Consumer complaint received 2020-12-03
Company: First Credit Services Inc.
State: WA
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
First Credit Services of XXXX, XXXX  sent me a collections bill dated XX/XX/XXXX stating that I owed XXXX  XXXX  of XXXX, XXXX  {$250.00}. I later received a phone call from First Credit Services on XX/XX/XXXX ( according to their records and to my recollection around that time frame ) following up on the bill, at which time I told the First Credit representative that I was never a member of that gym and have never lived in or visited XXXX, XXXX. The rep asked me if I had been a member of any gym recently and I replied XXXX XXXX XXXX XXXX in XXXX, XXXX  where I have resided since XXXX before relocating from XXXX where I had lived from XXXX. I ended the call stressing that I never had a membership or account with any gym by that name and that this was not my debt. 



Today, XX/XX/XXXX, I received credit alerts from credit monitoring services stating that a collections account was added to my credit report. When I checked XXXX ( screen shot included with this complaint ), it shows a Collection Account with date opened XX/XX/XXXX, in the amount of {$250.00} ( rounded up from the {$250.00} First Credit claimed I owed ), but the Original Creditor is listed as XXXX XXXX XXXX, the information I volunteered to their representative, not on the bill they sent ( copy included with this complaint ). 



On XX/XX/XXXX, my domestic partner XXXX ( XXXX ) XXXX  received a call from First Credit Services claiming he owed {$200.00} for a gym membership debt with XXXX XXXX in XXXX XXXX. Again, we live in XXXX XXXX  and have never had a gym membership with XXXX XXXX or ever been to XXXX, XXXX. Then on XX/XX/XXXX, he received a letter/bill demanding payment from First Credit Services in XXXX, XXXX. We called their number to let them know that he never had this account. Their representative claimed the account was opened in XX/XX/XXXX. We XXXX  XXXX XXXX XXXX XXXX  during the call, and that search revealed that the company went out of business in XX/XX/XXXX, more than 2 years before his supposed contract date. 



Subsequent to that phone call, XXXX immediately filed a complaint with CFPB, complaint XXXX citing the above information regarding his interaction with First Credit Services. He received CFPBs status update stating that the Company responded on XX/XX/XXXX stating the following : We are in receipt of the referenced complaint and appreciate the opportunity to resolve the consumers concern. The account was placed with our office for collection on XX/XX/XXXX, soon thereafter the client advised the account was sent in error and recalled the account. Any questions he may have concerning the account should be directed to the creditor. If you or Mr. XXXX have any questions or concerns our Compliance office is available at XXXX Ext. XXXX. Our office is open Monday - Friday XXXX to XXXX EST. 



Now today, XX/XX/XXXX, I received a falsified collections account on my credit report from First Credit Services. 



To resolve this situation, the First Credit Services needs to have this false collections account removed from my credit report and assert that this is not my debt. 



Further, I recommend that as a federal agency, CFPB have First Credit Services investigated broadly for these business practices. The systematic way in which First Credit tried to collect fraudulent fees from my household wreaks of a concerted effort rather than a simple error on the part of their client. Gyms are closed during COVID-19, and XXXX  offered us the opportunity to freeze our membership which we did so that we would not incur charges for services that we could not use due to public health mandates. First Credit appears to be perhaps taking advantage of the COVID crisis, claiming people owe their clients money. 



As military veterans who were in the process of closing on our dream farm home with a VA loan which closed on XX/XX/XXXX, and as XXXX  employees whose careers could depend on good personal financial histories, XXXX and I were stressed about these collections attempts. Had First Credit Services falsified collection hit his credit report during the purchase of the farm property, it very likely would have killed our dream prospect. First Credit should be investigated, and sanctioned if warranted, to prevent these practices from being visited on other consumers who may not have the savvy to access their credit information instantly and contact CFPB to rectify such a terrible situation during these difficult financial times in our country.

Company response to consumer: Closed with explanation