Consumer complaint received 2025-04-25 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: Ability Recovery Services, LLC
State: TX

Complaint narrative:
XXXX received " debt verification form '' from XXXX XXXX XXXX XXXX stating the original creditor was 'XXXX XXXX XXXXXXXX ' and current creditor is " XXXX XXXX XXXX, XXXX. 
- amounts of debt claiming to be owed : {$1200.00} -- XXXX : XX/XX/XXXX & {$1100.00} -- XXXX : XX/XX/XXXX - No itemized medical bill has been provided for services provided. 
- 'Ability Recovery Services , LLC ' is the debt collection agency present has the company that has filed the derogatory marks with Both XXXX & XXXX credit bureaus. 
- XXXX XXXX XXXX XXXX contacted -- XX/XX/XXXX ( XXXX - XXXX XXXX XXXX XXXX ' contacted -- XX/XX/XXXX ; contact number listed is out of service ( XXXX ). 
- XXXX XXXX XXXX XXXX contacted -- XX/XX/XXXX ; company states they no longer hold the rights to collect the debt. Contact 'XXXX XXXXXXXX XXXX XXXX XXXX ' for further information - 'XXXX XXXX XXXXXXXX XXXX XXXX ' contacted -- XX/XX/XXXX ; advised to contact 'Ability Recovery Services XXXX XXXX XXXX regarding questions surrounding the debt collection. 
- 'Ability Recovery Services , LLC ' contacted -- XX/XX/XXXX & XX/XX/XXXX & XX/XX/XXXX ( XXXX ) XXXX ; company states debt collection account has been closed and returned to XXXX XXXX XXXX XXXX XXXX ' XXXX in which the debt will be redistributed per a different collection agency within the next 30 days. 

Disputes with both XXXX and XXXX submitted twice since XX/XX/XXXX for both derogatory remarks balances of {$1100.00} & {$1200.00}, in which both cases the credit bureaus have confirmed the " debt '' with 'Ability Recovery Services '.

Per consumerfinance.gov, " If you previously had a medical collection under {$500.00}, a paid medical collection, or a collection less than a year old on your credit report, check to make sure they no longer appear on your reports. On the attached documents, and as referenced above, you will find that the " debt collections '' were open and reported as of XX/XX/XXXX. Contact has been established with all said companies listed above ( XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX, and Ability Recovery Services , LLC. The revolving circulation of my consumer information such as legal name, DOB, and social security identification number has been shared with multiple companies that claim to no longer have interest in collecting the debt mentioned above. I've requested and have yet received any itemized bills referencing this " debt '' outside of " Debt Verification Forms '' with an attached XXXX XXXX XXXX XXXX XXXX Statement ' displaying account information and charges.

The most recent contact with the current debt collection agency, 'Ability Recovery Services , LLC ', has mentioned that in the next 30+ days, the collection will be removed from my credit profile via all 3 major credit bureaus ( TrXXXX XXXX and XXXX ) and reapplied via a different debt collection agency. This revolving situation seems to be abuse of a consumer 's financial protections, rights, and identity. 

Insurer, XXXX XXXX XXXX XXXX ( XXXX ), never received claims from provider " XXXX XXXX XXXX '' for medical service debt listed above. 

Prohibition on Creditors and Consumer Reporting Agencies " For the reasons set forth herein, the CFPB is finalizing its interpretation as set forth in the proposed rule that for information about a consumers debt to be medical information under FCRA section 603 ( i ), the information must relate to a debt the consumer owes, or at one time owed, directly to a health care provider or to the health care providers agent or assignee for the provision of the health care underlying the payment obligation. The CFPBs interpretation includes medical information in the form of a civil judgment arising from a debt collection action as to a medical debt directly owed to a health care provider or their assignee ( i.e., a debt buyer ), whether provided on a consumer report, by the consumer on a credit application, or if the creditor learns of the civil judgment through other means ; a credit score that had weighed medical debt information ; and debts arising from medical care that is elective, or otherwise not medically necessary ( e.g., some cosmetic surgeries ).

As discussed later in this part with regard to the definition of medical debt information under proposed and final 1022.3 ( j ), the CFPB also finalizes its approach that its interpretation includes medical debt that has been sold or resold to a debt buyerwho has become the health providers assignee for the debt, because the payment obligation that was sold was created by a health care provider and at one time was owed to the health care provideras well as medical debt that has been assigned to a third-party debt collector, who is acting as an agent on behalf of the health care provider or debt buyer to whom the debt is owed. The CFPB also addresses comments regarding the CFPBs approach as to medical information about debts arising from elective versus non-elective care with the other comments about the CFPBs proposed medical debt information definition.... Under final 1022.38, consumer reporting agencies will generally be prohibited from furnishing consumer reports reflecting medical debt information to creditors, and any credit score based on the information in a consumers file generally would not weigh medical debt information after the effective date of the final rule. Accordingly, no safe harbor is required.120... The CFPB proposed an effective date for this final rule of 60 days after publication in the Federal Register in accordance with the Administrative Procedure Act, which generally requires that rules be published not less than 30 days before their effective dates.

175 ... The CFPB has considered these comments and determines to FINALIZE the effective date as proposed.

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