXX, XXXX XXXX  XXXX. XXXX ( XXXX. XXXX XXXX ) ___Based on the aforementioned facts ( and supported by the attached Exhibit ), XXXX conduct includes the following : ___ ( a ) Violation of the FCRA 15 USC 1681s-2 ( b ) ( 1 ) ( A ) in that they failed to conduct a reasonable investigation of my dispute thru the credit reporting agencies.

___ ( b ) Violation of the FCRA 15 USC 1681s-2 ( b ) ( 1 ) ( B ) in that they failed to review all relevant information provided in my dispute to the credit bureaus ( including the fact that they falsely verified the account without providing me the materials they relied upon to validate the debt ).

___ ( c ) Violation of the FCRA 15 USC 1681s-2 ( b ) ( 1 ) ( E ) in that they failed to modify, delete, and/or permanently block the reporting of inaccurate or unverifiable information on my credit reports.

___ ( d ) Violation of the FDCPA 15 USC 1692g in that they failed to validate the debt and were and are continuing collection activity thru use of the credit reporting system.

___ ( e ) Violation of the MDCPA 940 CMR 7.08 ( 2 ) and MGL c.93A sec . 2 for continuing collection activity while failing to provide all of the required materials that would validate the debt under Mass. law.

___ ( f ) Violation of the MDCPA 940 CMR 7.07 ( 21 ) and MGL c.93A sec . 2 in that they reported the account in a name other than that of the creditor ___ ( g ) Violation of the FDCPA 15 USC 1692 ( e ) in that they have taken action that can not legally be taken.

___ ( h ) Violation of the FDCPA 15 USC 1692e ( 10 ) in that they employed false or deceptive means to collect a debt.

___ ( i ) Violation of the FDCPA 15 USC 1692e ( 2 ) ( A ) in that they misrepresented the character, amount of legal status of the debt.

Company public response: Company believes the complaint is the result of a misunderstanding
Company response to consumer: Closed with explanation