Consumer complaint received 2024-02-10
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Credit Fresh Holdings Inc (TX)

This complaint is due to violations of FCRA, Texas State laws, Federal laws, and other Truth in lending Regulations. Credit Fresh has engaged in predatory lending which in turn subjected me to unfair and abusive practices. I originally obtained the first line of credit on XX/XX/XXXX. I have always been in good standing, never late. Afterward, a credit line increase occurred automatically with undisclosed terms in {$500.00} for the total amount of {$3000.00}. 
I have always made the payments requested. Lately, I have made additional payments, but the amount owed is hardly impacted. The lack of balance moving is due to excessively high interest which was undisclosed. 
I am a single parent with a limited income due to an injury sustained during Military duty. Due to the fact my balance wasnt declining I placed my loan into a debt consolidation program through XXXX XXXX XXXX XXXX. The ultimate objective of debt consolidation is to lower interest rates on accounts to pay the account off quicker. XXXX sent Credit Fresh a proposal. Upon Credit Fresh 's decision to accept the XXXX agreement, Credit Fresh reported my loan in default. I reached out to Credit Fresh and was told that if I dont immediately pay off the loan, it will be sent to collection. My credit scores were in the XXXX before any adverse reporting. 
This inaccurate misrepresentation of my account has dropped my credit score by over XXXX points. This action violates 15 USC 1681 and 15 USC1681s2 Responsibilities of furnishers of information to consumer reporting agencies. My account with Credit Fresh has always been paid on time. The last payment covered a future payment not due. The account is reported now as charged off and in collections in the amount of {$3200.00}. A charge-off requires 90 days late status. According to the XXXX XXXX XXXX, a creditor usually charges off an account after a consumer misses six consecutive payments. I never missed one payment. Also, Credit Fresh has deleted all payment history of my report, see attachment of my payment history which shows this account has never been late from XX/XX/XXXX until present. 
Now that the account is falsely reflecting a charge-off and is listed in collections prematurely Credit Fresh illegal collection practice is violating FDCPA. Further, 15 USC 1692f prohibits the use of unfair practices for the collection of debt. A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. 
I was in the process of purchasing a home and obtaining business-related funding. Now my scores have been affected by illegally falsely reporting my account status as in default. Credit Fresh has threatened to place this account in collection status if I dont pay it off immediately. I also denied business funding after my credit report was re-pulled by the lender. The denial was due to this account reporting inaccurately. 
The Fair Credit Reporting Act protects me against this type of misrepresentation and conduct by any creditor that violates FCRA. The inaccurate reporting has resulted in defamation of credit in direct violation of 15USC 1682 ( e ) ( 8 ) Communicating or threatening to communicate to any person credit information which is known, or which should be known to be false.

I talked to a lady from Credit Fresh on XX/XX/XXXX, regarding the misrepresentation of the status of my credit report. She stated, Even though you have never missed a payment, for us to accept the proposal from XXXX XXXX XXXX XXXX, we must put your account in default. If the account is not paid promptly, we will report it to collections. She even investigated my account and verified that it was never late. 
I was diagnosed with XXXX in XXXX and this has exacerbated my XXXX as I have worked so hard to ensure a good credit rating for my son and I despite having XXXX. This has caused mental anguish. I have had sleepless nights off of this. 
This company has intentionally violated a plethora of United States Code and has chosen not to operate ethically nor within the laws. Their actions were intended to hurt my ability to obtain credit elsewhere. The laws of Texas prohibit Credit Fresh from subjecting any consumer to such practice under BUSINESS AND XXXX XXXX XXXX XXXX. DECEPTIVE TRADE PRACTICES. The FCRA prohibits this conduct. Please protect my consumer rights. Please ensure Credit Fresh abides by all state, federal, FCRA, and Truth in Lending laws applying to consumer transactions. I am a 100 % Total and XXXX XXXX XXXX Veteran who has served my country to protect our citizens and the freedom we all enjoy. This is my good faith attempt to stave further legal actions against Credit Fresh which will result in a judgment in my favor of pursued. I immediately request that my credit reports be updated to on-time status IMMEDIATELY upon receipt of this formal complaint by Credit Fresh. Due to the clear violation of the FCRA and other laws, I request a debt waiver of the full amount. This debt waived is less than the amount I could be awarded in a court action if pursued due to egregious violations of the United States Code by Credit Fresh.

Attached is a copy of my payment history with Credit Fresh and proof my account was never late. Attached is a copy of the falsely reported charge-off status and collection remarks on my credit report. I pray CFPB to protect my consumer rights as I protected our country and freedoms through my honorable service in the US Army.

CC : Attorney General of Texas CC : XXXX XXXX XXXX CC : Federal Trade Commission