Consumer complaint received 2026-02-22 00:00:00
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Southwest Recovery Services, Inc.
State: NC

Complaint narrative:
To Whom It May Concern, I am submitting this formal complaint regarding an improperly reported collection account furnished by Southwest Recovery Services, which is reporting a collection tradeline without providing legally sufficient proof that it has the authority to collect or furnish information for this account.

This conduct violates the Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ) and applicable federal standards governing third-party debt collectors.

Account Information Collection Agency : Southwest Recovery Services Account Number : XXXXXXXX XXXX XXXX XXXX XXXX  Original Creditor : XXXX XXXX Amount Allegedly Owed : {$480.00} Date Opened ( as reported ) : XX/XX/XXXX Date Reported : XX/XX/XXXX Account Status : Collection / Charge-Off Reporting Bureau XXXX XXXX Failure to Provide Proof of Legal Assignment Southwest Recovery Services is reporting this account as a collection obligation without producing any valid proof of assignment or ownership. 

Under federal law, a third-party debt collector must be able to demonstrate a lawful chain of assignment from the original creditor to itself before it may lawfully collect or report a debt.

Legally sufficient proof requires, at minimum : A bill of sale or assignment agreement Documentation that specifically identifies this account as part of the transfer Proof that Southwest Recovery Services has authority to collect and furnish data to consumer reporting agencies A copy of a billing statement, invoice, account summary, or payment ledger from the original creditor is NOT legally sufficient. 
Such documents do not establish ownership or assignment, and any party can create or reproduce them. Courts and regulators require actual assignment contracts, not generic account documents. 

Fair Credit Reporting Act ( FCRA ) Violations By continuing to report this collection account without proof of assignment, Southwest Recovery Services is violating, but not limited to : 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Furnishing information that is inaccurate, incomplete, or materially misleading.

15 U.S.C. 1681s-2 ( b ) Failure to conduct a reasonable investigation and verify legal authority after dispute.

15 U.S.C. 1681e ( b ) Failure to maintain reasonable procedures to assure maximum possible accuracy.

Without proof of lawful assignment, Southwest Recovery Services has no permissible purpose to report this tradeline. 

Demand for Relief I hereby demand that Southwest Recovery Services : Immediately delete this tradeline from all consumer reporting agencies, including XXXX XXXX XXXX XXXX 

Absent production of valid assignment documentation, continued reporting constitutes willful noncompliance with federal law. 

This complaint is being submitted to the Consumer Financial Protection Bureau ( CFPB ) for regulatory review and enforcement. 

Please provide a written response within the CFPB-mandated response timeframe.

Company response to consumer: Closed with explanation