Consumer complaint received 2024-12-19 00:00:00
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: Brock & Scott, PLLC
State: NC

Complaint narrative:
This letter constitutes a formal notice of a billing error concerning account. I am requesting immediate review and correction of this error, specifically regarding the nature and accounting treatment of the alleged debt. I am invoking my right to recoupment based on established accounting principles, relevant Financial Accounting Standards Board ( XXXX ) pronouncements, and applicable sections of the United States Code. 
My understanding of double-entry bookkeeping, as implemented in a banking ledger ( general ledger ), is that every debit entry must have a corresponding credit entry. This principle ensures balance and transparency in financial records. In the context of this alleged debt, I require clarification on the following : XXXX Classification : Please provide documentation clearly indicating on which side of your ledger this alleged debt resides. Specifically, is it classified as a financial asset ( credit ) or a financial liability ( debit ) for your institution? 
Offsetting/Counterclaim : I am asserting a counterclaim against any alleged receivable you claim to hold against me. I am requesting you offset this alleged debt with my accounts payable and or other assets held by your institution. This request is based on the principles outlined in XXXX XXXX Standards Codification ( ASC ) XXXX ( formerly XXXX XXXX, Offsetting of Financial Assets and Liabilities ), which governs the conditions under which offsetting is permissible. I request you provide a documented explanation if your institution does not plan on offsetting my accounts payables or other assets against the alleged receivable. This is also in line with recoupment as an equitable remedy. 
Furthermore, in addressing this billing error and my recoupment request, I direct your attention to the following authoritative guidance : XXXX XXXX : I incorporate by reference relevant XXXX pronouncements, including but not limited to principles of securitization accounting ( formerly XXXX XXXX ) and guidance on derivative instruments and hedging activities ( formerly XXXX XXXX ). These standards are integral to understanding the proper accounting treatment of financial instruments and related transactions. FAS XXXX : XXXX for Transfers of XXXX Assets : This standard outlines the accounting treatment of securitization transactions, including the transfer of financial assets to a special purpose entity ( SPE ). 
FAS XXXX : XXXX for Transfers of XXXX Assets and Liabilities : This standard addresses the accounting for transfers of financial assets and liabilities, including the criteria for determining whether a transfer qualifies as a sale or a financing arrangement. * FAS XXXX : XXXX for XXXX Instruments and Hedging Activities : This standard provides guidance on the accounting for derivative instruments and hedging activities, including the recognition, measurement, and disclosure of derivatives. 
Title XXXX XXXX Code : I remind you that financial institutions are mandated by Title XXXX of the XXXX Code to adhere to Generally Accepted Accounting Principles ( GAAP ) and Generally Accepted Auditing Standards ( GAAS ). Your accounting practices must comply with these mandates. 
Title XXXX XXXX : Unfair Debt Collection Practices Act ( FDCPA ) This letter is also to serve as a written notification pursuant to the FDCPA. 
UCC : This letter is to provide notice as to the nature of the instrument in question. The underlying instrument is no longer a negotiable instrument it is now a security. In accordance with XXXX XXXX, XXXX the validity of the instrument is in question. 
I contend that without proper documentation demonstrating the correct accounting treatment of this alleged debt, including its classification and corresponding entries within your ledger, the validity of the billing is in question. I request that you provide this information within [ XXXX ] days of the date of this letter. Failure to provide satisfactory documentation and correct this billing error XXXX result in further action. 
I expect a prompt and thorough response to this matter.

Company response to consumer: Closed with explanation