Consumer complaint received 2025-04-15 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CLGF Holdco 1, LLC
State: MI

Complaint narrative:
I am filing this complaint against FEB DestinyXXXX XXXX XXXX XXXX ) due to ongoing, unresolved credit reporting inaccuracies, predatory billing practices, and failure to honor the terms of the credit protection program I was enrolled in. Despite submitting multiple disputes since XX/XX/XXXX, the company continues to report false, derogatory, and inconsistent data across all three major credit bureaus. 

I opened this account in good faith to rebuild my credit. Instead, FEB DestinyXXXX has used this account as a mechanism for profit through fee-stacking, overlimit exploitation, and denial of protection services. Their practices have : Damaged my credit score, affecting my ability to qualify for loans, lower insurance rates, or even rent housing. 
Created financial and emotional stress, as every effort Ive made to correct or pay has been punished with additional penalties. 
Undermined the intended purpose of credit protectionturning it into a fraudulent billing item. 

Detailed Issues and Violations : XXXX. Inaccurate and Conflicting Credit Reporting ( FCRA Violations ) Payment history and delinquency timelines reported across XXXX XXXX XXXX XXXX are contradictory. 
Payments made ( including a {$140.00} payment on XX/XX/XXXX, and a {$95.00} payment on XX/XX/XXXX ) were not accurately reflected. 
Delinquency status ( e.g., XXXX days late ) reported for XX/XX/XXXX despite partial payment, while XX/XX/XXXX is marked OK despite missed payment. 

XXXX. Stacking of Abusive Fees in a Single Billing Cycle ( UDAAP Violation ) In the XX/XX/XXXX billing cycle, I was charged : {$41.00} Late Fee {$26.00} Interest {$14.00} Credit Protection Fee {$19.00} Monthly Fee {$49.00} Annual Fee ( billed XX/XX/XXXX ) These fees totaled over {$150.00} in a single month, effectively trapping me in over-limit status ( {$990.00} balance on a {$700.00} credit line ) and obstructing my ability to pay down the account. 

XXXX Credit Protection Program Abuse and Deception ( TILA & UDAAP Violations ) I was actively billed for Credit Protection , but the plan was never honored during periods of financial hardship. 
No claim process or terms were ever provided to activate protection. 
When I inquired, I was told protection does not apply when the account is late or if I didnt notify them in advance. These exclusions were never disclosedmaking the product deceptive by design. 

Charging consumers monthly for a protection program that is void when most needed is a predatory practice and directly violates TILAs disclosure standards and UDAAP laws. 

Clarifying Statement on Hardship Notification Defense : I want to be clear : I was never toldverbally or in writingthat I needed to notify the company in advance of any financial hardship in order for my credit protection benefits to apply. No documentation, no agreement, no customer service representative ever disclosed that requirement to me. 

If the creditor attempts to claim that my protection benefits were denied due to a lack of advance notice, I assert this is an unfair and abusive excuse. A program advertised as Credit Protection should protect customers when hardship occursnot penalize them for not predicting it. If advance notice was required, it was never disclosed to me, and I would never have knowingly paid for a protection plan that was unusable during times of actual need. 

XXXX. Unresolved Disputes and Retaliatory Reporting Despite my ongoing disputes since XX/XX/XXXX, the creditor continued to apply derogatory marks, late payments, and past due flags without investigating or correcting the reporting. 
The account was marked dispute resolved by data furnisher, but no investigation outcome or validation was providedjust continued inaccurate data. 

Detailed Evidence Supporting My Dispute : XXXX. Payment Reporting Inaccuracy Example : A {$95.00} payment was made on XX/XX/XXXX, yet the account is still reported as XXXX days late across XXXX XXXX XXXX 
Evidence : Transaction history ; XX/XX/XXXX billing statement ; account screenshots. 
XXXX. Contradictory Delinquency Ratings Across Bureaus Example : XX/XX/XXXX shows no payment was made, but it is marked OK in XXXX XXXX XXXX, creating a conflict with XXXX delinquency claim. 
Evidence : Payment history grid ; XXXX XXXX XXXX XXXX reports. 
XXXX. Stacking of Abusive Fees Example : In XX/XX/XXXX, I was charged the following within a single cycle : {$41.00} Late Fee {$26.00} Interest {$14.00} Credit Protection Fee {$19.00} Monthly Fee {$49.00} Annual Fee ( charged XX/XX/XXXX ) Evidence : XX/XX/XXXX billing statement ( all charges itemized ). 
XXXX. Failure to Apply Credit Protection Benefits Example : Although I was enrolled in and paying for Credit Protection, no benefits were ever appliedno fee waivers, no deferments, and no hardship relief.

Evidence : Credit Protection billing charges ; lack of any disclosure agreement or claim process. 
XXXX. Over-Limit Balance Misuse Example : My balance reached {$990.00} on a {$700.00} limit ( 142 % utilization ), with no breakdown of over-limit fees or justification. 
Evidence : XX/XX/XXXX statement showing balance and limit ; absence of itemized over-limit fees. 
XXXX. Failure to Correct Disputed Data Example : I submitted disputes starting in XX/XX/XXXX, yet each bureau continues to report unresolved and inaccurate derogatory marks. 
Evidence : notations in bureau reports labeled dispute resolved by data furnisher with no correction made. 
XXXX. Predatory Billing Patterns Example : Despite making a {$140.00} payment in XXXX and {$95.00} in XXXX, my past due amount continued to grow due to fee stacking, interest, and improper application of payments. 
Evidence : Payment history log ; billing statements from XXXX through XX/XX/XXXX. 
XXXX. Lack of Disclosure on Hardship Requirements Example : At no point was I told, verbally or in writing, that I needed to notify the creditor in advance to use the Credit Protection plan I was being charged for. 
Evidence : Absence of terms and conditions ; no email, letter, or portal communication indicating this policy. 
XXXX. Violations of Federal Law Statutes Violated : FCRA 607 ( b ) : Inaccurate and inconsistent bureau reporting FCRA 623 ( a ) ( 1 ) : Furnishing of false information FCRA 611 : Failure to correct disputed data FDCPA 807 : Misrepresentation of debt status TILA ( Reg Z ) : Failure to disclose billing practices and protection terms UDAAP ( Dodd-Frank ) : Predatory, deceptive, and abusive fee structures In support of this dispute, I am providing specific, documented evidence of widespread inaccuracies and abusive practices by FEB DestinyXXXX. Despite a {$95.00} payment made on XX/XX/XXXX, the account was still reported as 30 days late, and no payment was acknowledged for XXXX XXXX though that month was marked OK across some credit bureaus. In XXXX alone, I was charged more than {$150.00} in feesincluding a late fee, interest, credit protection charges, a monthly maintenance fee, and an annual feedespite already being enrolled in a Credit Protection program that was never activated or honored. My balance was allowed to climb to {$990.00} on a {$700.00} credit limit, and no over-limit fees were disclosed or broken down. Disputes I submitted as early as XX/XX/XXXX were marked resolved without corrections or investigation. Payments made in good faith in XXXX and XXXX were ignored in past due calculations, worsening the derogatory reporting. Most alarmingly, I was never toldverbally or in writingthat I needed to notify the creditor in advance of hardship in order for Credit Protection to apply. If such a condition exists, it was never disclosed. These patterns of behavior violate multiple provisions of federal law, including FCRA 607 ( b ), 623 ( a ) ( 1 ), and 611 ; FDCPA 807 ; TILA disclosure standards ; and UDAAP protections. The cumulative effect of these actions has caused long-term credit damage, financial hardship, and emotional distress, and I am demanding immediate correction, removal of inaccurate reporting, a full balance recalculation, and appropriate compensation. 

Requested Resolution : I respectfully request the Consumer Financial Protection Bureau to take immediate regulatory action against FEB DestinyXXXX XXXX and compel them to : XXXX. Recalculate my balance from the date I enrolled in Credit Protection, reversing all improperly assessed fees and interest. 
XXXX. Correct or remove all inaccurate, derogatory information across Experian, Equifax, and TransUnion. 
XXXX. Issue a full reinvestigation and audit, including disclosure of the terms and eligibility conditions for Credit Protection. 
XXXX. Provide compensation for the credit harm and financial distress caused by their actions. 
XXXX. Cease deceptive billing practices that take advantage of consumers attempting to rebuild credit.

Company response to consumer: Closed with explanation