Consumer complaint received 2025-05-06 00:00:00
Product: Debt collection — Credit card debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: CL Holdings LLC
State: MI

Complaint narrative:
I am submitting this complaint against Jefferson Capital Systems , LLC and the original creditor XXXX XXXX Bank for attempting to collect on an alleged charged-off debt through the so-called Payment Rewards Program without proper validation, documentation, or legal authority. I am requesting immediate action to require Jefferson Capital to cease all collection activity and communication, as this debt has not been verified and is not currently on my credit report. 



Account and Program Details : Original Creditor : XXXX XXXX XXXX  Current Collector : Jefferson Capital Systems , LLC Alleged Balance : {$720.00} Charge-Off Date : XX/XX/XXXX Letter Date : XX/XX/XXXX Program Reference : # XXXX ( Payment Rewards Program ) Credit Reporting Status : Not currently reported State of Residence : Michigan XXXX XXXX Violation of FDCPA 809 ( b ) : Failure to Provide Legal Proof or Chain of Title Jefferson Capital has failed to provide proper debt validation or documentation proving they have the legal right to collect on this account. 

Required documentation under federal law includes : The original signed credit agreement with XXXX XXXXXXXX XXXX  A bill of sale or assignment agreement to Jefferson Capital Documentation of all interim ownership transfers, if any A full itemized breakdown of the debt ( principal, interest, fees ) Legal date and terms of assignment Rebuttal : The letter sent by Jefferson Capital only includes a generic balance statement and an offer to enter a repayment program. This does not qualify as legal validation. A letter from XXXX XXXXXXXX XXXX  is not sufficient under the FDCPA, as it does not confirm that Jefferson Capital has lawful ownership or authority to collect. Without the full chain of title, this collection activity is unlawful. 



XXXX. Violation of UDAAP Deceptive Marketing of the Payment Rewards Program The Payment Rewards Program is promoted as a voluntary credit opportunity but is actually a veiled attempt to collect on an unvalidated debt. Jefferson Capital entices consumers to pay {$500.00} over 12 months in exchange for a {$220.00} Debt Reduction Credit and a low-limit ( {$470.00} ) unsecured credit card with up to a XXXX XXXX XXXX 

Rebuttal : This program is inherently deceptive and abusive. It falsely presents itself as a rewards or credit-building offer while functioning as a coerced collection tactic, pressuring consumers to pay on debts that are disputed or unverified. Jefferson Capital is using predatory marketing practices to bypass federal consumer protection laws, and the offer contains no clear explanation of the consumers right to dispute the debt. It also fails to disclose the lack of legal ownership.

3. Violation of FDCPA 805 ( c ) : Unlawful Communication Despite Lack of Consent Under federal law, once a consumer notifies a collector that they refuse to pay a debt or wish no further contact, the collector must immediately cease communication unless pursuing specific legal remedies.

Rebuttal : I am formally stating that I dispute the validity of this debt and refuse to make any payment unless Jefferson Capital provides complete, verifiable legal documentation of their authority to collect. They must also cease all communication, including further letters or calls, unless complying with legal action. Any additional contact after this notice is a direct violation of the FDCPA.

4. Violation of Fair Credit Reporting Act ( FCRA ) 623 ( a ) : Preemptive Collection Without Reporting Standards While this debt is not currently on my credit report, Jefferson Capital is engaging in pre-reporting collection without first validating the debt per federal requirements.

Rebuttal : Even though this debt is not yet reported to credit bureaus, Jefferson Capital is attempting to collect without satisfying the standard of accuracy and ownership under FCRA. If this account were to appear on my credit report in the future without proof of ownership and a verified chain of title, that would constitute a serious FCRA violation. Their current attempt to collect already raises major red flags under these standards.

Requested Resolution : Immediate cease and desist of all communication and collection activity from Jefferson Capital Prohibit any future attempts to collect until complete debt validation and full chain of title are provided Investigate the Payment Rewards Program as a potentially deceptive UDAAP violation designed to exploit consumers Prevent this debt from ever being reported to any credit bureau unless Jefferson Capital can prove legal ownership and consumer consent Evidence Submitted : Payment Rewards Program Letter ( dated XX/XX/XXXX ) Summary of Credit Terms XXXX XXXX XXXX XXXX  ) Participation Form requiring financial disclosure without proof of debt validation Letter from XXXX XXXX XXXX  ( which fails to meet legal validation standards ) Jefferson Capital has failed to validate this debt, has not proven legal ownership, and is attempting to collect through coercive and misleading marketing tactics. I do not owe them, and I will not tolerate continued communication or collection attempts without full legal documentation. Please require Jefferson Capital to comply with the law and immediately halt all activity related to this alleged account.

Company response to consumer: Closed with explanation