Consumer complaint received 2025-11-17 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Lender trying to repossess or disable the vehicle
Company: Prizm Financial Company, LLC
State: TX

Complaint narrative:
PRIZM FINANCIAL FORMAL REBUTTAL & DEMAND FOR CORRECTION RE : Illegal Repossession During an Active Federal Automatic Stay FTC Identity Theft Report XXXX XXXX  XXXX To Whom It May Concern : This correspondence is a direct rebuttal to the false and misleading statements made by Prizm Financials counsel in response to my consumer complaint. The response submitted on XX/XX/year> is factually incorrect, legally inaccurate, and intentionally omits core federal protections under Title 11 of the United States Code.

Your attorneys explanation is not only dishonest it openly admits conducting that constitutes a willful violation of the automatic stay under 11 U.S.C. 362 ( a ) and a continuing stay violation eligible for damages, sanctions, punitive damages, and attorney fee-shifting under 11 U.S.C. 362 ( k ).

This statement serves as formal notice that Prizm Financials position is rejected in full.

________________________________________ * * 1. THE AUTOMATIC STAY ATTACHES THE MOMENT A PETITION IS FILED NOT WHEN A CREDITOR DECIDES IT COUNTS. * * Prizm repossessed my vehicle on XX/XX/year>. 
I filed XXXX XXXX case XXXX on XX/XX/year>. 
This is undisputed. 
Under Bankruptcy Rule 1002 and 11 U.S.C. 362 ( a ), the stay : activates immediately is effective upon timestamp by the Clerk requires no judge approval to begin is binding on all creditors applies even if a case is later dismissed applies even if a debtor is later found ineligible A filing being barred DOES NOT erase the automatic stay.

A petition under bar is voidable, not void, until the judge rules.

This is established, controlling bankruptcy law.

Your attorneys claim that the stay did not exist because I was time-barred is legally wrong and deeply misleading. The Clerk accepted the petition, assigned a number, and activated the federal stay. Period.

Prizm repossessed DURING that stay.

Strict liability attaches immediately.

________________________________________ * * 2. EVEN IF THE REPOSSESSION OCCURRED HOURS BEFORE THE FILING, YOUR CONTINUED POSSESSION IS A SEPARATE, ONGOING VIOLATION. * * From XX/XX/XXXX XX/XX/XXXX, Prizm : kept the vehicle refused turnover assessed fees prepared the sale continued collection activity and ultimately auctioned estate property on XX/XX/XXXX XXXX United States Supreme Court precedent and multiple Circuit rulings : Retention of estate property after a post-petition repossession constitutes a continuing violation of the automatic stay. 
In re XXXX XXXX re XXXX XXXX XXXX. 
In re XXXX Once you learned of the filing, you were required by law to return the vehicle immediately. 
You did not. 
That alone exposes you to damages and punitive sanctions. 
________________________________________ 3. THE TRO AND EMERGENCY MOTION DENIALS DO NOT VALIDATE YOUR MISCONDUCT.

Your attorney intentionally misused the procedural denial of the Temporary Restraining Order to imply legality.

This is misleading.

TROs are routinely denied when : the issue becomes moot the auction has already been scheduled the case is dismissed while the motion is pending the judge prefers a full evidentiary hearing A TRO denial is NOT a ruling that no stay violation occurred.

It simply means immediate injunctive relief was not granted.

It has zero bearing on whether Prizm broke federal law and the docket reflects that the court reviewed the filing, motions, and timeline because the stay DID exist.

________________________________________ 4. PRIZMS CREDIT REPORTING IS NOW UNDER FEDERAL REVIEW.

Any reporting of : repossession charge-off deficiency delinquency after my XX/XX/XXXX filing date violates : FCRA 607 ( b ) ( reasonable procedures ) FCRA 611 ( failure to correct after dispute ) FCRA 623 ( a ) ( 1 ) ( A ) ( furnishing inaccurate data ) Your attorneys statement that Prizm will review its credit reporting is a written admission that the information furnished may have been unlawful.

I have filed my FTC Identity Theft Report ( FTC Report XXXX XXXX XXXXXXXX ) and all furnishers are now obligated under 15 U.S.C. 1681c-2 to block any information connected to identity theft, inaccurate reporting, or accounts created/handled during periods of compromised identity or bankruptcy confusion.

________________________________________ 5. PRIZMS RATIONALE IS FACTUALLY FALSE AND LEGALLY UNSUSTAINABLE.

Your counsels response attempted to misrepresent and distort : the meaning of dismissed with prejudice the meaning of time-barred refiling the legal effect of a petition timestamp the nature of stay violations the role of TRO proceedings the statutory requirements of 362 ( a ) and 362 ( k ) Whether a filing is ultimately dismissed, barred, or procedurally imperfect is irrelevant to whether a federal stay was in effect when you acted.

You acted while the stay was active.

You retained property while the stay was active.

You sold property after the stay violation began.

You continued collection activity during a pending Chapter 13 case.

These are independent federal violations, each triggering statutory remedies.

________________________________________ 6. FORMAL DEMANDS I hereby demand : 1. Written acknowledgment of the XX/XX/XXXX stay violation ( per 362 ( k ) ) 2. Immediate deletion of ALL negative credit reporting FCRA 607 ( b ), 611, 623 ( a ) 3. Copy of ALL repossession records, logs, timestamps, and communications Required for federal review.

4. Statement of indemnification & remediation for damages incurred due to unlawful repossession and retention.

5. Written explanation of why the vehicle was not immediately returned after filing notice was provided.

________________________________________ 7. NOTICE OF ESCALATION This matter is now being escalated to : CFPB Enforcement Division Texas Attorney General Consumer Protection United States Trustee Program Federal Bankruptcy Court for the Southern District of Texas FTC ( via Report No. 193680000 ) Prizm Financial, Premier Adjusters, and their counsel will be held accountable for : knowingly misleading a federal agency misrepresenting bankruptcy law violating federal stay protections retaining estate property unlawfully unlawful credit reporting failure to mitigate damages and any additional misconduct determined during review ________________________________________ 8. NOTICE TO PRESERVE EVIDENCE You are instructed to preserve all : call logs emails repossession contracts tow truck dispatch times internal notices notes referencing the bankruptcy communications with Premier Adjusters sale documentation data furnished to credit bureaus and attorney memos or billing records connected to this matter Spoliation will be reported immediately.

________________________________________ CONCLUSION Your response attempted to paint me as uninformed.

I assure you : I am not. 
Your actions on XX/XX/year> and the weeks following were in direct violation of federal bankruptcy law, FCRA reporting requirements, and consumer protection statutes. This rebuttal is being formally added to my CFPB file and will be submitted to all relevant federal authorities.

I expect a complete written response within 10 business days. 
Respectfully, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation