Consumer complaint received 2022-12-13
Company: Resurgent Capital Services L.P.
State: CA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
On or about XX/XX/XXXX, I filed a complaint with the CFPB regarding the improper reporting of a credit account on my credit report by PYOD LLC who was attempting to collect an alleged debt for an account I formerly held with XXXX XXXX XXXX. The outcome of that complaint resulted in the removal of PYOD LLC ( a non-affiliate ) from all of my credit reports. After further consideration of the laws afforded to me as a federally protected person, PYOD LLC ( a non-affiliate ) and XXXX XXXX XXXX  owe me remedies, as afforded to me through federal and state law, for improperly reporting my credit account to the three Credit Reporting Agencies ( XXXX  ), XXXX ( a non-affiliate ), XXXX ( a non-affiliate ), and XXXX ( a non-affiliate ) ; sharing my personal information between XXXX XXXX XXXX, the XXXX  ( non-affiliates ) and PYOD LLC ( a non-affiliate ) without my expressed written consent ; selling my personal information without my written consent to a non-affiliate ( i.e. PYOD LLC ) ; misrepresentation of facts by alleging and communicating to me that a debt was owed to PYOD LLC ( a non-affiliate ) on behalf of XXXX XXXX XXXX  when PYOD LLC ( a non-affiliate ) willingly and knowingly " purchased the debt '' from XXXX XXXX XXXX thus nullifying any alleged debt to XXXX XXXX XXXX ; and, damaging my credit report and credit reporting history by reporting this alleged debt to the XXXX  which misrepresented my creditworthiness and caused me financial and material damages as it prevented me from obtaining a more favorable credit rating ultimately resulting in me being denied credit, having a lower available credit line, and/or having a higher interest rate on certain lines of credit. The specific violations of law committed by PYOD LLC ( a non-affiliate ) and XXXX XXXX XXXX  are, but are not limited to : The Privacy Act of 1974 and 15 USC 1681 ( 4 ) which states that I have the right to privacy.

15 USC 1681 which states that there must be a permissible purpose for this information to be shared 15 USC 1681a which provides for the definitions and rules of construction where specifically subsection ( d ) Consumer Report. 
( XXXX ) In general.The term consumer report means any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumers credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumers eligibility for ( A ) credit or insurance to be used primarily for personal, family, or household purposes ; ( B ) employment purposes ; or ( C ) any other purpose authorized under section 1681b of this title. 
( XXXX ) Exclusions.Except as provided in paragraph ( XXXX ), the term consumer report does not include ( A ) subject to section 1681s3 of this title, any ( i ) report containing information solely as to transactions or experiences between the consumer and the person making the report ; ( ii ) communication of that information among persons related by common ownership or affiliated by corporate control ; or ( iii ) communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity, before the time that the information is initially communicated, to direct that such information not be communicated among such persons ; ( B ) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device ; ( C ) any report in which a person who has been requested by a third party to make a specific extension of credit directly or indirectly to a consumer conveys his or her decision with respect to such request, if the third party advises the consumer of the name and address of the person to whom the request was made, and such person makes the disclosures to the consumer required under section 1681m of this title... Both XXXX XXXX XXXX  and PYOD LLC ( a non-affiliate ) failed to meet and/or adhere to any of these definitions and violated my federally protected rights when they engaged in a monetary transaction to buy and sell my personal and financial information.

15 USC 1681b which states that there must exist a permissible purpose and that ( a ) In general, subject to subsection ( c ), any consumer reporting agency may furnish a consumer report under the following circumstances and no other : ( XXXX ) In accordance with the written instructions of the consumer to whom it relates. Neither XXXX XXXX XXXX nor PYOD LLC ( a non-affiliate ) obtained my written instructions. 

15 U.S. Code 1681q - Obtaining information under false pretenses - In the attached letter from XXXX XXXX XXXX, it states that XXXX  XXXX had no knowledge of how PYOD LLC ( a non-affiliate ) obtained my information nor that they were attempting to collect any alleged debt from me. However, in PYOD LLC 's ( a non-affiliate ) response letter to the complaint filed with the CFPB on or about XX/XX/XXXX, PYOD LLC asserts that they " purchased '' the " debt '' from " XXXX XXXX XXXX ''. Thus, the two ( 2 ) letters conflict in how PYOD LLC obtained my personal information which was under XXXX XXXX 's fiduciary and material care from approximately XXXX to XXXX. This also means that PYOD LLC ( a non-affiliate ) may have obtained my personal information under false pretenses and/or stole my information from XXXX XXXX XXXX , and/or XXXX XXXX XXXX was negligent in protecting my personal information. This also means that either XXXX XXXX Bank and/or PYOD LLC is in violation of 15 USC 1681r , which is punishable by a fine under title 18 and/or no more than 2 years in XXXX. 

! 5 USC 1681 s-3 affiliate sharing. XXXX XXXX XXXX, the XXXX, and PYOD LLC ( a non-affiliate ) have all violated this code as PYOD LLC and the XXXX are non-affiliates to XXXX XXXX XXXX, and one another. None of these companies had the legal right to share my information and violated this code. 

15 USC 1692b Acquisition of location, under abusive debt practices, states Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shall ( 2 ) not state that such consumer owes any debt ; ( 4 ) not communicate by post card ; ( 5 ) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt. PYOD LLC ( a non-affiliate ) did violate this code by committing these acts. 

PYOD LLC ( a non-affiliate ) also violated 15 USC 1692c ( a ) Communication with the consumer which states that generally, Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt ( b ) Communication with third parties which states ; Except as provided in section 1692b of this title, without the prior consent of the consumer given directly to the debt collector, or the express permission of a court of competent jurisdiction, or as reasonably necessary to effectuate a postjudgment judicial remedy, a debt collector may not communicate, in connection with the collection of any debt, with any person other than the consumer, his attorney, a consumer reporting agency if otherwise permitted by law, the creditor, the attorney of the creditor, or the attorney of the debt collector. PYOD LLC ( a non-affiliate ) violated this code when it reported to the CRAs, my alleged debt with XXXX XXXX XXXX  negatively affecting my credit score and overall creditworthiness. 

PYOD LLC violated 15 U.S. Code 1692e and 15 USC 1681q- False or misleading representations by communicating that they had the legal right to collect any alleged debt on behalf of XXXX  XXXX XXXX XXXX PYOD LLC also violated this code by asserting that a debt was still owed to XXXX XXXX XXXX, when in fact PYOD LLC had purchased the debt making the debt owed to XXXX XXXX XXXX  " void '', " cancelled '', " redeemed '', and/or otherwise " paid in full ''. I had/have no contractual obligation to PYOD LLC and have not, nor am currently engaged in any financial or other transaction with PYOD LLC XXXX Thus PYOD LLC falsely and misleadingly attempted to construct a contract where none existed. 

Due to these numerous violations of my federally protected rights, I am seeking federal and state remedies afforded to me under the governing laws and codes against the aforementioned companies.

Company response to consumer: Closed with explanation