Consumer complaint received 2020-12-03
Company: Lake City Credit
State: VA
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
I was originally contacted by XXXX XXXX ( which I believe is a shadow company with Lake City Credit ) in XXXX for a collection of a debt. I believe original debt existed, but I swore I had settled years earlier, but had not kept good records. I contacted the bank where the debt originated, but we could not determine whether the current collector was valid or not. The bank 's records did not go far enough back. Out of fear of being reported I settled the debt with XXXX, even though I was not sure it was legitimate. They agreed to settle for about half of the debt and I received a letter stating the account was paid in full. That letter is dated XX/XX/XXXX 

Yesterday I opened a notice from Lake City Credit datedXX/XX/XXXX stating that I should recall I have an outstanding balance and I had been on a payment plan that has been interrupted. It has the correct date that I paid the agreed upon settlement amount and the correct amount. It uses the same original bank account number and internal ID. It falsely states that I have failed to respond to previous attempts to assist me and they conclude I am avoiding the obligation to pay. 

I did some research last time. Both company websites have almost the exact same wording. Several XXXX  reports sound exactly like my situation, even from the same bank. It appears these two companies are one in the same and are trying to convince people these are separate debts owed to get payment. 

I called Lake City Credit this morning using the number on the mailed notification. When I explained my situation the man told me he would transfer me to his supervisor, who sounded exactly like the first gentlemen, so I have my doubts there. I had trouble understanding his name due to his accent or I would have provided his name. I explained the debt was settled with XXXX XXXX under the same internal ID number. Only after I persisted did he tell me that Lake City took over XXXX XXXX in the last quarter of XXXX so he needed to look at back records. ( This is interesting, because XXXX XXXX XXXX website is active with aXX/XX/XXXX copyright date. ) He did and it showed that a payment was made a I received a letter and the account was marked as paid in full. He then proceeded to try and convince through a winding and incorrect explanation of how overdrawn accounts work that this was somehow a different debt that the other one or something. Essentially, he was still trying to convince me that I owed on this debt. I directly told him that was incorrect. I pointed out all the false information. I said the internal ID and original account number are the same. This notification says I was on a payment plan, which I was not. It says I have failed to respond to previous attempts, which is false. I told him I would be reporting this fraudulent attempt to collect a debt to the credit reporting agencies, as well as the attorney general in his state and mine. Suddenly, he thought it best that we come to some kind of agreement and asked me to give him 24 so he could discuss the matter internally and come back with a resolution and something in writing to me via email. I told him that needed to happen. I am not going to wait to see if he honors that agreement. Even if he does, this was fraudulent and it makes me fairly certain the first attempt was fraudulent as well and I just did not have good enough records at the time to fight it properly. I am reporting this to your office as directed by the Virginia Attorney General 's office. I have already reported to the Texas Attorney General where the company is located and will report to XXXX, who I understand is obligated to report to the other two agencies. 

Judging by my situation and the others reported through XXXX, I believe these two companies are scamming people and have successfully scammed me in the past. I will not allow them to do so again, but I fear for others who are in the position I was originally. I am happy to provide all of the written records I have to aid in an investigation and to discuss the matter further if need be.

Company response to consumer: Closed with explanation