Consumer complaint received 2025-08-29 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: UPGRADE, INC.
State: GA

Complaint narrative:
IN THE MAGISTRATE COURT OF XXXX XXXX XXXX XXXX Defendant XXXX. 

VELOCITY INVESTMENTS, LLC ASSIGNEE OF UPGRADE INC Plaintiff CIVIL ACTION NO. : XXXX DEFENDANT 'S AMENDED ANSWER AND AFFIRMATIVE DEFENSES NOW COMES the Defendant, XXXX XXXX, and files this Amended Answer to the Plaintiff 's Statement of Claim, stating as follows : 1. Defendant denies owing the Plaintiff, XXXX XXXX, XXXX, any amount. 

AFFIRMATIVE DEFENSE 2. The alleged debt referenced in the Plaintiff 's Statement of Claim pertains to an account originally with Upgrade Inc .

3. Upon review of my credit reports from XXXX XXXX XXXX XXXX, it is evident that the XXXX XXXX account associated with this alleged debt has been reported as XXXX XXXX '' Charged Off. XXXX XXXX XXXX  TransUnion Credit Report ( Date Created : XX/XX/XXXX, File Number : XXXX ) : Under " UPGRADE INC '' ( Account Number : XXXX ), the " Pay Status '' is explicitly listed as " >Sold ; was Charged-off< '' and the remarks include " UNPAID BALANCE CHARGED OFF. '' ( Page XXXX ) The " Date Closed '' is recorded as " XX/XX/XXXX. '' ( Page XXXX ) XXXX  Credit Report ( Date Generated : XX/XX/XXXX, Report Number : XXXX ) : * * Under " UPGRADE INC '' ( Account Number : XXXX ), the " Status '' is stated as " Closed. {$4400.00} written off. '' ( Page XXXX ) The " Payment history guide '' notes " XXXX XXXX as of XX/XX/XXXX, XX/XX/XXXX. '' ( Page XXXX ) XXXX  Credit Report ( Date : XX/XX/XXXX, Confirmation # XXXX ) : Under " UPGRADE INC - Closed '' ( Account Number : * XXXX ), the " Status '' is " Charge Off. '' ( Page XXXX ) The " Date Major Delinquency XXXX Reported '' is " XX/XX/XXXX '' and the " Activity Designator '' is " Transfer/Sold. '' ( Page XXXX ) The " XXXX XXXX XXXX '' is listed as " {$0.00}, '' which is typical after a charge-off, indicating the original creditor no longer considers it an asset. ( Page XXXX ) XXXX. A " charge-off '' status indicates that the original creditor ( XXXX XXXX XXXX has determined the debt to be uncollectible and has written it off as a loss. Once an account is charged off and subsequently sold to a third-party debt collector or assignee ( such as XXXX XXXX XXXX XXXX ), the original creditor has generally extinguished the debt from their books. While a charge-off does not automatically eliminate all liability, the transfer/sale of the debt fundamentally changes the nature of the collection efforts and the Defendant 's relationship with the new entity. 

XXXX. Furthermore, the XXXX  report explicitly shows the " Activity Designator '' for the Upgrade Inc. account as " Transfer/Sold '' ( Page 15 ), and the TransUnion report states " PURCHASED BY ANOTHER LENDER ; UNPAID BALANCE CHARGED OFF '' ( Page 15 ), indicating the account was sold after being charged off. This reinforces that the original creditor no longer holds the debt and that the Plaintiff, as an assignee, must prove legitimate ownership and the validity of the debt. 

6. Therefore, as the account has been charged off and transferred/sold, the Defendant asserts that they are no longer legally liable for this debt to XXXX XXXX XXXX XXXX, given the circumstances of the charge-off and subsequent assignment. The Plaintiff bears the burden of proving the validity and enforceability of this debt. 

LEGAL PROTECTIONS AGAINST IMPROPER DEBT COLLECTION 7. As a third-party debt collector or assignee, XXXX XXXX XXXX  XXXX, is subject to the provisions of the Fair Debt Collection Practices Act ( FDCPA ) XXXX XXXX ( 15 U.S.C. 1692 et seq. ), a federal law designed to eliminate abusive debt collection practices. This includes prohibitions against harassment, abuse, false or misleading representations, and unfair practices. 

8. In Georgia, consumers are further protected by the Georgia Fair Business Practices Act ( GFBPA ) XXXX XXXX ( O.C.G.A. 10-1-393 et seq. ), which prohibits deceptive and unfair acts or practices in the conduct of consumer transactions, including debt collection. 

9. Specifically, under the FDCPA and the GFBPA, debt collectors are prohibited from : Using or threatening violence or criminal means to harm the consumer, their reputation, or property. 
Using obscene or profane language. 
Calling repeatedly or continuously with the intent to annoy or harass. 
Calling before XXXX XXXX. or after XXXX XXXX. local time, unless permission is given. 
Discussing the debt with third parties, except for the limited purpose of obtaining location information ( without disclosing it is a debt ). 
Misrepresenting the amount, character, or legal status of the debt. 
Threatening legal action that is illegal or not intended to be taken. 
Contacting the consumer after a written request to cease communication has been sent, except to advise that collection efforts are being terminated or that specific legal action will be taken. 

XXXX. Penalties for Violations : Should XXXX XXXX, XXXX, or its agents engage in any of the prohibited practices outlined above, the Defendant reserves the right to pursue legal action. Under the FDCPA, a consumer may recover actual damages, statutory damages of up to {$1000.00} per violation, and attorney 's fees and court costs. Additionally, complaints may be filed with the Georgia Attorney General 's Consumer Protection Division, the Federal Trade Commission ( FTC ), and the Consumer Financial Protection Bureau ( CFPB ). 

WHEREFORE, Defendant prays that : a ) The Plaintiff 's claim be dismissed with prejudice.

b ) Judgment be entered in favor of the Defendant. 
c ) Defendant be awarded such other and further relief as the Court deems just and proper. 

Respectfully submitted, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, GA XXXX ( XXXX ) XXXX - XXXX XXXX XXXX

Company response to consumer: Closed with explanation