Consumer complaint received 2026-04-28 00:00:00
Product: Debt collection — Rental debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: National Credit Systems,Inc.
State: NC

Complaint narrative:
This complaint documents willful, repeated violations of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq., and the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq. The subject company operates as a third-party contingency collector ( not a debt purchaser or assignee ) for XXXX XXXX XXXXXXXX , yet has furnished derogatory information to XXXX XXXX and XXXX without legal ownership of the debt or specific assignment authority to report. Despite multiple formal disputes, the collector has : ( 1 ) recycled the same legally insufficient " validation '' document that explicitly disclaims being a final accounting ; ( 2 ) deliberately obstructed my ability to submit exculpatory evidence by refusing to provide any submission mechanism ; ( 3 ) reported inaccurate information causing severe financial harm; and ( 4 ) violated the fundamental requirement that only debt owners or properly authorized assignees may report to consumer reporting agencies. DETAILED FACTUAL ALLEGATIONS I. FRAUDULENT " VALIDATION '' REPETITIVE PROVISION OF LEGALLY DEFECTIVE DOCUMENTATION Following multiple written disputes ( via certified mail and electronic means ), this collector has repeatedly provided the identical, legally insufficient documentation : a XX/XX/year> " Statement of Security Deposit Accounts '' issued by XXXX HXXXX XXXX. This document explicitly states : " This may NOT be a final accounting statement. '' Under North Carolina General Statutes 42-50 et seq., landlords must provide a final, itemized accounting within 30 days of lease termination. By attempting to validate a debt using a document that the original creditor expressly admitted was not final, and by refusing to provide the actual final accounting required by law, the collector has : Violated 15 U.S.C. 1692e ( 2 ) ( A ) False representation of the legal status of the debt Violated 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Furnishing information known to be inaccurate or with reckless disregard for accuracy Violated 15 U.S.C. 1681e ( b ) Failing to follow reasonable procedures to assure maximum possible accuracy The collector has failed to produce : Proof of assignment or legal ownership permitting credit reporting The statutorily required final accounting Itemized receipts substantiating the alleged {$2100.00} balance Justification for the one-year delay between move-out and collection placement II. DELIBERATE OBSTRUCTION REFUSAL TO PROVIDE EVIDENCE SUBMISSION MECHANISM In direct contravention of FCRA investigation requirements, this collector has refused to provide any physical mailing address, email address, fax number, or secure portal where I may submit critical evidence necessary for a reasonable investigation. This obstruction includes denial of access to submit : Email correspondence demonstrating repeated attempts to contact XXXX XXXX XXXX to resolve this matter prior to collection placement ; Documentary evidence that XXXXXXXX XXXX XXXX refused to accept payment when I tendered full payment of undisputed amounts, thereby manufacturing a default through their own refusal to accept lawful payment ; Contemporaneous dispute records showing the XX/XX/year> statement was immediately c ontested and never corrected to a final accounting as required by N.C.G.S. 42-50. By denying me the mechanism to submit evidence for their purported " investigation '' while simultaneously reporting inaccurate information to credit bureaus, the collector has violated 15 U.S.C. 1681i ( a ) ( 1 ) ( A ) ( failure to conduct reasonable investigation ) and 15 U.S.C. 1692g ( b ) ( failure to verify disputed debts ). III. UNAUTHORIZED CREDIT REPORTING BY CONTINGENCY COLLECTOR WITHOUT DEBT OWNERSHIP This constitutes the most egregious violation : The collector is operating as a mere contingency agent for XXXXXXXX XXXX XXXXXXXXnot a debt purchaser, assignee, or creditor. Under the FCRA and XXXX reporting standards, a collector may only report to credit bureaus if : It owns the debt ( purchased outright ) ; OR It has specific, documented written authority from the creditor to report on its behalf, with clear assignment of rights to report as a " furnisher. '' This collector has neither. It is collecting on a contingency fee basis only, meaning it receives payment only if it collects, but owns no legal interest in the debt itself. By reporting derogatory tradelines without ownership or specific assignment authority, the collector is : Falsely representing its legal status under 15 U.S.C. 1692e ( false representation of the character, amount, or legal status of any debt ) Furnishing information it has no legal right to furnish under 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Engaging in deceptive collection practices prohibited under 12 C.F.R. 1006.18 Third-party collectors operating on contingency lack standing to report to credit bureaus. Only the original creditor or a debt owner/assignee with written reporting authority may furnish information. This collector 's reporting is ultra vires and constitutes defamation per se. IV. BAD FAITH MANUFACTURE OF DEFAULT THROUGH REFUSAL TO ACCEPT PAYMENT As documented in email correspondence ( which the collector refuses to accept despite its relevance ), XXXXXXXX XXXX XXXX willfully refused to accept payment when I attempted to tender full payment of undisputed amounts prior to collection placement. This constitutes unclean hands and bad faith, rendering any subsequent collection efforts fraudulent. A creditor can not refuse lawful tender, convert the refused payment into a " default, '' and then damage a consumer 's credit through a third-party agent. V. TANGIBLE FINANCIAL HARM The continued reporting of this unsubstantiated, disputed debt by an unauthorized furnisher has caused : Denial of mortgage pre-approval and adverse interest rate adjustments Employment background check failures Auto loan denials Severe emotional distress, XXXX, and financial instability These damages are direct and proximate results of the collector 's willful non-compliance with federal law. LEGAL BASIS FOR ENFORCEMENT ACTION Table Violation Statutory Citation Specific Conduct Unauthorized Furnishing 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Reporting as contingency agent without debt ownership or assignment authority Failure to Verify 15 U.S.C. 1681i ( a ) ( 1 ) ( A ) Refusing to accept exculpatory evidence ; failure to conduct reasonable investigation False Representation 15 U.S.C. 1692e ( 2 ) ( A ) Representing that non-final statement constitutes validation ; claiming authority to report Obstruction of Dispute Process 15 U.S.C. 1692g ( b ) Denying mechanism to submit dispute evidence Inaccurate Reporting 15 U.S.C. 1681e ( b ) Reporting disputed, unverified, inaccurate information Unfair Practice 15 U.S.C. 1692f Attempting to collect via credit reporting while refusing to accept evidence of payment refusal REQUESTED RESOLUTION I demand the following mandatory corrective actions within 15 days of this complaint : IMMEDIATE PERMANENT DELETION of this tradeline from XXXX XXXX XXXX, and all other consumer reporting agencies. This deletion must be reported as " Deleted due to lack of furnisher authority '' or similar accurate coding, not " Disputed by consumer. '' FORMAL WRITTEN ACKNOWLEDGMENT from the collector confirming that it understands third-party contingency collectors without debt ownership or specific assignment authority are prohibited from reporting to credit bureaus under the FCRA and XXXX standards . CESSATION OF ALL COLLECTION ACTIVITIES pending proof of legal authority to collect and report this debt. PRODUCTION OF DOCUMENTATION showing the collector 's authority to report, including : ( a ) debt purchase agreement OR ( b ) written assignment from XXXX XXXX specifically authorizing credit reporting. CORRECTIVE ACTION TO XXXX XXXX requiring the original creditor to provide the final accounting required by N.C.G.S. 42-50 or cease collection efforts. REQUEST FOR ESCALATION TO ENFORCEMENT AUTHORITIES I respectfully request that the CFPB immediately refer this matter to : The North Carolina Attorney General, Consumer Protection Division, for investigation of unlicensed collection practices and violations of the North Carolina Debt Collection Act ( N.C.G.S. 58-70-1 et seq. ) ; The Federal Trade Commission ( FTC ), for systematic FCRA enforcement action against this collector 's practice of unauthorized reporting by contingency agents ; The Consumer Financial Protection Bureau 's Enforcement Division, for potential consent order proceedings given the willful nature of these violations and the collector 's refusal to correct conduct despite multiple disputes. The 15-day deadline for resolution is non-negotiable. Each day this unauthorized tradeline remains on my credit reports constitutes ongoing, compounding damages and continued willful violation of federal law. I reserve all rights to pursue private litigation under 15 U.S.C. 1681n ( willful FCRA violations ), 15 U.S.C. 1692k ( FDCPA statutory damages ), and applicable state law for defamation and unfair trade practices. GOVERN YOURSELVES ACCORDINGLY. Respectfully submitted,

Company response to consumer: Closed with explanation