Consumer complaint received 2024-09-15
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CBC Companies, Inc. (NY)

Dear CFPB, I am submitting a formal complaint against XXXX for willfully violating 15 U.S. Code 1681i - Compliance procedures by failing to conduct a reasonable investigation and 15 U.S. Code 1681e ( b ) - Accuracy of report for failing to assure maximum possible accuracy.

I believe the evidence provided substantiates that not only was XXXX in violation of 15 U.S. Code 168o ( a ) ( 1 ) - ( 2 ) for being negligent and non-compliant in their handling this claim, but also violated 15 U.S. Code 1681n ( a ), as they clearly demonstrated willful recklessness throughout the process. This is my final attempt to request that XXXX resolve this matter, or I have no choice but to exercise my private right of action in Federal Court.

Overview : I mailed XXXX a dispute letter via certified mail on XX/XX/XXXX, and provided 60 pages of evidence, including receipts and official documentation, asking them to investigate inaccurate information reporting on my credit file regarding an erroneous debt of {$4700.00} furnished by DFAS. ( see Exhibit I : XXXX Certified Mail Dispute XXXX ) My letter explained that not only was this debt a mistake on the part of DFAS ( with irrefutable evidence to back it up ), but in addition, I pointed out multiple other errors associated with this account which were reporting inaccurately ( causing adverse action ), and asked XXXX to investigate the errors and to correct the inaccuracies or delete the account. 

As youll find in Exhibit I, I provided XXXX a detailed overview of why the account is inaccurate and started by explaining that I had already contacted DFAS directly regarding the account back in XX/XX/XXXX, and they still hadnt responded to my dispute, so I was asking for XXXX to please investigate the matter directly.

I also explained that I had never received any letters or notices from DFAS regarding this debt. Instead, I discovered it while reviewing my credit report. To this day, DFAS has still not sent me any letters or correspondence regarding the reason for this alleged debt. I explained that I discovered the debt while randomly reviewing my credit report and saw that it was reporting. I explained that after reaching out to multiple departments within DFAS, I finally spoke with a representative named XXXX XXXX on XX/XX/XXXX, who said her ID Number was 24. She was able to pull up the alleged debt and said it was regarding an overpayment due to the weight of a military household goods move from XXXX XXXX XXXX, in XX/XX/XXXX and that DFAS sent the notice of indebtedness letter to that invalid address in XXXX XXXX XXXX. 

I explained to XXXX that this was clearly a mistake by DFAS because I was NOT in the military in XXXX, nor did I live in XXXX  or have any association with that address in XXXX. I explained that XXXX is a one-party consent state and that I recorded the entire call with DFAS. During this call, I had the DFAS representative, XXXX XXXX, admit that the call was being recorded on her end as well ; however, when I told her the conversation was also being recorded on my end, she put me on hold and then abruptly hung up. ( See Exhibit II : DFAS Recorded Call Transcript XXXX ). I then pointed out specific evidence to XXXX, which I included within the 60 pages of attachments, and explained there is no possible way this alleged debt could be accurate for the following reasons : 1. The XXXX and military separation documents I included, validate that I was medically separated from the military in XX/XX/XXXX, NOT in XX/XX/XXXX, and I was located in XXXXXXXX XXXX, NOT in XXXX XXXX XXXX XXXX. 

2. I also included all the documents from the military pertaining to my household goods move from when I separated in XX/XX/XXXX ( to include all the receipts from that move that were returned by mail ), clearly indicating that I relocated from XXXX XXXX to my home of record address in XXXXXXXX XXXX. Additionally, I pointed out that block 19a of my XXXX specifically lists my post-separation mailing address ( Mailing Address After Separation ) as the Home of Record Address in XXXXXXXX XXXX, and Block 19b ( Nearest Relative ) has the same address.

After pointing out this evidence, I asked XXXX how it would be possible for me to owe money for an alleged military households good move that took place two years and seven months after I had already separated from the military, from an address in a state where, according to their own records, they I knew didnt live? I also asked them, why would DFAS mail the notice to an address that I am not associated with, in a state they know I dont live in, when according to their own records, they have my mailing address documented as the Home of Record Address in XXXXXXXX XXXX XXXX ? Not only does this clearly indicate that the debt DFAS is alleging I owe not valid, but its downright not even possible. Therefor I asked XXXX to please delete the account. 

Although this shouldve been more than enough to substantiate my dispute, I proceeded with pointing out several additional errors regarding this account, asking XXXX to investigate and correct the following incomplete or inaccurate information : If this was for an alleged charge in XX/XX/XXXX, then why does the Date Opened, say XX/XX/XXXX, and states the estimated month and year this item will be removed is XXXX/XXXX, without accurately reflecting the original date of the alleged overpayment, which DFAS claims is XX/XX/XXXX? Wouldnt this be considered illegally re-aging the debt by improperly making it appear more recent? 
How is the Account Type listed as an Open Account with a Date Closed of XX/XX/XXXX? An Open Account can not have a Date Closed. 
How is the High Balance only {$4600.00} when the Balance is {$4700.00}? Shouldnt the High Balance be more?

How is the Past Due amount {$4700.00} more than the High Balance {$4600.00}?

Why isnt anything listed in the payment history data on the bottom except for an X indicating Unknown according to your rating key for XXXX and XX/XX/XXXX? 

I did my due diligence and spent a lot of time and effort to ensure I provided XXXX with all the evidence they could possibly need to conduct a reasonable investigation. I took the time to ensure everything was organized and presented so that any layperson investigating could look at the evidence and quickly determine this account was not only full of errors but that the debt itself was not valid and needed to be deleted. I then spent over {$40.00} on a mailing service to ensure XXXX properly received all 60 pages in a neat and organized manner via certified mail. 

Response From XXXX : I received a letter in the mail from XXXX dated XX/XX/XXXX. The letter stated the following : We investigated the information you disputed and the disputed information was verified as accurate ; however, we updated ; Date Closed ; Rating. ( See Exhibit III. XXXX Dispute Results for DFAS XXXX. I believe it's important to mention that courts have ruled that Credit Reporting Agencies are required to do more than merely make a cursory investigation to verify disputed information and relying solely on automatic dispute systems, such as the XXXX, to verify an account is accurate, while ignoring evidence provided by the consumer is considered willful. 

It is evident that XXXX merely parroted the information that DFAS provided and ignored all my evidence with reckless disregard, so I decided to call the XXXX number they provided in the letter. I recorded the phone call, including XXXX XXXX permission, stating, " All calls may be recorded. '' I also had that recording transcribed and attached it here for your review. ( See Exhibit IV. XXXX Recording Transcript XXXX ). After waiting on hold for 35 minutes, I was finally transferred to a dispute department representative. I explained why I was calling and questioned her on how XXXX reasonably determined that this account was verified as accurate when I provided an abundance of evidence that clearly proved otherwise. After explaining the circumstances, the XXXX representative even agreed on the recorded line that the account should be DELETED, please refer to Exhibit IV, starting at time stamp XXXX to XXXX. She stated that she would delete the account if she could, but shes only able to delete certain types of information, such as inquiries. I asked if she could resubmit the dispute, and she said I needed to call XXXX instead. She said that was the direct line to XXXX XXXX XXXX XXXX and assured me that if I called that number, they could delete the account for me directly. I even asked if she could transfer me instead, and she replied by saying You need to contact them directly because even if I were to transfer, you hold for a long time. So, it's better way call directly. Which you can see in Exhibit IV, XXXX XXXX. 

After spending nearly an hour on the phone, I called the XXXX number the XXXX representative had given me to contact the XXXX XXXX XXXX and discovered it was a non-working number. So, after calling the number that XXXX specifically provided on my dispute results and wasting an hour on the call, the representative not only stated that she was unable to resubmit the dispute request but also deliberately provided a fake number and stated she was unable to transfer me, and I have the whole thing recorded. I dont know how much more willful it gets than that. 

15 U.S. Code 1681c ( h ) Notice of discrepancy in address Another interesting fact regarding this account is that the address where DFAS allegedly mailed the notice of this erroneous debt was a very old, inaccurate XXXX XXXX, XXXX address that I had already disputed and deleted from my XXXX, XXXX, and XXXX credit files long before this account was ever reported. Youll see that Innovis, who happens to be another Credit Reporting Agency that furnishes information to the larger CRAs ( such as XXXX ), sent me a random letter dated XX/XX/XXXX, stating they updated that same inaccurate XXXX XXXXXXXX XXXX address on my credit file, even though I had an active security freeze on my Innovis file, which they acknowledged in that same letter. ( See Exhibit V. Innovis Certified Mail Dispute XXXX ) It's also worth pointing out that I submitted the same dispute to XXXX, and they DELETED the account right away. ( See Enclosure VI. XXXX  DFAS Account Removed ). How is it possible that when XXXX conducted a reasonable investigation, they determined the account was inaccurate? However, XXXX claims to have reinvestigated the same account and " verified it was accurate ''. Shouldn't they follow the same industry standard when investigating disputes for incomplete or inaccurate information? 

According to my most recent XXXX Credit File ( File Number XXXX ), pulled on XX/XX/XXXX, these inaccuracies are still reporting ( See Exhibit VII. XXXX XXXX DFAS Reporting XXXX ). As you can see, XXXX is still reporting a date open of XX/XX/XXXX and states the estimated month and year this item will be removed is XXXX/XXXX. This clearly indicates that the account has been re-aged, and despite all the evidence Ive provided, XXXX is illegally reporting this account as new. The Account Type is still reporting as an Open Account ; however, it also lists a Date Closed of XX/XX/XXXX. How does an Open Account have a Date Closed? Also, the Balance and the Past Due both report {$4700.00}, which is higher than the High Balance, which reports {$4600.00}. As mentioned in my original dispute, how can the balance or the past due be higher than the high balance?

Summary : In summary, XXXX blatantly failed to conduct a reasonable reinvestigation, then displayed gross misconduct and willful negligence by refusing to resubmit my dispute via phone and deliberately providing me with a fake number, knowing I spent nearly an hour on the phone already. The evidence is clear and unmistakable, and I firmly believe that XXXX put itself in a bad situation by displaying this unethical behavior. 

If XXXX is going to report information on me, its their responsibility to ensure the data is being reported with maximum possible accuracy. Had XXXX taken a few minutes to read my certified letter and review the overwhelming evidence I provided, they wouldve immediately seen that it would be virtually impossible for me to owe this debt, and even if I did ( which I do not ), they are illegally reporting inaccurate details and dates, making it appear as a new debt, when in fact even if it were legitimate ( which it is not ), it would be from XX/XX/XXXX, not XX/XX/XXXX. I have made every possible effort to resolve this amicably, yet XXXX chose to willfully violate their congressionally mandated duties. 

My final request is for XXXX to do the right thing : conduct a reasonable investigation, weigh the evidence I provided, and either correct the inaccuracies or delete the account. Also please provide me with a copy of my Full & Complete File Disclosure. As much as I would love for XXXX to do the right thing here, it would be naive to think that they will. If this doesnt resolve the issue, I fully intend to exercise my private right of action in Federal Court .

Violations : 1. Inaccurate Reporting ( 15 U.S.C. 1681e ( b ) ) 2. Failure to Correct Errors ( 15 U.S.C. 1681i ) 3. Failure to Conduct Proper Reinvestigation ( 15 U.S.C. 1681i ) 4. Re-aging the Debt ( 15 U.S.C. 1681c ) 5. Notice of Discrepancy in Address ( 15 U.S.C. 1681c ( h ) ) 6. Civil Liability for Negligent Noncompliance ( 15 U.S. Code 168o ( a ) ( 1 ) - ( 2 ) ) 7. Civil Liability for Willful Noncompliance ( 15 U.S. Code 168n ) Exhibits : Exhibit I. XXXX Certified Mail Dispute XXXX Exhibit II. DFAS Recorded Call Transcript XXXX Exhibit III. XXXX Dispute Results for DFAS XXXX Exhibit IV. XXXX Recording Transcript XXXX Exhibit V. Innovis Certified Mail Dispute XXXX Exhibit VI. XXXX DFAS Account Removed