Consumer complaint received 2018-05-01
Company: Penn Credit Corporation
State: NJ
Product: Debt collection
Sub-product: Other debt
Issue: Written notification about debt
Sub-issue: Didn't receive notice of right to dispute

Complaint:
Hello, On XX/XX/XXXX I checked my credit report to see that I had an account in collections. I was extremely confused, as I have never had a late payment for anything in my life, and still don't. The name of the company on the report was Penn Credit Corporation and the amount was for {$350.00}. I was never contacted by Penn Credit Corporation in any medium, via phone, mail, or email. I had called Penn Credit that day inquiring about the collection. Over the phone, I was told by a representative that they purchased the debt from XXXX XXXX XXXX. I immedialy called XXXX XXXX XXXX to discuss the situation. I was told that the debt was for an unsettled bill. I explained to XXXX XXXX  XXXX that I had discontinued my service on XX/XX/XXXX, and I have an email from XXXX XXXX XXXX confirming my stoppage of service on XX/XX/XXXX. On XX/XX/XXXX I received a bill from XXXX XXXX XXXX for {$420.00} due on XX/XX/XXXX. On XX/XX/XXXX, I have a payment confirmation from XXXX XXXX XXXX regarding my account. I have zero other correspondence from XXXX XXXX XXXX via phone, mail, or email. I was told by the representative at XXXX XXXX XXXX that the debt was sold to Penn Credit Corporation, and that any records they had of the debt would be passed to them. 

I called back XXXX XXXX asking for more information from the debt, I was told that I owed XXXX XXXX XXXX {$350.00} for an unpaid electric bill. I spoke to them informing them that I had payment confirmation. They did not acknowledge this statement, and when I asked how this would get removed from my credit reports I was told that I would need to pay the debt. I continued to ask further questions multiple times. At the time, I was unaware that I could dispute this further once it was on my credit report, I was never told that a dispute was an option, and I was never notified in writing or email exactly what I was paying for. I asked the representative from Penn Credit multiple times over the course of the phone call if paying it would get it removed, and I specifically used the word removed, from my report and she responded multiple times that once payment was made it the debt would be removed from my account. My credit score went from a XXXX to a XXXX overnight, and I was beginning to apply for car loans so I opted to just pay the debt rather than deal with the hassle of ruining my credit when I desperately needed it. 

I waited a few months until XX/XX/XXXX and I checked my credit report again. This time, it has said paid, but still showed up on all three reports. I called Penn credit and this time I was greeted with the upmost disrespect from the get-go. I had called in good faith inquiring about a previous phone call, and I was cut off within the first XXXX words I spoke and I was told Penn Credit does not delete disputes. I was stunned. I was deceived into believing that this would be deleted when payed. I informed the representative that I had two previous phone calls back in XX/XX/XXXX where one of the representatives had assured me that paying this would get it removed. The representative simply stated that they did not remove debts and transferred me to her supervisor. I politely, and calmly, asked the supervisor about my phone call from the previous year in which I was coerced into what I thought was a pay-to-delete debt. The supervisor, XXXX XXXX XXXX acknowledged that I had spoken with two people back in XXXX but refused to comment on the content of that phone call. I was told that she could download the phone calls and listen to them. I asked her to do that and if she would get back to me she told me that she would review them and make decisions but would not get back to me. I was then virtually intimidated and verbally abused by XXXX XXXX when I inquired about the original debt. During the phone call, she had made a comment about how XXXX XXXX XXXX was the owner of the debt. I had asked why it was reflecting as Penn Credit on  the reports and she had said that we were working with them. When I spoke to XXXX XXXX XXXX they confirmed that they sold the debt, so I informed this to XXXX XXXX who insisted that they did not own the debt. When I asked then, who owned the debt she said XXXX XXXX XXXX again. As I tried to confirm with her that XXXX XXXX XXXX said that they do not own the debt she confirmed this with me. I repeated back to her that she just contradicted her previous statement and I wanted to confirm for a final time that the debt is theirs and not XXXX XXXX  XXXX, she again contradicted herself and went back to the previous statement, which according to XXXX XXXX XXXX is not correct. She then rushed me off the phone quite rudely. 

At this point. I have no idea who the debt was owed to, and my questions of where {$350.00} exact was owed in the first place. I have never met someone who's electric bill was an exact number let alone an increment of {$50.00} so it was surprising to me. I am still trying to figure out exactly how I was late for a payment on an account that didn't have service for a month prior, and how I owed on an account I have a payment confirmation for. 

The company PENN CREDIT has been nothing but a nightmare filled with shady business tactics that they employ to coerce money out of their clients filled with false promises and contradictions. XXXX XXXX XXXX has been unhelpful in resolving this and also contradicts what is being told by Penn Credit. I have gone to enormous lengths to have a random unpaid bill that I still am unsure if I even owed removed from my record, to no avail. I feel like these two companies have gone above and beyond to deceive me and refuse to acknowledge any of my concerns. I hope that the CFPB can assist me in this matter. 

Thank you.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation