Consumer complaint received 2019-06-18
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: National Credit Systems,Inc. (CA)

Summary : XXXX XXXX ( my former Landlord ) and National Credit Systems ( a collections agency ) are falsely reporting to the credit reporting agencies that I owe a balance of {$10000.00} I have disputed this allegation to XXXX   XXXX, National Credit Systems, and the Law Office of XXXX XXXX XXXX ( a second collections agency hired by XXXX XXXX  ) but my dispute has been ignored. I also disputed this false debt with XXXX who deleted this collections account in its entirety from my XXXX  credit report following an investigation based on the materials I provided to them. XXXX and XXXX have refused to conduct an independent investigation, instead they are relying on the false claims of XXXX XXXX and its agents. 

Full Account : I do not owe any amount to XXXX XXXX, the original creditor on this collections account and my former landlord. By way of background, XXXX XXXX and I entered into a lease agreement with XXXX   XXXX  on XX/XX/XXXX  ( Lease Contract ) for the rental of a two-bedroom apartment in downtown XXXX XXXX, CA. In XXXX XXXX, XXXX XXXX  breached a material provision of the Lease Contract by unilaterally reclaiming one of our expressly contracted-for parking spots during the lease period. We informed XXXX XXXX management, in writing, that its decision was in violation of the terms of the parties Lease Contract, but to no avail. In the face of this wrongful conduct, which under the circumstances had a significant and adverse impact on our rights and personal security, we made the decision to make other housing arrangements. We provided 30-days written notice of our intent to vacate the premises, and we vacated the premises in accordance with our legal obligations on XX/XX/XXXX. We satisfied all of our rent and related financial obligations through the move-out date, as acknowledged by XXXX XXXX in its final move out statement. 

What National Credit Systems/XXXX XXXX refer to in the credit reporting as the balance owed is the remaining amount of a 2 month concession return, such concession being a one-time credit off of the rent, which they claim is recoverable under the terms of the Lease Contract. This claim has never been substantiated and is totally bogus for several reasons. 

First, the return of the concession credit, extended to XXXX XXXX and me as an inducement to enter into the Lease Contract for the two-bedroom unit, is not owed to XXXX   XXXX  because it breached the Lease Contract by unilaterally, and over our objection, taking back one of the two parking spots we expressly negotiated for and then reduced to writing in a written addendum to the Lease Contract. XXXX   XXXX can not void or unduly restrict our bargained-for rights under the Lease Contract by reclaiming a parking spot, and then effectively demand that we stay and pay rent through the entirety of the lease term or leave subject to the threat of claims for damages and penalties, as well as intimidation through the false claims published to third party creditors by means of your credit agency. 

Second, the language of the Lease Contract itself undercuts National Credit Systems/XXXX position that it has any legal right to the return of a past rent concession. Paragraph 31, under the heading Default by Resident states, in pertinent part, If you default and move out early, you will pay us any amounts stated to be rental discounts in paragraph 10, in addition to other sums due. However, we did not default ( as previously explained ) and paragraph 10 of the Lease Contract is totally silent on this particular issue. The Lease Addendum for Rent Concession or Other Rent Discount, attached to the Lease Contract, does not extend to XXXX  any broader rights to recoup the value of the concession credit. 

We have repeatedly notified XXXX XXXX and its agents that we do not owe them any amount and have supplied the bases for such position, but that, to the contrary, they are unlawfully withholding part of our security deposit for the apartment. Besides ignoring our supplied bases and our requests that they return the money they owe us, we have received nothing more than threats to our financial security if their demands are not met. 

National Credit Systems, the collection agency, has ignored my communications and ignored their requirement to provide proof of debt validation under the Federal Debt Collection Practices Act ( FDCPA ). In early XX/XX/XXXX, I received my first letter from National Credit Systems, demanding that I pay the amount of {$10000.00} without any explanation of the amount owed. This amount is greater than the prior itemized amounts provided by XXXX XXXX  and its principal XXXX. I contacted National Credit Systems by phone on XX/XX/XXXX to explain that I do not owe any amount. Following that phone call, I mailed a certified letter to National Credit Systems providing written notification that I dispute the entirety of the alleged amount owed. National Credit XXXX received my letter on XX/XX/XXXX and proceeded to ignore my letter, reported my account to the credit bureaus, and continued sending me additional letters demanding payment, all in violation of their FDCPA requirement to cease collection of the debt until they obtain a verification of the debt or a copy of the judgment ( which does not exist ) and mail me a copy of such verification or judgment.