Consumer complaint received 2022-11-26
Company: Allied Collection Services, Inc. (Nevada)
State: CA
Product: Debt collection
Sub-product: Other debt
Issue: Took or threatened to take negative or legal action
Sub-issue: Threatened or suggested your credit would be damaged

Complaint:
Allied Collection Services Inc., herein referred to as Allied, located in XXXX XXXX continues to damage my credit on a debt that has been paid in full. They have relinquished their duties to follow the guidelines under the FDCPA and the new rules issued by the CFPB. I have a letter dated XX/XX/XXXX from Allied referencing the account number XXXX, the creditor ( XXXXXXXX XXXX XXXX XXXX  ), and the debt ID XXXX. The letter reads " In consideration of payments received, as of XXXX, your debt referenced above is paid in full. If this debt was reported to the major consumer reporting agencies, they will be notified the debt has been paid-in-full. '' Allied did take off the collection from the 3 reporting agencies. On or about XX/XX/XXXX Allied placed a collection entry of each of the 3 bureaus for the same debt that had been paid In XX/XX/XXXX, the same debt that they issued a paid in full letter. Allied simply bypassed all the rules and guidelines in place, both state and federal, and made no effort to notify me, they simply went straight to the 3 reporting agencies and falsely placed a new collection on an old debt that they acknowledged was paid in full. I have had conversations with Allied and sent letters dated XXXX, XXXX, and XXXX requesting debt Validation of this claimed debt that they say is owed and specifically requesting that they stop all collection activities specifically reporting to the credit bureaus until this is resolved. Allied has refused to validate the debt and on 2 separate occasions belligerently placing collection of this old, paid debt and passing it off as new. They have fraudulent done so despite being taken off after I disputed this entry and had it taken off. Somehow, they can place the same collection back on to my credit report and has destroyed my score. My score has suffered because Allied continues to place collection on my credit report and each time it has the appearance of a new debt old and this is not the case. Allied sole complaint is that they claim the bank rejected payment at the end of XX/XX/XXXX, over a month from when they sent the paid in full letter. I have never heard of a single collection company who will issue a paid in full letter until the payments clears. Allied did not follow proper channels of disclosing the debt and sending proof to validate their claim. They simply issued a collection to XXXX, XXXX and XXXX knowing that at some point I would contact them once I became aware of this new collection which has already been paid. Allied has made no apologies, have not supplied ANY validation to support their claim and refuse to acknowledge any of the 3 letters sent and signed by them as received, to stop collection activities and provide debt validation as is the protocol. Allied continues to play by their own rules and have recklessly damaged my credit rating that I had worked so hard to improve. Each time I dispute with the credit reporting agencies and the collection is taken off ; they fraudulently get it back on my credit reports. I can supply the letter I have sent and their signed receipt. I can also provide the paid in full letter issued by Allied. I respectfully request your help in resolving this matter. Thank you.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation