Consumer complaint received 2026-01-27 00:00:00
Product: Debt collection — Rental debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: MI

Complaint narrative:
XXXX has repeatedly verified an alleged debt despite failing to conduct a lawful investigation or provide a valid Method of Verification, even after I formally disputed the account and demanded compliance under federal and Michigan law. 

Rather than produce competent evidence, original account documentation, or chain-of-title records, XXXX appears to rely on automated or superficial verification processes that do not meet statutory requirements. This conduct reflects systemic noncompliance, not a good-faith investigation. 

XXXX  actions demonstrate a pattern of willful disregard for consumer protection laws and the integrity of credit reporting. 

Failure to Conduct a Reasonable Investigation ( FCRA ) Under 15 U.S.C. 1681s-2 ( b ), furnishers must conduct a reasonable investigation and correct or delete unverifiable information. 

XXXX did not review or produce : Original creditor contracts Account-level transaction history Payment records Lawful basis for reporting Proof of debt ownership or assignment Verifying data from an internal database alone does not satisfy the FCRA. 

Relevant authority includes : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXXXXXX XXXX XXXX ) XXXX v. XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX ( XXXXXXXX XXXX XXXXXXXX ) XXXXXXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) XXXX conduct constitutes a failure to conduct a reasonable investigation and a knowing perpetuation of potentially false credit information. 

Failure to Provide a Lawful Method of Verification ( FCRA 611 ) I formally requested a Method of Verification under 15 U.S.C. 1681i ( a ) ( 6 ) ( B ) ( iii ).

XXXX failed to disclose : The specific procedures used to verify the account The actual records reviewed The identity of the verifying party The source documents relied upon Generic statements such as verified as accurate or internal system checks do not satisfy Method of Verification requirements. 

Supporting case law : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX XXXXXXXX ) This failure undermines the legality of XXXX  verification and continued reporting. 

FDCPA Violations False Representation & Improper Validation XXXX continues to report and verify this debt without providing lawful validation, violating the Fair Debt Collection Practices Act. 

Violations include : 15 U.S.C. 1692e False or misleading representations 15 U.S.C. 1692g ( b ) Failure to properly validate the debt 15 U.S.C. 1692f Unfair or unconscionable collection practices By reporting and verifying an unvalidated debt, XXXX misrepresents the legal status and enforceability of the account. 

Michigan Law Violations XXXX  conduct also violates Michigan consumer protection and collection statutes, including : Michigan Occupational Code Collection Practices MCL 339.915 Prohibits deceptive, misleading, and unconscionable collection behavior. 

Michigan Consumer Protection Act MCL 445.903 Prohibits unfair, misleading, or unlawful business practices.

Michigan Fair Credit Reporting Act MCL 445.251 et seq. 

XXXX  failure to provide lawful verification and continued reporting constitutes deceptive business conduct under Michigan law. 

Willful and Negligent Noncompliance Civil Liability XXXX  repeated verification after receiving formal disputes and Method-of-Verification requests demonstrates willful noncompliance, triggering civil liability under : Federal 15 U.S.C. 1681n Willful noncompliance ( statutory & punitive damages ) 15 U.S.C. 1681o Negligent noncompliance 15 U.S.C. 1692k FDCPA civil remedies Michigan MCL 445.911 Private right of action, damages, and attorney fees Harm Caused XXXX unlawful reporting has caused : Credit score suppression Higher borrowing costs Impaired mortgage and lending opportunities Time loss, financial harm, and emotional distress Ongoing reputational and financial injury Regulatory & Litigation Notice If XXXX continues to verify this account without producing lawful documentation and a valid Method of Verification, I am prepared to pursue : Federal litigation under the FCRA and FDCPA Michigan statutory claims Actual, statutory, and punitive damages Attorney fees and litigation costs Additional enforcement complaints with the Michigan Attorney General This complaint places XXXX on formal notice of regulatory exposure and civil liability. 

Requested Resolution I demand that XXXX : Delete or correct this account if lawful verification can not be produced Provide a complete, lawful Method of Verification Produce proof of ownership, assignment, and account accuracy Cease inaccurate reporting immediately Confirm compliance in writing

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