Consumer complaint received 2026-05-29 00:00:00
Product: Debt collection — Other debt
Issue: Written notification about debt — Notification didn't disclose it was an attempt to collect a debt
Company: Clear Recovery, Inc.
State: NJ

Complaint narrative:
Subject : Second CFPB Complaint Improper Collection Referral Resulting From Merchant Processing Error I am submitting this follow-up complaint regarding XXXX XXXX and Clear Recovery , Inc . The collection agencys official response confirms that the alleged debt resulted from XXXX XXXX own transaction processing failure and not from any refusal or failure on my part to pay. According to Clear Recovery , Inc., XXXX XXXX delayed processing the credit card transaction until shipment of the merchandise. Because of that delay, the original payment authorization expired before XXXX XXXX attempted to capture the payment. The collection agency specifically stated that XXXX XXXX did not complete the charge within the authorization hold period. This confirms the following facts : * I made a valid payment attempt in good faith during the online purchase process ; * The payment issue resulted from XXXX XXXX internal processing procedures; * The failure was not caused by fraud, refusal to pay, or insufficient cooperation from me; * XXXX XXXX nevertheless referred the account to collections despite knowing the issue originated from their own processing delay. It is improper and unfair for a merchant to transfer an account to collections when the alleged balance exists because of the merchants own billing or authorization handling failure. Additionally, I was not properly notified before the account was referred to collections. If XXXX XXXX had informed me that the authorization expired or that the transaction needed to be reprocessed, this matter could have been resolved directly without collection involvement. Clear Recovery , Inc. also confirmed that : * The account is currently in dispute status ; * Collection activity has been halted ; and * They do not report to credit bureaus. However, merely placing the account in dispute status is not sufficient. Since the collection agency and XXXX XXXX both acknowledge that the underlying issue was caused by the merchants own transaction processing failure, the collection account should be permanently closed and withdrawn. Therefore, I respectfully request that the CFPB require the following : 1. Immediate closure and withdrawal of the collection account ; 2. Written confirmation that no negative credit reporting has occurred or will occur ; 3. Confirmation that XXXX XXXX will not pursue further collection efforts related to this matter ; 4. Correction of XXXX XXXX records to reflect that the issue originated from merchant processing error rather than consumer nonpayment ; and 5. Investigation into whether referring accounts to collections under these circumstances violates consumer protection standards. I believe consumers should not be subjected to collection activity for balances created by a merchants own payment processing failures.

Company public response: Company believes complaint caused principally by actions of third party outside the control or direction of the company
Company response to consumer: Closed with explanation