Consumer complaint received 2016-07-26
Company: Midwest Recovery Systems
State: FL
Product: Debt collection
Sub-product: Payday loan
Issue: Cont'd attempts collect debt not owed
Sub-issue: Debt is not mine

Complaint:
Midwest Recovery Systems, LLC, XXXX XXXX XXXX, XXXX XXXX, XXXX XXXX, Missouri XXXX, owned by a one XXXX XXXX XXXX, recently made an untruthful collection entry onto my XXXX credit report ( XXXX XXXX ). In the entry, Midwest alleges I owe a {$510.00} debt to payday lender XXXX XXXX XXXX XXXX supposedly due in XXXX XXXX. This claim is blatantly untrue. I never applied for, nor have I ever received a payday loan or funds from XXXX XXXX XXXX XXXX, nor any other person or entity. Midwest 's negative collection entry upon my credit report with XXXX is an attempt at identity theft, identity fraud or identity impersonation ; one or all being a fabrication tantamount to extortion ( ruining my credit rating ) to coerce me into paying Midwest and/or XXXX monies that I do not owe. 

My research has uncovered that Midwest Recovery Systems, L.L.C. is not a licensed collection agency in Florida where I live. In addition, XXXX XXXX XXXX XXXX XXXX, and its numerous affiliates, have never been incorporated in Florida, nor have they ever been licensed in XXXX as a money transmitter, a payday lender, a deferred presentment provider, or a money service business. 

Moreover, I have discovered that XX/XX/XXXX, the CFPB sued XXXX XXXX, XXXX, and his multitude of companies, including XXXX XXXX XXXX XXXX XXXX XXXX al ( Case XXXX ) for using " information bought from online lead generators to access consumers ' checking accounts to illegally deposit payday loans and withdraw fees without consent, '' collecting XXXX from consumers over a 15-month period. The United States District Court for the XXXX District of Missouri granted the CFPB 's request for a temporary restraining order, freezing the defendants ' assets, and installing a receiver to oversee the business. 

In addition, I have further learned that, following an extensive investigation, on Wed., XXXX XXXX, XXXX, Manhattan U.S. Attorney XXXX XXXX announced criminal charges had been filed against the owner of XXXX and its affiliates, to wit : a one XXXX XXXX, XXXX of operating a XXXX fraudulent internet payday lending enterprise whereas the defendant extended predatory loans to more than XXXX financially struggling Americans, including victims who never sought them. '' As per the XXXX XXXX, XXXX announcement, " XXXX XXXX XXXX, the United States Attorney for the XXXX District of XXXX ; XXXX XXXX XXXX, the Assistant Director-in-Charge of the XXXX Office of the Federal Bureau of Investigation ( " FBI '' ), and XXXX XXXX XXXX, Inspector General for the Board of Governors of the Federal Reserve System ( " Federal Reserve '' ), announced today ( XXXX XXXX, XXXX ) the unsealing of an indictment charging XXXX XXXX, XXXX with wire fraud and violating the Racketeer Influenced and Corrupt Organizations Act ( " RICO '' ) and the Truth in Lending Act ( " TILA '' ) for operating a payday lending enterprise that systematically evaded state usury laws in order to charge illegally high interest rates, and for issuing payday loans to consumers who never even sought them. XXXX was arrested this morning and will be presented later today in federal court in XXXX XXXX, Missouri. The case has been assigned to U.S. District Judge XXXX XXXX. '' ( announcement continued ). 

Last week, I asked XXXX to remove the incorrect collection entry alleged by Midwest Recovery Systems, L.L.C. and/or the defunct and illegal XXXX XXXX XXXX and await to hear from XXXX that the untruthful collection entry has been removed from my credit report. 

Thank you for submitting!

Company response to consumer: Closed with explanation