Consumer complaint received 2021-02-06
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: FREEDOM FINANCIAL NETWORK (PA)

XX/XX/XXXX enrolled in Freedom Debt Relief program. XX/XX/XXXX program began. 

XXXX ACCOUNT # XXXX ( XXXX ) In XXXX XXXX I approved a settlement for XXXX # XXXX for {$5200.00} ( Balance was {$10000.00} ) however the funds were paid to XXXX XXXX XXXX not XXXX XXXX XXXX who was handling the collection the balance they reflect is {$11000.00}. 

XX/XX/XXXX I spoke to XXXX to inquire why my XXXX account was showing up in my FDR account status as Upcoming-Account not Ready whereas this account was settled on XX/XX/XXXX. 
XXXX escalated the discrepancy but suggested I obtain a paid in full letter from XXXX XXXX XXXX. I attempted to reach out to XXXX continuously the line was always a continue busy signal and FDR could not provide any other number nor could I find one. 

XXXX XXXX I was notified via mail from Freedom Debt the {$5200.00} was deposited back to my FDR dedicated account due to a Data Breech caused by a FDR employee and a third party. 

XX/XX/XXXX I applied to refinance my XXXX XXXX, NJ XXXX XXXX only to find out the XXXX Account was reflected on my credit report as charge off with a balance of {$11000.00} this caused me to not be able to move forward with the refinance until I am able to have the charge off reflect {$0.00}. 

XX/XX/XXXX I reached out to FDR XXXX XXXX assisted me to again escalate the XXXX account it was turned over to XXXX XXXX XXXX to resolve on my behalf. 

XX/XX/XXXX my husband and I were required to e-sign a POA for XXXX XXXX XXXX to act on our behalf to address the XXXX open account issue. I was contacted by XXXX of FDR who advised me that XXXX XXXX XXXX advised FREEDOM DEBT that XXXX was no longer collecting on the account as it was too old and it was charged of XX/XX/XXXX which is 14 months after the date I approved the settlement on XXXX # XXXX which was paid to XXXX  fraudulently. My concern was does the XXXX account now come off my credit report and I was advised I should wait a few months 90 days for it to come off the report and if not call XXXX directly. 

I checked my credit report on XX/XX/XXXX only to find out XXXX Acct XXXX was still reflected as charge off with the balance of {$11000.00}. When I contacted XXXX XXXX I was advised the account was too old to collect on it was charged off XX/XX/XXXX and just because it was charged off doesnt mean they will report it as a XXXX balance unless its paid. I explained as far as I knew in XX/XX/XXXX it was settled and explained the entire fraud issue. All she could advise was if I wanted a XXXX  balance to be reflected I had to pay it. Two addresses to send payment XXXX XXXX XXXX XXXX XXXX XXXX, Az XXXX Attn : Payment Dept. Or over night XXXX XXXX  XXXX XXXX XXXX, XXXX. XXXX, XXXX XXXX, XXXX, KY XXXX Reference my name ; last 4 of SS # and Acct # XXXX. She advised there could be no negotiation for a lower amount it exceeded the statue of limitation and even if I did not have FDR remove this account from my program they would not be able to negotiate because it exceeded the Statue of Limitation. 

So because this account was part of a data breech this caused the XXXX Account to no longer be able to be negotiated and FDR never acted further on the account to resolve it even though it was part of the data breech all they did was deposit the amount of the funds they paid out to XXXX back into my FRD dedicated account.