Consumer complaint received 2024-07-02
Product: Debt collection — Medical debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Phoenix Financial Services LLC ()

I received six demand letters last year dated XX/XX/XXXX for six accounts : XXXX, XXXX, XXXX, XXXX, XXXX, XXXX. I sent a dispute requesting debt validation. Validation was never received, but on XX/XX/XXXX I called to discuss settlement. The representative required me to withdraw the dispute before discussing settlement. I withdrew the dispute then authorized my spouse, XXXX XXXX, to speak to the representative on the accounts. My Wife asked the agent for a settlement amount on all six accounts. After a significant delay, the agent returned and offered {$700.00} to settle all six accounts. I, after confirming the settlement amount would resolve all six accounts, made the requested payment the same day. 

In XXXX, I received an additional letter from Phoenix Financial offering a settlement on account XXXX. My Wife paid the offered settlement amount before realizing the account was included in the six accounts settled with Phoenix the prior XXXX. The payment of {$200.00} paid on XX/XX/XXXX was a duplicate payment that was refunded after a call from my attorney to Phoenix Financial on XX/XX/XXXX, further confirming the settlement. Additional letters were received for XXXX and XXXX in XXXX, which caused me to review the letters from the prior year and discover these were already settled as well. 

Additionally, I received a letter dated XX/XX/XXXX offering to settle this same account ( which was already settled in XX/XX/XXXX ) for {$140.00} if paid by XX/XX/XXXX. Then I received another letter dated XX/XX/XXXX for the same account demanding payment in full. This is overshadowing and violates the FDCPA. This is also harassment and demanding payment on an account previously settled. 

I received a letter dated XX/XX/XXXX and a letter dated XX/XX/XXXX on account XXXX demanding payment in full on this account as well. This is harassment and demanding payment on an account previously settled. 

I received a letter dated XX/XX/XXXX on account XXXX demanding payment in full on this account also previously settled in XX/XX/XXXX. This is harassment and demanding payment on an account previously settled. 

After speaking with an agent on XX/XX/XXXX, I was transferred to a manager, XXXX XXXX, who reviewed the six accounts. She assured my attorney that she was tying the accounts together, closing the remaining three accounts, and sending a request for refund of {$200.00} to the appropriate department. I received the refund. I never received the promised confirmation of closure. However, I have now received a demand letter from another agency on account XXXX. Again, this agency has failed and refused to settle the accounts previously paid as agreed. This will be the very last time I deal with this before a lawsuit is filed without further warning. 

Based on this situation, I would suggest further agent training as this error has resulted in multiple FDCPA violations including : Failing to validate the debt and requiring the consumer to withdraw his request before speaking on the account 15 USC 1692 ( h ) Failing to apply payment as directed by the consumer for multiple debts 15 USC 1692 ( i ) False representation that the accounts would be settled 15 USC 1692 ( i ) False representation of the status of the debts as unpaid 15 USC 1692 ( i ) Collecting of amount no longer due 15 USC 1692 ( g ) Sending a demand for full payment on an account that had an unexpired settlement offer ( XXXX  ) 15 USC 1692 ( g )