Consumer complaint received 2025-08-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: GFS II, LLC
State: MO

Complaint narrative:
To the Consumer Financial Protection Bureau ( CFPB ) : Entity : Gateway Financial Solutions ( GFS XXXX  LLC ) Submitted By : XXXX XXXX XXXX : XX/XX/XXXXXXXX  Subject : Formal Complaint Willful Violations of Federal Law, Noncompliance, and Deceptive Reporting Practices I am submitting this formal complaint against Gateway Financial Solutions ( GFS XXXX LLC ) for multiple willful violations of federal law and regulatory standards. The company has reported an unverified and inconsistent tradeline on all three major credit bureaus XXXX, XXXX, and XXXX  for over a year, causing substantial harm to my financial integrity, emotional well-being, and access to credit. 

Despite previous disputes, the company refused to provide verification, falsely stated the account was verified, and continues to report derogatory information without legal standing or contractual basis. 

VIOLATIONS IN DETAIL 1. FCRA Violations 15 U.S.C. 1681 et seq.

1681e ( b ) : GFS failed to ensure the maximum possible accuracy of consumer information. My credit reports contain inconsistent balances and status codes for the same account across different bureaus, indicating gross negligence or fraud.

1681i ( a ) ( 6 ) ( B ) ( iii ) : After my disputes, GFS provided a vague response stating that the debt was verified, but failed to identify how or by whom it was verified. This is a direct violation of the required reinvestigation process and violates consumer due process. 
1681s-2 ( a ) ( 1 ) ( A ) : Furnishing information known to be inaccurate. GFS continued to report the account without substantiation and no original contract or signed agreement.

1681c ( a ) ( 4 ) : Reporting obsolete data or data beyond permissible reporting timelines is a violation. Their account status reflects outdated or improperly aged derogatory marks.

2. GLBA & Privacy Rule Violations 15 U.S.C. 68026805 & 16 CFR 313.7 GFS failed to disclose how my non-public personal information was obtained or used. Under GLBA, they are required to provide a privacy notice and give consumers the opportunity to opt out of third-party sharing, which they never did.

16 CFR 313.7 ( a ) ( 1 ) ( iii ) states that data can not be reused or redistributed unless clear disclosure and opt-out mechanisms are provided. GFS unlawfully reported data and possibly shared it with third parties without lawful consent.

3. Privacy Act of 1974 5 U.S.C. 552a GFS collected and disseminated inaccurate, unverifiable data without any authorization or oversight, violating my privacy rights. Their failure to maintain accurate records or ensure proper identity verification breaches federal data handling standards.

4. Truth in Lending Act ( TILA ) 15 U.S.C. 1666b GFS is attempting to collect on an account without ever providing a breakdown of billing or lawful disclosures. No statement, billing history, or invoice has been provided. They have not identified the amount owed, how it was calculated, or who owns the alleged debt.

5. UCC Violations Uniform Commercial Code UCC 3-501 / 3-505 : GFS failed to produce the original promissory note or instrument, nor did they respond to my presentment request. Under UCC, the holder must provide the original document in order to establish standing.

UCC 9-210 : I made a formal demand for an accounting. GFS failed to comply. This statute requires a secured party to produce a full accounting of the debt, including dates, balances, and evidence of ownership or assignment.

False assignment of credit : GFS has not disclosed whether the debt was assigned or securitized. If so, they are required under UCC Article 9 to file proper lien documentation and serve written notice, none of which was done.

6. IRS Publication 525 ( Income from Discharge of Indebtedness ) If GFS marked this account as charged off, it is considered canceled debt and treated as income by the IRS. Under law, once a debt is canceled and reported as income, it can not be collected or reported again as outstanding debt. GFS is illegally reporting the same tradeline as a collectible debt after charge-off, a deceptive and unlawful practice.

7. Unfair and Deceptive Acts or Practices 15 U.S.C. 45 ( FTC Act ) GFS continues to furnish information that is misleading, unverifiable, and causes reputational harm. This is a classic UDAAP violation. Their failure to respond, explain, or verify indicates reckless disregard for consumer protections.

8. Pattern of Fraudulent Behavior & Prior Investigations Gateway Financial Solutions ( GFS XXXX LLC ) has a documented history of being involved in prior investigations and consumer complaints across several regulatory platforms, including the XXXX XXXX XXXX  ( XXXX  ) and the Consumer Financial Protection Bureau ( CFPB ). These complaints detail similar conduct : deceptive reporting, refusal to validate debts, misrepresentations in communications, and failure to follow lawful dispute procedures. 

Their repeated violations indicate not an isolated error, but a systemic business practice rooted in fraud and noncompliance. This pattern of conduct supports a finding of willful and negligent behavior under 15 U.S.C. 1681n and 1681o, entitling the injured party to damages and regulatory action.

Evidence : Attached to this complaint are screenshots of my XXXX, XXXX, and XXXX  credit reports ( XX/XX/XXXXXXXX  ) showing GFSs conflicting reporting, inaccurate balances, and fraudulent tradeline status. Also included are their vague verified responses from prior disputes with no supporting documentation. 

Desired Resolution I respectfully demand the following relief : 1.Immediate deletion of the GFS tradeline from all three credit reporting agencies.

2.Written assurance that the account will not be reinserted in the future.

3.Disclosure of all information GFS relied upon to verify the account, including the original contract, assignment history, UCC filings , and billing statements.

4.Monetary compensation of at least {$4500.00} for emotional distress, time lost, and financial hardship caused by Gateway Financial Solutions ongoing violations and unlawful reporting. 

Should this matter not be resolved, I reserve the right to file : A formal lawsuit in equity under Missouri law, A complaint with the FTC and SEC for possible securitization fraud, And direct complaints with state banking regulators.

Company response to consumer: Closed with explanation