Consumer complaint received 2024-11-02
Product: Debt collection — Telecommunications debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: CL Holdings LLC (TX)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX Phone : XXXX Email : XXXX Date : XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX, Iowa XXXX Re : Formal Dispute and Request for Investigation of Inaccurate and Bad Faith Credit Reporting Dear CFPB Representative, I am submitting this formal dispute against XXXX, XXXX, XXXX, Jefferson Capital Systems XXXX XXXX, and XXXX XXXX for erroneous, unverified, and bad faith reporting that has caused substantial financial and reputational harm, disrupted long-term financial plans, and required a significant investment of my time, including substantial evening and weekend hours. Despite multiple dispute attempts, these companies have continued reporting inaccuracies without providing proper documentation. I request the CFPBs assistance in investigating these practices, enforcing FCRA standards, and ensuring the removal of these erroneous accounts from my credit file. 

Background and My Efforts to Resolve Since XXXX, I have actively rehabilitated my credit to meet essential financial milestones, including securing housing, financing for graduate school, and saving for a down payment. These inaccuracies have damaged my creditworthiness, consumed valuable time, and jeopardized my professional reputation. I recently closed my XXXX account in good standing in XX/XX/XXXX before switching to XXXX XXXX XXXX  XXXX as confirmed by the XXXX deactivation notice. Despite my best efforts, I have faced continued bad faith reporting and insufficient documentation from these entities. 

XXXX. XXXX XXXX XXXX Account Number : XXXX ( XXXX ) Issue : XXXX reported an alleged XXXX debt as delinquent since XX/XX/XXXX without prior notice. I discovered this debt only through a XXXX XXXX notification about XXXX new report. This account originated with XXXX XXXX, where I previously disputed it, as it is not my debt. My legitimate XXXX account was closed in good standing earlier this year, with no unpaid balances. 
Bad Faith Reporting : XXXX acted in bad faith by attempting to collect and report a debt that I do not owe, based on erroneous information from XXXX XXXX. They failed to notify me directly and sent correspondence to an outdated, misformatted address ( XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX  XXXX, XXXX, TX XXXX ), making contact impossible. 
Professional and Financial Impact : As a XXXX XXXX XXXX in private equity, my professional reputation and credit profile are highly sensitive to negative reporting. This erroneous report has already damaged my credit score and undermined my ability to maintain essential financial relationships. 
Desired Outcome : I request the removal of this account from my credit report, or, alternatively, that XXXX provide verifiable documentation proving my obligation to this debt. 
XXXX. XXXX and XXXX XXXX : XXXX and XXXX continue reporting the disputed XXXX debt, despite numerous dispute submissions and my request for its removal. XXXX updated the account without deleting it, and XXXX has failed to take any meaningful action. 
Efforts and Impact on My Professional Standing : To maintain my financial credibility, I addressed all prior obligations during my XXXX  school application process in XXXX and again in XXXX for housing. XXXX and XXXX refusal to remove these erroneous entries has severely impacted my credit and professional reputation. 
Desired Outcome : I request that XXXX and XXXX permanently delete this account or, at minimum, provide documented verification from XXXX or XXXX XXXX proving my liability for the debt. 
XXXX. Jefferson Capital Systems and XXXX Account Ending : XXXX ( Alleged XXXX  Account ) Issue : Jefferson Capital Systems reported a balance of {$750.00} for an account ending in XXXX, allegedly from XXXX. I have not had a XXXX account in over 10 years, and no outstanding balance was owed upon ending my relationship with XXXX. Jefferson Capital Systems never contacted me regarding this debt, nor did they attempt to collect it, as they likely recognized it was invalid. Subsequently, XXXX acquired the alleged debt from Jefferson Capital Systems, also without notifying me or providing documentation. 
Bad Faith Reporting and Lack of Validation : Both Jefferson Capital Systems and XXXX have acted in bad faith by transferring and reporting an unsubstantiated debt without validation or attempts to notify me. Jefferson Capitals use of incorrect account details further reflects a failure to adhere to FCRA standards, while XXXX acquisition and reporting perpetuate this harmful error without due diligence. 
Desired Outcome : I request the removal of this account from my credit report by both Jefferson Capital Systems and XXXX, or substantial evidence verifying my responsibility for this debt, including all necessary validation documentation. 
XXXX. XXXX XXXX Account XXXX : XXXX ( XXXX ) Issue : XXXX XXXX XXXX XXXX this disputed XXXX account, later transferred to XXXX, without notifying me or providing an opportunity to dispute it. I only discovered the debt through a XXXX XXXX notification about XXXX report. XXXX XXXX failed to notify me directly, used an outdated and misformatted address, and reported the debt close to the XXXX expiration, immediately passing it to XXXX, reflecting a bad faith attempt to re-establish the debt. 
Bad Faith Efforts to Re-establish Debt : XXXX XXXX demonstrated bad faith by failing to validate the debt, using incorrect contact information, and re-establishing the debt at the XXXX mark before promptly transferring it to XXXX. 
Impact on Financial and Professional Standing : The failure to validate this debt and refusal to contact me in good faith has had a damaging impact on my financial standing and reputation. 
Desired Outcome : I request XXXX XXXX delete this account from my credit report or provide verifiable evidence of my liability, including documentation of all required notices and validations. 
Request for Compensation for Time and Reputational Damage Due to the extensive time I have invested since XX/XX/XXXX, XXXX dozens of hours on weekends and evenings when my professional schedule allowedI am requesting compensation for approximately XXXX hours spent on phone calls, dispute documentation, and follow-ups. Given my role as a XXXX XXXX XXXX in private equity, my time is highly valuable, with an estimated hourly rate of {$500.00}. Therefore, I am requesting {$25000.00} in compensation to reflect the significant opportunity cost, time, and reputational impact these erroneous and bad faith credit entries have caused. 

Supporting Documentation The following attachments substantiate my claims, illustrating the extent of the time, effort, and documentation involved in attempting to resolve these disputes : Dispute Results and Correspondence from Credit Bureaus and Collection Agencies Documents from XXXX, XXXX, XXXX, XXXX XXXX, Jefferson Capital Systems, and XXXX, detailing dispute attempts, limited responses, and failures to correct inaccuracies. 

Communications from XXXX and XXXX XXXX confirming my account status with XXXX  ( closed in good standing in XXXX ) and my completed XXXX cancellation, showing no outstanding balance. 

XXXX XXXX XXXX XXXX Confirmation Proof of my efforts to clear all debts as part of my XXXX XXXX  school application process, demonstrating my commitment to maintaining a positive credit profile. 

Additional Dispute Documentation and Billing Information XXXX chat transcripts, XXXX billing records, and other evidence showing my proactive steps to clarify billing and account status. 

Direct PLUS Loan Application Confirmation and Credit Reporting Dispute Results Documentation related to my credit improvement efforts and verification of debts as part of graduate school applications. 

Detailed Dispute Results and Supporting Emails Additional supporting emails and dispute responses from credit reporting agencies and debt collectors, further illustrating the depth of the issue and the responses received. 

Request for CFPB Intervention The actions of these companies violate the FCRA and reflect clear bad faith reporting practices that have caused severe damage to my financial stability and professional reputation. I ask the CFPB to investigate these claims thoroughly, hold the companies accountable, and ensure that these inaccuracies are removed from my credit file. 

Thank you for your time and attention to this matter. I am available to provide further documentation or clarification as needed. 

Sincerely, XXXX XXXX Attachments : Dispute results and correspondence from XXXX, XXXX, XXXX, XXXX XXXX, Jefferson Capital Systems, and XXXX. 
XXXX and XXXX communications confirming account closure and status. 
XXXX  school loan confirmation, showing debt clearance. 
Additional XXXX