Consumer complaint received 2017-05-04
Company: SQUARETWO FINANCIAL CORPORATION
State: CA
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
Cach LLC ( o wned by  Squaretwo Financial Services ) is   falseley reporting a collection account on my credit report to  XXXX  and  XXXX . I sent a debt validation/dispute letter via certified mail in   XXXX   XXXX  , and  Cach LLC responded, but they sent no verification. Cach LLC 's response  letter included   XXXX   violations of the California Fair Debt Practices Act ( CFDCPA pursuant to California  Civil Code Division 3, Part 4 Title 1.6., 1.6C., 1.6C5., and 2.97. In addition, Cach LLC also violated 5  corresponding federal violations under the Fair Debt Pracitces Act ( FDCPA ), which are enforceable under state law in small claims pursuant to the Rosenthal Act.      As a result, I followed up with a second letter in  XXXX  acting in a good faith effort to resolve the issue.  Cach LLC re sponded with a carbon copy version of their first response. It was apparent that nobody read my second letter, nor did they care to comment on their  XXXX  California state law violations of the  CFDCPA. I gave Cach LLC court esy calls to discuss a resolution, but once again they refused to verify the debt or remove it from my credit reports.     In  XXXX  of  XXXX  I filed a small claims lawsuit agains t Cach LLC ( SquareTwo Financial Services ) in the state of California. Cach LLC promptly made a motion to vacate t he proceedings based upon an existing bankruptcy filing on their behalf. Therefore, as required by law, the judge had no choice but to vacate the hearing, because  Cach LLC has  indeed filed for bankruptcy as of  XXXX  of  XXXX .     I once again reached out to  Cach LLC and as ked them to remove the debt due to their bankruptcy status, but they said they would continue to collect debt while actively filing for bankruptcy.     At this point, no consumer in the United States has any legal recourse against  Cach LLC due to their bankruptcy status. Which means that they have all the freedom in the world to violate any and all laws under the Fair Debt Collections  Practices Act, and nobody can sue them for their violations due to their bankruptcy status. I can not believe this is legal, because this debt collection company has  free reign to violate all debt collection laws at will now that they have filed bankruptcy.     I request that the CFPB  review  my documents and verify the  XXXX  violations of the  CFDCPA committed by Cach LLC, and pursue regulatory actions against this entity for its calculated violations. Cach LLC is violating the law in an effort to increase their ability to collect debts with no legal accou ntability to consumers due to the protection provided by their current bankruptcy status.     Upon the conclusion of a successful investigation by the CFPB, where they were to find no verification of this erroneous debt ; I would hope that the CFPB can enforce an injuctive action against   Cach LLC requiring them to remove the false debt from my credit reports.
These are the CFDCPA violations committed by Cach LLC : California Civil Code Division 3 Part 4 : Title 1.6. : 1 )    1785.25 ( a ) Cach LLc furnished inaccurate information to the CRA 's 2 ) 1785.25 ( c ) continued reporting to CRA 's without marking account " disputed '' 3 ) 1785.26 ( b ) never sent notice before reporting negative information 4 ) 1785.26 ( c ) did not mail negative info notice within  30 days  of reporting 5 ) 1785.26  ( d ) Cach LLC liable for the previous violatio ons 6 ) 1785.30 Cach LLC did not acknowledge demand/dispute within  30  days Title 1.6C. : 7 ) 1788.17 pursuant to the Rosenthal Act all   FDCPA violations are inclusive   : 8 ) 807 ( 2 ) ( A ) False representation of character amount 9 ) 807 ( 8 ) failure to communicate a disputed debt as disputed 10 ) 807 ( 10 ) use of false representation to collect a debt 11 ) 807 ( 11 ) 1st  communication failed to disclose " this is a debt    collector '' 12 ) 808 ( 1 ) collection of amount not authorized by agreement Title 1.6C.5.
13 ) 1788.52 ( a ) Failed to possess mandatory documents prior to communication 14 ) 1788.52 ( a ) ( 1 ) failed to provide proof of sole ownership of debt 15 ) 1788.52 ( a ) ( 2 ) failed to separately identify the charge-offed balance 16 ) 1788.52 ( a ) ( 3 ) failed to note the date of default and the date of last payment 17 ) 1788.52 ( a ) ( 4 ) failed to provide original creditor info ( acct #, name & address ) 18 ) 1788.52 ( a ) ( 5 ) failed to provide my name and address at time of charge off 19 ) 1788.52 ( a ) ( 6  ) failed to provide name & address of previous debt owner  s  20 ) 1788.52 ( b ) failed to provide copy of contract or monthly statement 21 ) 1788.52 ( d ) ( 1 ) failed to include " you may  request '' notice in 1st communication 22 ) 1788.52 ( d ) ( 2 ) failed to include time barred debt notice in 1st communication Title 2.97. : 23 ) 1812.700 ( a ) failed to include Rosenthal Act  notice in 1st communication

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 monetary relief