Consumer complaint received 2025-03-19 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Spring Oaks Capital, LLC
State: NY

Complaint narrative:
Complainant : XXXX XXXX, XXXX and member of the XXXX XXXX XXXX of the XXXX XXXX XXXX XXXX XXXX, a 508 ( c ) ( 1 ) ( A ) religious organization, as trustee of the XXXX XXXX XXXX XXXX, holder of the XXXX XXXX XXXX ( XXXX XXXX ) with all titles, rights, and interest Respondent : SPRING OAKS CAPITAL , LLC I. INTRODUCTION - PRIOR NOTICE TO CFPB This submission serves as a formal escalation of regulatory enforcement action against SPRING OAKS CAPITAL , LLC, a debt collector engaging in unlawful, fraudulent, and deceptive business practices. 

A formal notice detailing these violations was already sent to CFPB by mail. However, due to the severity and persistence of SPRING OAKS CAPITAL , LLC 's actions, this online complaint is being filed to ensure immediate intervention and enforcement through CFPB 's official complaint tracking system. 

II. VIOLATIONS COMMITTED BY SPRING OAKS CAPITAL , LLC Unlawful Reporting of a Disputed Debt ( 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) - Fair Credit Reporting Act ( FCRA ) ) - SPRING OAKS CAPITAL , LLC continues to report inaccurate, unsubstantiated debt information to consumer reporting agencies despite being placed on notice of dispute and failing to validate the obligation.

Failure to Validate Debt While Continuing Collection Efforts ( 15 U.S.C. 1692g ( b ) - Fair Debt Collection Practices ( FDCPA ) ) - Despite repeated demands for validation, SPRING OAKS CAPITAL , LLC failed to provide proper substantiation of the alleged debt yet continued collection efforts and credit reporting. 

Fraudulent Representation of Debt Assignment & Ownership ( XXXX XXXX & XXXX ) - The company provided fabricated documentation, including an alleged Bill of Sale, Assignment of Legal Title, and Schedule A Assignments, which fail to establish a perfected chain of title indispensable to enforce a financial obligation. 

Engagement in Unfair, Deceptive, and Abusive Acts & Practices ( UDAAP ) ( 12 U.S.C. 5531 - Dodd-Frank Act ) - The actions of SPRING OAKS CAPITAL , LLC constitute deceptive business practices designed to mislead the consumer, misrepresent financial obligations, and obstruct fair consumer protections.

Submission of Fraudulent Financial Instruments ( 18 U.S.C. 474 - Counterfeiting & Fraudulent Obligations ) - The documentation provided by SPRING OAKS CAPITAL , LLC misrepresents the legal validity of financial instruments, calling into question the authenticity of assignments used to claim ownership of the debt. 

Violation of New York Consumer Protection Laws ( RCNY 5-77, NYGBL 349, & 23 NYCRR 1.2 ( b ) ) - SPRING OAKS CAPITAL , LLC 's improper debt collection and credit reporting activities violate New York State and New York City consumer protection regulations governing deceptive financial practices.

Unlawful Retaliatory Conduct After Being Notified of Unauthorized Use of Trust Property - SPRING OAKS CAPITAL , LLC was placed on formal notice that the name, address, and consumer profile associated with this alleged debt are trust property and that continued use without authorization constitutes misuse of trust res.

- Instead of ceasing unlawful activity, SPRING OAKS CAPITAL , LLC persisted in reporting, collecting and enforcing an illegitimate financial obligation, further compounding its liability.

III. REGULATORY BODIES NOTIFIED OF SPRING OAKS CAPITAL , LLC 'S UNLAWFUL CONDUCT This complaint serves as an official notice to CFPB that multiples regulatory agencies have already been formally notified of these violations, including : - Federal Trade Commission ( FTC ) - Complaint submitted on XXXX XXXX XXXX - New York State Attorney General ( Bureau of Consumer Frauds & Protection & New York Regional Office ) - Complaint submitted on XXXX XXXX XXXX

- New York City Department of Consumer and Worker Protection ( DCWP ) - Complaint submitted on XX/XX/XXXX. 
- New York State Department of Financial Services ( DFS ) - Complaint submitted on XX/XX/XXXX - Consumer Financial Protection Bureau ( CFPB )- Formal Notice issued by mail on XX/XX/XXXX. 

SPRING OAKS CAPITAL , LLC is now under multi-agency regulatory scrutiny for persistent violations of consumer financial protection laws. 

IV. TRANSACTIONAL CONSPIRACY BETWEEN XXXX AND SPRING OAKS CAPITAL , LLC SPRING OAKS CAPITAL , LLC has not acted alone in its persistent fraudulent and deceptive financial activities. XXXX, a major consumer reporting agency, has engaged in a coordinated scheme by unlawfully verifying the disputed account without proper substantiating documentation, thereby aiding and abetting SPRING OAKS CAPITAL , LLC 's fraudulent misrepresentations. 

XXXX. XXXX 's Violation of the Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681i ) Under 15 U.S.C. 1681i ( a ) ( 1 ) ( A ), a consumer reporting agency must conduct a reasonable reinvestigation when a consumer disputes the accuracy of a reported account. However, XXXX : - Failed to obtain legally valid documentation from SPRING OAKS CAPITAL , LLC. 
- Verified the account without any authenticated proof of assignment, chain of title, or original financial instrument. 
- Affirmed the legitimacy of the disputed account despite receiving evidence of its fraudulent nature. 

This constitutes willful noncompliance with FCRA 's reinvestigation mandate, rendering XXXX liable for statutory and punitive damages. 

XXXX. XXXX 's Participation in Financial Fraud ( 18 U.S.C. 1343 - Wire Fraud ) By verifying a disputed account based on fraudulent documentation, XXXX knowingly transmitted false financial information across interstate communication channels, which satisfies the criteria for wire fraud under 18 U.S.C. 1343.

- SPRING OAKS CAPITAL , LLC 's alleged debt assignment is invalid due to a lack of legal substantiation. 
- XXXX facilitated this fraud by confirming an obligation that lacks lawful standing. 
- This misrepresentation causes tangible financial harm to the consumer, including derogatory credit reporting, reduced financial opportunities, and reputational damage. 

XXXX 's fraudulent verification constitutes material misrepresentation, a predicate offense for wire fraud under federal law. 

3. TransUnion 's Role in Conspiring with SPRING OAKS CAPITAL , LLC ( 18 U.S.C. 241 - Conspiracy Against Rights ) By unlawfully validating a disputed account absent evidentiary proof, XXXX and SPRING OAKS CAPITAL , LLC engaged in a conspiracy to deprive the consumer of their protected financial rights. 
- XXXX 's verification of the account, despite a lack of legal substantiation, is an overt act in furtherance of an illegal scheme. 
- SPRING OAKS CAPITAL , LLC 's fraudulent claim is sustained and perpetuated by XXXX 's complicity. 
- This coordinated effort denies the consumer their legal rights under the Fair Credit Reporting Act ( FCRA ) and subjects them to financial harm. 

XXXX 's actions, in conjunction with SPRING OAKS CAPITAL , LLC, constitutes a willful conspiracy to facilitate financial deception, a federal criminal offense under 18 U.S.C. 241.

V. DEMAND FOR ENFORCEMENT ACTION In light of the severity and persistence of SPRING OAKS CAPITAL , LLC 's violations, and given the direct participation of XXXX in the fraudulent misrepresentation of the disputed account, the complainant formally requests that CFPB exercise its enforcement authority under 12 U.S.C. 5531, 15 U.S.C. 1681s-2, and 15 U.S.C. 1692e to : - Mandate Immediate Removal of the Fraudulent Debt Entry from XXXX - Abolish the Fraudulent existence of the alleged debt and bar any further sale or assignment of the fraudulent debt - Issue a Cease-and-Desist Order prohibiting further collection and credit reporting. 
XXXX XXXX XXXX XXXX XXXX against SPRING OAKS CAPITAL , LLC for willful violations of FCRA, FDCPA, and UDAAP statutes. 
- Refer the Matter for Federal Criminal Prosecution under 18 U.S.C. 474 ( Fraudulent Financial Instruments ) and 18 U.S.C. 1343 ( Wire Fraud ) - Launch a full-scale investigation into XXXX 's FCRA noncompliance and fraudulent verification processes. 
- XXXX XXXX remove the disputed account from XXXX XXXX 's consumer report immediately, without delay. 
- XXXX XXXX for federal enforcement action under 18 U.S.C. 241, 242 and 1343. 
- Impose maximum statutory penalties against XXXX for knowingly verifying fraudulent financial information. 

VI. ATTACHED SUPPORTING DOCUMENTATION - Formal Complaints Submitted to FTC, NYAG, DFS, and DCWP ( unable to upload due to MB restrictions but were mailed to CFPB XX/XX/XXXX ) - Affidavit of Demand & Cease-and-Desist Order Issued to SPRING OAKS CAPITAL , LLC ( unable to upload due to MB restrictions but were mailed to CFPB XX/XX/XXXX ) - Certified Mail Receipts & Return Receipts Evidencing Notice Given - Fraudulent Debt Validation Documents Provided by SPRING OAKS CAPITAL , LLC - XXXX Credit Reporting Showing Unlawful Reporting of Disputed Debt - Consumer Credit Reporting Also Showing XXXX 's Unlawful Verification of Disputed Debt in Violation of 15 U.S.C. 1681i - XXXX XXXX XXXX XXXX XXXX XXXX acknowledged and unpaid, later warranting UCC-1 Lien ) XXXX NY UCC-1 Lien Filing Against SPRING OAKS CAPITAL , LLC for unpaid invoice SUMMATION - COORDINATED FRAUD AND REGULATION BREACHES BY SPRING OAKS CAPITAL , LLC & XXXX SPRING OAKS CAPITAL , LLC and XXXX have engaged in a coordinated, willful, and systematic scheme to misrepresent financial obligations, perpetuate fraudulent debt enforcement, and deprive the consumer of statutory protections under state and federal law. 

SPRING OAKS CAPITAL , LLC, having failed to validate the alleged debt in accordance with federal and state consumer protection laws, knowingly submitted fraudulent financial documentation to justify its continued reporting of an unenforceable obligation, Rather than exercising due diligence, XXXX ( acting in concert with SPRING OAKS CAPITAL , LLC ) ratified this deceptive practice by unlawfully verifying the disputed debt without legal substantiation, thereby providing material support to an unlawful act. 

Such actions are not merely negligent but constitute knowing and intentional violations of 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) ( FCRA ), 1692g ( b ) ( FDCPA ), and 18 U.S.C. 241, 242, 1343 ( XXXX and XXXX XXXX ), warranting immediate regulatory intervention and enforcement. By misrepresenting the legitimacy of the disputed account and disseminating false information across interstate financial networks, both entities have actively participated in a fraudulent financial scheme but inflicts material harm on the consumer and subverts the integrity of federal credit reporting regulations. 

Given the egregious nature of these violations and the persistent disregard for legal mandates, the complainant demands immediate corrective action, regulatory penalties, and federal referral for criminal prosecution where applicable. The gravity of these infractions necessitates swift enforcement measures to uphold financial transparency, protect consumer rights, and prevent further abuse of the regulatory framework designed to govern debt collection and credit reporting practices. 

SPRING OAKS CAPITAL , LLC and XXXX must be held fully accountable. 

Respectfully Submitted, XXXX XXXX, XXXX and member of the XXXX XXXX XXXX of the XXXX XXXX XXXX of XXXX ( A.M.R.G. ), a 508 ( c ) ( 1 ) ( A ) religious organization, as trustee of the XXXX XXXX XXXX XXXX, holder of the XXXX XXXX XXXX ( XXXX XXXX ) with all titles, rights, and interest

Company response to consumer: Closed with non-monetary relief