Consumer complaint received 2024-10-12 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CREDIT ACCEPTANCE CORPORATION
State: VI

Complaint narrative:
Cfpb : please see letter sent to Credit Acceptance Dear Credit Acceptance Corporation, This letter serves as your final notice regarding the fraudulent account reported under account number XXXX. I have already filed a formal complaint with the Consumer Financial Protection Bureau ( CFPB ), which details your ongoing violations of federal law. This is your last opportunity to rectify the situation before I pursue additional legal actions. 

The account in question is fraudulent, and you have provided no valid documentation to prove otherwise. Despite filing an identity theft report with the Federal Trade Commission ( FTC ) and disputing this debt, you continue to report the account and subject me to unlawful collection activities. This behavior is not only illegal but also highly damaging to my credit and personal financial standing. 
The FTC report is attached. 


Legal Violations and Consequences : 1. Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681c-2 ( a ) ( Section 605B ) Under Section 605B of the FCRA, you are legally required to block and remove any fraudulent information from my credit report within four business days upon receiving proof of identity theft, which you have. By continuing to report this account, you are in violation of this statute. Failure to comply immediately will further expose you to statutory penalties under the FCRA, which can include fines up to {$XXXX} per violation. 
2. FCRA 15 U.S.C. 1681s-2 ( b ) This section prohibits you from verifying or continuing to report information to any credit reporting agency while the account is under dispute. Your failure to comply with this law by continuing to report this account to consumer reporting agencies like XXXX, XXXX, and XXXX is another violation that could result in substantial legal consequences.

3. Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692g ( b ) Although you are a creditor, the FDCPA requires that upon a dispute, you provide full and sufficient validation of the debt. You have failed to do so, and your continued collection attempts without proper validation are unlawful. You are hereby demanded to cease all collection efforts, including reporting the debt to the credit bureaus, as your actions violate federal consumer protection laws.

4. Truth in Lending Act ( TILA ) 15 U.S.C. 1601 et seq.

Under TILA, creditors are required to provide clear, written disclosures of all terms and conditions of any credit agreement. As I have never been involved in any such agreement with you, nor received any documentation, your actions constitute a violation of TILA. Continuing to report a fraudulent debt without these legally required disclosures makes you liable for additional penalties under this statute.

5. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) 12 U.S.C. 5531 Your attempts to collect on a fraudulent debt and your failure to provide proper documentation qualify as unfair and deceptive under the UDAAP statutes. The Dodd-Frank Wall Street Reform and Consumer Protection Act protects consumers from abusive acts like this, and your ongoing actions will be reported to the relevant authorities for UDAAP violations, which could result in significant penalties, including fines and restrictions on your business practices.

6. Identity Theft and Assumption Deterrence Act ( ITADA ) 18 U.S.C. 1028 You are hereby reminded that I have filed a formal identity theft report with the FTC, and your continued failure to investigate and remove this fraudulent account could be seen as a violation of the Identity Theft and Assumption Deterrence Act. This statute outlines criminal penalties for businesses that refuse to take appropriate action after being notified of identity theft. This is not just a civil matter ; it is potentially criminal.

7. Electronic Fund Transfer Act ( EFTA ) 15 U.S.C. 1693 If there have been any unauthorized transfers or withdrawals linked to this fraudulent account, your actions also violate the EFTA, which protects consumers from unauthorized electronic transactions. You may be held liable for any unauthorized transactions and will be reported to both state and federal authorities for violations of the EFTA.

8. Violations of State Laws In addition to federal violations, your actions also violate state consumer protection laws, which provide further protections against fraudulent debt reporting, unfair debt collection practices, and identity theft. I reserve the right to pursue legal action under the applicable laws in my state of residence.

Immediate Actions Required : 1. Immediate Removal of the Fraudulent Account : You are legally obligated to remove this fraudulent account from all credit reporting agencies immediately. Failure to remove this account will be reported to the CFPB, the FTC, and the relevant state authorities. Every day you fail to comply increases your liability and exposes you to further legal consequences.

2. Cease All Collection and Reporting Activities : You are prohibited from verifying, reporting, or continuing any collection activities related to this account. If I receive any further communication or verification from Credit Acceptance Corporation or the credit bureaus regarding this fraudulent account, I will pursue immediate legal action.

3. Written Confirmation of Compliance : You are required to provide written confirmation within 7 days that this fraudulent account has been permanently removed from my credit reports with all three major credit bureaus ( XXXX, XXXX, XXXX ) and that all collection activities have ceased. 

Consequences for Non-Compliance : If you fail to comply with these demands within 7 days, I will take the following aggressive actions : Pursue Litigation : I will initiate litigation for violations of the FCRA, FDCPA, TILA, UDAAP, ITADA, and other relevant statutes. Each of these violations carries statutory penalties, and I will seek maximum damages, which could exceed {$XXXX} per violation. I will also pursue damages for emotional distress and financial harm caused by your illegal actions. 
File Additional Complaints : I will escalate this issue by filing additional complaints with the Federal Trade Commission ( FTC ), my states Attorney General, and the Consumer Financial Protection Bureau ( CFPB ), providing documentation of your unlawful practices. 
Seek Injunctive Relief : I will seek injunctive relief from the courts to prevent you from reporting this fraudulent account any further and to seek an order for removal of the account from all consumer reporting agencies. 
Public Exposure : I reserve the right to bring public attention to this matter through media outlets, social media, and consumer advocacy groups. Your continued illegal actions will not go unnoticed. 

I strongly advise you to take this matter seriously and comply with my demands. This is your final opportunity to resolve this issue before further legal actions are taken

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation