Consumer complaint received 2019-09-13
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Diversified Consultants, Inc. (MA)

This complaint is based on violations of the FCRA, the FDCPA and the Massachusetts Consumer Protection Act 940 CMR sec. 7 and MGL Chapter 93A sec. 2 by Diversified Consultants ( Diversified ). 

XXXX On XX/XX/XXXX, I reviewed my credit report and saw a collection account reported by Diversified. This debt was already disputed thru a previous debt collector long before Diversified reported the account. In short, Diversified reported the debt after it was disputed and not validated. 

XXXX_ On XX/XX/XXXX, I mailed to Diversified a letter advising them that they can not report a debt after it was disputed and not validated. This is supported by FTC Staff Opinion XXXX XX/XX/XXXX : [ w ] e view reporting to a consumer reporting agency as a collection activity prohibited by 1692g ( b ) after a written dispute is received and no verification has been provided. 

___ In my letter dated XX/XX/XXXX, I also gave Diversified an opportunity to validate the debt by providing the materials required by Massachusetts law and the FDCPA. 

XXXX_ Diversified received my letter on XX/XX/XXXX via certified mail receipt number XXXX XXXX XXXX XXXX XXXX. 

___ At no time did Diversified validate the debt as they failed to provide the materials required by the FDCPA and Mass. law 940 CMR 7.08 ( 2 ). 

XXXX On XX/XX/XXXX, I disputed the account thru the credit bureaus. My dispute included the following : I am not responsible for this account AND [ Diversified ] failed to validate the debt by not providing the required materials under Massachusetts law and the FDCPA. 

___ Despite the failure and/or refusal of Diversified to validate the debt, they falsely instructed the credit bureaus that the account was verified in order to wrongly prevent its removal from my credit report. 

___ The courts have decided that reporting a debt to a credit bureau is an attempt to collect a debt. Because reporting a debt to a credit reporting agency can be seen as a communication in connection with the collection of a debt, the reporting of such a debt in violation of the provisions of 1692e ( 8 ) can subject a debt collector to liability under the FDCPA. XXXX XXXX XXXX , XXXX, XXXX. XXXX, XXXX XXXX XXXX ( XXXX. XXXX XXXX. XXXX, XXXX ). In XXXX v. XXXX XXXX. XXXX, XXXX , XXXX XXXX XXXX XXXX ( XXXX XXXX. XXXX ) the XXXX XXXX Court of Appeals. assume [ d ] without deciding that the reporting of the debt to XXXX constitutes a collection activity. 

___ In a recent decision on the FCRA against a debt collector who verified unsubstantiated information to the credit bureaus, the court ruled as follows : A jury could also find that because [ the furnisher ] retained the right to seek account-level documentation through its agreements with [ the creditors ] [ it ] behaved unreasonably when it reported the accounts as verified without first exercising those rights. XXXX XXXX XXXX XXXX XXXX , XXXX., XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ). ___Based on the aforementioned facts ( and supported by the attached Exhibit ), Diversifieds conduct includes the following : ___ ( a ) Violation of the FCRA 15 USC 1681s-2 ( b ) ( 1 ) ( A ) in that they failed to conduct a reasonable investigation of my dispute thru the credit bureaus.

___ ( b ) Violation of the FCRA 15 USC 1681s-2 ( b ) ( 1 ) ( B ) in that they failed to consider all relevant information provided in my dispute to the credit bureaus.

___ ( c ) Violation of the FCRA 15 USC 1681s-2 ( b ) ( 1 ) ( E ) in that they failed to modify, delete, and/or permanently block the reporting of inaccurate or unverified information on my credit reports.

___ ( d ) Violation of the FDCPA 15 USC 1692g ( b ) in that they failed to cease collection of a debt without providing me verification of the debt, or a copy of a judgment, or the name and address of the original creditor.

___ ( e ) Violation of the MDCPA 940 CMR 7.08 ( 2 ) and MGL c.93A sec . 2 for continuing collection activity while failing to provide me with all of the required materials that would validate the debt under Mass. law.

___ ( f ) Violation of the FDCPA 15 USC 1692e ( 2 ) ( A ) in that they misrepresented the character, amount of legal status of the debt.