Consumer complaint received 2025-08-03 00:00:00
Product: Debt collection — Rental debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: I.C. System, Inc.
State: TX

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX 
XXXX XXXX, TX XXXX Phone : ( XXXX ) XXXX Email : XXXX Date : XX/XX/XXXX To : Consumer Financial Protection Bureau XXXX. XXXX XXXX Washington , DC XXXX Phone : ( XXXX ) XXXX Online : https : //www.consumerfinance.gov/complaint Subject : Formal Complaint Fraudulent Lease Inducement, Deceptive Business Practices, and Unlawful Debt Collection Dear Consumer Protection Division, I am submitting this formal complaint to report serious violations of the Texas Deceptive Trade Practices Act ( DTPA ), Texas Debt Collection Act ( TDCA ), and the federal Fair Debt Collection Practices Act ( FDCPA ) committed by the following entities : 1. Landlord : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX Phone : ( XXXX ) XXXX Email : XXXX 2. Collection Agency # 1 : XXXX XXXX XXXX XXXX. 
XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX Phone : ( XXXX ) XXXX Vice President : XXXX XXXX Emails : XXXX, XXXX, XXXX Website : XXXX 3. Collection Agency # 2 : I.C. System, Inc. 
XXXXXXXX XXXX XXXX XXXXXXXX XXXX XXXX, MN XXXX Phone : ( XXXX ) XXXX | ( XXXX ) XXXX Consumer Affairs : ( XXXX ) XXXX Chairman & CEO : XXXX XXXX President : XXXX XXXX XXXX XXXX. 
Email : contactus@icsystem.com Website : www.icsystem.com Background and Summary of Misconduct In late XXXX, I entered into a lease agreement with XXXX XXXX XXXX to rent a salon suite at XXXX XXXX XXXX. Prior to signing, I relied on written assurances sent via text message from XXXX XXXX, which stated : Start in XXXX No deposit. I will ramp your rent over 3 months. 4 weeks at {$170.00} per week, next 4 weeks at {$190.00}, next 4 weeks at {$200.00} per week. Then full rent of {$210.00} per week for the remaining lease. 
Based on these written representations, I entered the lease in good faith, reasonably believing that : No security deposit would be required, Rent would gradually increase over a three-month ramp-up period, and There were no long-term lease obligations tied to the deposit waiver. 
However, XXXX XXXX later inserted an Additional Provisions section into the written lease, which I was not made aware of prior to signing. This clause required a 13-month lease commitment in exchange for waiving the deposita term that was never disclosed, negotiated, or consented to. 
Had I been informed of these terms, I would have paid a deposit and retained flexibility to exit the lease earlierespecially given the unique requirements of my beauty business, which depends on a quiet and peaceful environment. 
This post hoc inclusion of a materially adverse termwithout notice or informed consentconstitutes fraudulent inducement, material misrepresentation, and unconscionable conduct under both statutory and common law principles. 

Fraudulent Scheme and Lease Entrapment XXXX XXXX conduct amounts to a bait-and-switch scheme, wherein she provided deliberately incomplete lease terms via text to induce my reliance and execution, only to later bind me to undisclosed, prejudicial provisions. This conduct represents a clear violation of the DTPA, particularly under : 17.46 ( b ) ( 5 ) : Representing that an agreement confers rights, remedies, or obligations which it does not have or involve.

17.46 ( b ) ( 24 ) : Failing to disclose material information to induce a consumer into a transaction.

Settlement and Subsequent Breach by Landlord After enduring persistent noise disturbances due to the open-ceiling construction and adjacent tenants, I was forced to vacate and relocate out-of-state. Recognizing the hardship, XXXX XXXX agreedvia written text and verbal communicationto a settlement allowing early termination in exchange for XXXX XXXX monthly payments over six months ( totaling {$3000.00} ). I fulfilled this agreement in full. 

Unlawful Debt Collection Activity and Harassment Despite honoring the settlement terms, I was later pursued by two separate debt collection agencies, each reporting wildly inconsistent and inflated balances : XXXX XXXX XXXX XXXX : {$7800.00} I.C. System, Inc. : {$11000.00} These dual and conflicting referrals suggest willful attempts to double collect and fabricate debt, constituting : Misrepresentation of debt under 15 U.S. Code 1692e, Failure to validate the debt upon request under 15 U.S. Code 1692g, and Harassment and coercion in violation of 392.302 TDCA.

A representative from Innovative Recovery, identified as " XXXX, '' refused to provide documentation until prompted, and subsequently imposed a 72-hour deadline under threat of increased chargesclearly a bad faith collection tactic designed to pressure and intimidate.

Relief and Enforcement Requested I respectfully request that the Office of the CFPB : 1. Initiate a formal investigation into XXXX XXXX XXXX for deceptive business practices, fraudulent inducement, and misrepresentation ; 2. Validate and enforce the six-month settlement agreement as satisfaction of all lease-related debt and immediately expunge the erroneous debt from all records ; 3. Audit and scrutinize the dual referral practices and inconsistent balances submitted by the collection agencies ; 4. Determine the legal compliance and licensing status of XXXX XXXX and I.C. System in Texas ; 5. Mandate the immediate cessation of all unlawful debt collection activities, and compel the agencies to retract and correct any negative credit reporting ; 6. Pursue civil penalties and injunctive relief, as permitted under applicable consumer protection statutes ; 7. File this complaint as a matter of public record and consumer interest.

Supporting Documentation Available Upon Request Original lease and undisclosed Additional Provisions Text messages confirming lease terms and settlement Payment records totaling {$3000.00} Written correspondence with both debt collectors Timeline of events and damages incurred As a XXXX  mother and small business owner, I placed my trust in the good faith of a landlords written communication and was ultimately ensnared by misleading representations, unlawful lease terms, and predatory debt collection. I humbly ask for your assistance in protecting my consumer rights and holding these parties accountable under Texas law. 
Thank you for your attention, service, and commitment to justice. 
Sincerely, XXXX XXXX

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