Consumer complaint received 2023-03-12
Company: Interstate Credit Control
State: MN
Product: Debt collection
Sub-product: Other debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt was paid

Complaint:
A collection agency in Minnesota calling itself both Negotium & Interstate Credit Control reported a false debt to the credit bureaus XX/XX/XXXX after I had disputed it, showing that the bill Negotium used to verify it actually proved that the collection was for money that I do not owe, because the original creditor, XXXX XXXX XXXX XXXX XXXX in XXXX, MN, retained more than enough of my funds ( damage deposit and prepaid rent ) to cover the costs. I was never contacted by XXXX XXXX and the bill was from after I had moved out ( under both VAWA and MN Law 504B.206 ) of my unit on XX/XX/XXXX, due to XXXX XXXXXXXX. 

When I originally disputed this debt I informed Negotium that I did not owe the money because the original creditor XXXX XXXX XXXX XXXX XXXX XXXX XXXX had more than enough to cover the bill from my damage deposit and under the law, with my damage deposit and full rent of the month I moved out paid, I could not be charged for anything else and was free to go. I also informed them that pursing this money ( I didn't owe ) after I had moved out was a violation of VAWA ( Violence Against Women Act ) and MN Domestic Violence Law 504B.206. Negotium replied that they validated the debt and sent me a copy of a bill from XXXX XXXX XXXX that showed not only that they had more than enough funds from me to cover it, but that they had written VAWA next to my damage deposit amount and then pocketed it instead of using it to make the unit ready for the next tenant. The fact that they disclosed that I used VAWA to move out of the unit is in violation of both VAWA and MNs Domestic Violence Confidentiality Laws. I again formally disputed the debt in another longer and more specific letter on XX/XX/XXXX. ( *attached ) I did not hear back from Negotium at all after that. Then I see on XX/XX/XXXX Negotium/ICC reported this disputed false debt to the credit bureaus without another word to me about it, knocking my score down 35-50 points. I have never had a late payment on anything in my life. This false debt report could cause me serious harm that I did nothing to deserve. 

I am in the process of contacting the credit bureaus to ask for this to be removed, but as of yet, nothing has been. 

The unsigned bill provided to me when I disputed my case shows the following : It shows that I had paid {$490.00} as a security deposit, plus there is the interest of {$11.00}, and an additional amount of {$230.00} credited as " prepaid rent '', for a total of {$740.00} prepaid by me and retained by XXXXXXXX XXXX. 
The amount billed was {$540.00}. Deducting the damage deposit and interest leaves ( {$540.00} - {$500.00} = ) {$39.00}. The amount of prepaid rent credited to me is {$230.00} leaving ( {$230.00} - {$39.00} = ) {$190.00} in overpayments on my part that should have been refunded. 
On the expense sheet, next to where the damage deposit and acquired interest are listed, XXXX XXXX has written VAWA. This is because I attempted to invoke my rights under the VAWA as a tenant in a covered federal housing program in order to escape XXXX XXXXXXXX. 
That XXXX XXXX took my security deposit without using it for its intended purpose and has now shared this information is in direct violation of VAWA. 
( Minnesota ) NOTICE TO OWNERS AND MANAGERS REGARDING THE VIOLENCE AGAINST WOMEN ACT ( VAWA ) : You may not require a tenant covered by VAWA to pay any amount or forfeit any security deposit funds under state law as a condition of his or her move for health and/or safety. 

The Violence Against Women Act 5.2007 ( c ) Confidentiality. Any information submitted to a covered housing provider under this section, including the fact that an individual is a victim of XXXX  XXXX, dating XXXX, XXXX assault, or stalking ( confidential information ), shall be maintained in strict confidence by the covered housing provider ) ; ( 1 ) The covered housing provider shall not allow any individual administering assistance on behalf of the covered housing provider or any persons within their employ ( e.g., contractors ) or in the employ of the covered housing provider to have access to confidential information and ( 2 ) The covered housing provider shall not enter confidential information described in paragraph ( c ) of this section into any shared database or disclose such information to any other entity or individual Minn.. Stat. 504B.206 Subd. 2.Treatment of information. ( a ) A landlord must not disclose : ( 1 ) any information provided to the landlord by a tenant in the written notice required under subdivision 1, paragraph ( b ) ; ( 2 ) any information contained in the qualifying document ; ( 3 ) the address or location to which the tenant has relocated ; or ( 4 ) the status of the tenant as a victim of violence. ( b ) The information referenced in paragraph ( a ) must not be entered into any shared database or provided to any person or entity. 

Nothing in the collection agencys response to my dispute demonstrated that this claim is valid. Instead it showed that I did NOT owe this debt and had in fact overpaid funds to my housing provider. It also shows that XXXX XXXX XXXX had pocketed my security deposit and without applying it to the things it legally was meant to cover. Their response also provided proof that my use of XXXXAWA, which identifies me as being a victim of XXXX XXXXe while living at XXXX XXXX XXXX, has been disclosed by XXXX XXXX XXXX to employees, a collection agency, and is now entered into an unknown number of shared databases, which is a direct violation of not only VAWA but of MN State Law as well, both of which I formally asserted my rights under in order to legally end my lease so I could move out for safety reasons. 

I respectfully asked them that they cease and desist all collection attempts considering the illegality of the situation and the fact that I do not owe this debt. I also asked that they keep any identifiable information about me confidential. 


Please help me to remove this unfair false debt and restore my credit. Thank you. 
XXXX XXXX XXXX

Company response to consumer: Closed with explanation