Consumer complaint received 2016-11-18
Company: Midwest Recovery Systems
State: PA
Product: Debt collection
Sub-product: Payday loan
Issue: Cont'd attempts collect debt not owed
Sub-issue: Debt resulted from identity theft

Complaint:
On XXXX/XXXX/XXXX on my way to work I received an alert that my credit file had changed. Soon as I got in to work I pulled my credit report and found that Midwest Recovery had posted to my credit file a collection for {$680.00}. I immediately started panicking and wondering what to do as I did n't understand what was going on. The credit file said the original creditor was XXXX XXXX, which I never heard of before. I knew there was some type of fraudulent activity going on, but could n't pin point the issue. That evening I spent countless hours researching the Internet on both companies. Needless to say, I could n't gather any information about this XXXX XXXX company except that it 's some kind of scam pay day loan service. I never had any dealings with this company or a payday loan. The next morning I decided to call XXXX Recovery and I spoke with XXXX at ext XXXX. She explained to me that a loan was taken out XXXX XXXX, XXXX and funds were deposited into a XXXX Bank account. Another red flag came up. I never had a XXXX XXXX account, so I begin to get more nervous and explained to XXXX that I will be going to XXXX XXXX and hopefully I can catch who did this and put this to rest. I went to XXXX XXXX and they ran my social, name and address information in their system and nothing came back for a hit on any of my information. So I was a bit relieved to know that " this person '' did n't fully gain too much control and open an account in my name, but I was still at a loss because I was clueless on resolving the issue. I sent out a certified letter to Midwest and the Credit Bureaus and made the disputes online for the fraudulent loan and credit file. XXXX also explained to me that she will be flagging the account as fraud and I will need to go to the police station to file a police report. Once I file the police report she said fax the report in or send it by email ( which she provided me both info ). I went to the police station and explained everything top to bottom to the police officer and he said this sounds more like a scam and said for me to call the company Midwest back and to gather original documents, identification used in the fraud, signatures and information of the XXXX XXXX. So I called back in while still at the police station and explained to the guy what the police officer was needing me to do in order for him to make a proper police report. This guy was very, very rude and decided to keep cutting me off. He told me they do n't have any of my documents, that the debt was purchased from third party. So I asked him if I could get the information to XXXX XXXX so I can call them myself and he insisted they do n't have any information for them either. I got really upset and told the guy this is seriously damaging my credit file and I need to get this resolved ASAP. He says to me " Look we marked your file as fraud and it will be falling off your credit report, okay '' then hung up the phone. My next step was I went home and sent an email of the conversation to Midwest and asking them to confirm what this employee told me. I have yet to receive ANY response from them whatsoever. My credit score has dropped so dramatically, because of this and it is very irritating and hurts to see I ca n't get this resolved. I know the company had to have opened the email, but is more than likely stalling and damaging my life with this. Furthermore, I NEVER received any phone calls, email or letters about this so called " debt '' " loan '' from XXXX XXXX nor Midwest recovery. They just up out of the blue post to my credit file and say I owe a debt I have no clue about. I ca n't begin to tell you how frustrated I am. And I feel like I may need to take legal actions against this company if they do n't stop reporting false information on my credit file and my credit score needs to go back to where it has been, excellent.

Company response to consumer: Closed with explanation