Consumer complaint received 2024-09-16
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: Regional Management Corporation (VI)

I am writing to formally request your assistance regarding an identity theft issue that has resulted in a fraudulent account being opened in my name with Regional Finance, account number XXXX. I did not authorize this account and had no knowledge of it until I reviewed my credit report and discovered the account. This fraudulent account is negatively impacting my credit score and financial standing. 

In response to this discovery, I filed an identity theft report with the Federal Trade Commission ( FTC ) and have contacted both Regional Finance and the credit reporting agencies, providing my FTC Identity Theft Report and other supporting documentation. However, I have chosen not to include my government-issued ID in this dispute, as I believe the documentation provided is sufficient to prove the account is fraudulent. Despite my efforts, this account has not yet been removed from my credit report. 

Legal Violations : Failure to promptly remove this fraudulent account, after receiving the proper documentation, is in violation of several consumer protection laws : 1. Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681c-2 : The FCRA mandates that credit reporting agencies block and remove fraudulent information from a consumers credit report once provided with proof of identity theft, such as my FTC Identity Theft Report. Continued reporting of this account is a violation of the FCRA.

2. Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 : Any collection activity on the fraudulent account constitutes a violation of the FDCPA, which prohibits collection efforts on debts that have been identified as fraudulent or incurred through identity theft.

3. Fair and Accurate Credit Transactions Act ( FACTA ), 15 U.S.C. 1681g : FACTA reinforces the consumers right to dispute fraudulent information and mandates that credit reporting agencies and furnishers correct any inaccuracies in the report. Non-compliance with FACTA could lead to legal action.

4. Gramm-Leach-Bliley Act ( GLBA ) : The failure to protect my personal information, resulting in the continued reporting of the fraudulent account, is a breach of GLBA. Regional Finance and any credit reporting agency involved are required to safeguard my personal data, and failure to remove this account is a breach of those responsibilities.

5. Federal Trade Commission Act ( FTCA ), 15 U.S.C. 45 : Continuing to report or collect on a fraudulent account after receiving an FTC Identity Theft Report could be deemed an unfair or deceptive practice, which is a violation of the FTC Act. This could expose both Regional Finance and any other involved party to legal repercussions.

6. Identity Theft and Assumption Deterrence Act : As a victim of identity theft, my rights are protected under this act, and any failure to correct fraudulent accounts or cease collection activities could lead to further legal liability.

Potential Legal Action : Should Regional Finance or the credit reporting agencies continue to refuse to remove this fraudulent account or fail to cease collection efforts, I reserve the right to take legal action. Specifically : Lawsuit under the FCRA : Violations of the FCRA can result in a lawsuit against both the credit reporting agencies and Regional Finance. I may be entitled to recover actual damages, statutory damages ( up to {$1000.00} per violation ), punitive damages, and attorney fees and costs.

Lawsuit under the FDCPA : If debt collectors pursue collection on this fraudulent account, I may sue for statutory damages ( up to {$1000.00} ), actual damages, and attorney fees. This could apply to Regional Finance or any collection agency acting on their behalf.

FTC or Private Lawsuit for Unfair Practices : Violating the Federal Trade Commission Act by engaging in unfair or deceptive business practices, such as continuing to report a known fraudulent account, may lead to action by the FTC. Alternatively, I can pursue a private lawsuit seeking damages for the harm caused by these practices. 

I am hopeful that the CFPB can facilitate the removal of this fraudulent account without the need for legal action. However, if Regional Finance or the credit reporting agencies fail to comply, I will not hesitate to pursue all available legal remedies.