Consumer complaint received 2018-05-14
Company: Southern Management Systems Inc.
State: FL
Product: Debt collection
Sub-product: Other debt
Issue: False statements or representation
Sub-issue: Attempted to collect wrong amount

Complaint:
In XX/XX/XXXX, I was Evicted from my apartment after two years of living there and paying on time. They gave me no consideration before moving forward with evicting me. In XXXX the Item showed up on my credit report from Southern Managment systems. I was later contacted by the company asking when I would pay the debt. I explained to them that I need a list stating what is owed. They stated they would comply. I reviewed it and although I did not agree with all the items I did not know what else to do. I offered to settle the debt for all the money I had. 1100 . They denied the amount stating, " The original debtor would not accept it. '' I stated if the amount is sent to them or " Charged off '' then they are the ones who are responsible for the debt, not the original apartment complex. Even so, if that the case I should be able to speak directly with the complex as I don't see the point in having a middleman. Well, that's where it prompted me to do my research on consumer debt. The company " Southern Management Systems states they are a debt collector. This would mean the apartment complex sold my debt to them so now I owe them. The problem is Southern Management Systems doe not have a valid business license. 

According to Florida Fair Debt Collection Practices Act 559.553 Registration of consumer collection agencies required : ( 1 ) After January 1, 1994, no person shall engage in business in this state as a consumer collection agency or continue to do business in this state as a consumer collection agency without first registering in accordance with this part, and thereafter maintaining a valid registration. 

( 2 ) Each consumer collection agency doing business in this state shall register with the office and renew such registration annually as set forth in s. 559.555. 


This means this company has ZERO business operating in the state of Florida. To make matters worse, You can never get in contact with anyone at the office to discuss or resolve your issues. This company often purchases from low-income communities. They buy the debt expecting the tenants limited income and access to resources to be used against them. They have so many court cases against them ranging from violating Florida Fair Debt Collection Practices Act 559.72 Prohibited practices generally : ( Claim, attempt, or threaten to enforce a debt when such person knows that the debt is not legitimate or assert the existence of some other legal right when such person knows that the right does not exist ) to Florida Fair Debt Collection Practices Act 559.715 Assignment of consumer debts.This part does not prohibit the assignment, by a creditor, of the right to bill and collect a consumer debt. However, the assignee must give the debtor written notice of such assignment within 30 days after the assignment. The assignee is a real party in interest and may bring an action in a court of competent jurisdiction to collect a debt that has been assigned to such assignee and is in default.

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