Consumer complaint received 2021-04-02
Company: BlueChip Financial
State: OH
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
On or around XXXX of XXXX, I began receiving calls from someone claiming to be a process server representing Spotloan. The individual stated I had taken out a loan with Spotloan, the loan was in default, and I would be served papers outlining a court action against me. I first advised I hadn't taken any loans out with this company ( nor any other ). Further, the process server refused to provide any information I requested including the type of debt, the alleged amount, dates, etc. Following this troubling call, I contacted the alleged originator, Spotloan and spoke with XXXX XXXX, Credit Service Manager ( XXXX XXXX ). I explained I had not taken out any online loans let alone one with Spotloan. I advised they identify the bank the funds were direct deposited to. XXXX put me on hold while she dug further. When she returned, she advised that the individual who received the funds was, in fact, not me but rather a person named XXXX. She stated she'd mail a letter to me ( see attached fraud inv. attachment ) confirming the loan was not taken out by me and that I was, in fact, a victim of identity theft. Further, XXXX indicated the matter was closed and I would no longer be contacted by Spotloan or any of its affiliates. What's more, I was told this alleged debt would not be sold. 

In XXXX of XXXX, I received a letter from a company called XXXX XXXX XXXX, XXXX, instructing me to contact XXXX XXXX XXXX XXXX XXXX Vice President of Client Services ( XXXX ) to resolve. I made contact Mr. XXXX and advised this loan was not taken out by me. I reached back out to Spotloan and spoke to XXXX S. ( XXXX ) who contacted the debt purchaser ( XXXX XXXXXXXX XXXX ). They confirmed that my account had been closed ( see debt_solutions attachment ). Even though I was promised that this fraudulent activity would not be reported to the agencies, this alleged default was indeed reported not once by XXXX XXXX XXXX, but three times. Even though this was a debt I contested, I received a letter from BlueChip Financial ( dba Spotloan ) stating the debt, ( of which I never incurred ) was forgiven due to a class action settlement in Turner vs, ZestFinance, Inc. ( cs. no. 3:19-cv-293 ). Receipt of this letter further upset me as it suggests the debt was valid yet forgiven. Spotloan sent two 1099-C forms ( attached ) : the original reflecting an actual amount I was never responsible for to begin with and a corrected form reflecting {$0.00} of debt discharged. 

Today, XX/XX/XXXX, I received an offer to settle the debt from a company identified as XXXX XXXX XXXX ( see halsted attachment ). I reached out to this company to inform them that this, as explained to the other collectors, was fraudulent and requested they send a letter reversing this action as it was proven through an investigation by Spotloan to be just that, fraudulent. Knowing the behavior of these organizations, I'm now reaching out to you to address this most egregious action by multiple collectors.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with explanation