Consumer complaint received 2024-09-27 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Indicated you were committing crime by not paying debt
Company: Army and Air Force Exchange Service
State: TX

Complaint narrative:
I am writing to formally file a complaint against the Military Star Card, managed by the Army and Air Force Exchange Service ( AAFES ), for engaging in unlawful debt collection practices in violation of Texas Finance Code Section 392.101, as well as potential violations of the Fair Debt Collection Practices Act ( FDCPA ) and Fair Credit Reporting Act ( FCRA ). 

XXXX. Violations of Texas Finance Code Section 392.101 : According to Section 392.101 of the Texas Finance Code, a third-party debt collector or credit bureau must obtain a surety bond and file a copy of this bond with the Office of the Secretary of State before engaging in any debt collection activities in Texas. This provision clearly states : A third-party debt collector or credit bureau may not engage in debt collection in this state unless the third-party debt collector or credit bureau has obtained a surety bond and filed a copy of the bond with the Office of the Secretary of State.

Military Star Card has engaged in debt collection activities against me in the state of Texas without meeting this legal requirement. This failure to comply with Texas law means that all collection activities conducted by Military Star Card in this state are unlawful. I have verified with the Office of the Secretary of State that no such bond has been filed by Military Star Card or AAFES, which constitutes a direct violation of Texas Finance Code Section 392.101. 

XXXX. Potential Violations of the Fair Debt Collection Practices Act ( FDCPA ) : Military Star Card has also engaged in collection activities that may constitute violations of the FDCPA, including but not limited to : Harassment and intimidation through repeated phone calls and threatening language.

Misrepresentation of the amount, character, or legal status of the alleged debt. 

These actions are causing undue stress and anxiety, and they are in direct violation of my rights as a consumer under the FDCPA. 

XXXX. Potential Violations of the Fair Credit Reporting Act ( FCRA ) : In addition to the aforementioned issues, Military Star Card has reported inaccurate and misleading information to credit bureaus regarding this alleged debt, which has not been properly validated. This is in violation of the FCRAs requirements to ensure the accuracy of information being reported. I have disputed this information, but no proper investigation or correction has been made by Military Star Card. 

XXXX. Unauthorized Reporting and Usage of Consumer Report : Military Star Cards actions include unauthorized access and reporting of my consumer information without a permissible purpose. This is a violation of FCRAs permissible purpose requirements under 15 U.S.C. 1681b. Such actions amount to identity theft and an unlawful use of my personal information, further exacerbating the harm done to me.

Requested Action : I request that the CFPB take immediate action to : XXXX. Investigate Military Star Cards compliance with Texas Finance Code Section 392.101 and other applicable federal laws. 
XXXX. Require Military Star Card to cease all collection activities in Texas until they have obtained and filed the necessary surety bond with the Office of the Secretary of State. 
XXXX. Instruct Military Star Card to remove all inaccurate and unauthorized information from my consumer report. 
XXXX. Impose appropriate penalties on Military Star Card for their unlawful actions and ensure compliance with both state and federal laws.

I trust that the CFPB will take the necessary steps to address these serious violations and protect my rights as a consumer. I look forward to your prompt response and action on this matter.

Thank you for your attention to this urgent issue. 

Sincerely, XXXX XXXX XXXX All Rights Reserved.

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