Consumer complaint received 2026-04-24 00:00:00
Product: Debt collection — Telecommunications debt
Issue: Took or threatened to take negative or legal action — Collected or attempted to collect exempt funds
Company: CL Holdings LLC
State: NY

Complaint narrative:
CONSUMER FINANCIAL PROTECTION BUREAU ( CFPB ) COMPLAINT Consumer : XXXX XXXX XXXX Location : XXXX, NY Subject Entities : Jefferson Capital Systems , LLC ; XXXX XXXX XXXX ; XXXX XXXX Issue : Unlawful Debt Collection Practices ( FDCPA ), Inaccurate Credit Reporting ( FCRA ), and Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ). Complaint Narrative : I am filing this formal complaint against XXXX XXXX, XXXX XXXX XXXX, and Jefferson Capital Systems for systemic violations of the Fair Debt Collection Practices Act ( 15 U.S.C. 1692g ( b ) and 1692e ( 2 ) ( A ) ), the Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. based on 623 ( a ) ( 3 ) ), and UDAAP regulations. I am a 100 % Disabled American Veteran protected under federal consumer guidelines, and my sole sources of income are Veterans Affairs compensation, Social Security Disability Insurance, and a municipal disability retirement pension. These funds are strictly exempt from garnishment. The continued harassment and collection efforts by these entities against a consumer with entirely protected income constitute predatory financial abuse. On XX/XX/XXXX, XXXX XXXX offered a promotional XXXX XXXX XXXX upgrade in exchange for an XXXX XXXX XXXX trade-in. Following an unresolvable billing dispute regarding unhonored promotional terms, service was disconnected on XX/XX/XXXX. XXXX subsequently revoked the XXXX promotional credits and assessed an unverified balloon balance of {$910.00}. In XX/XX/XXXX, XXXX third-party collector, XXXX XXXX XXXX XXXX XXXX to collect this debt. On XX/XX/XXXX and XX/XX/XXXX, I transmitted formal Notices of Dispute demanding strict legal validation. XXXX responded on XX/XX/XXXX, with an internally generated XXXX invoice but explicitly failed to provide a signed contractual agreement validating the debt. I formally rejected this on XX/XX/XXXX, demanding file closure. Rather than curing this defect, the unverified account was transferred to Jefferson Capital Systems ( XXXX ). On XX/XX/XXXX, XXXX opened collection accounts reporting conflicting and irreconcilable balances of {$1000.00} and {$140.00} to the major credit bureaus, constituting willful FCRA violations. I recently exhausted my administrative remedies by engaging XXXX XXXX XXXX. They explicitly refused to remove the charges, citing their " XXXX XXXX XXXX '' and relying solely on Invoice # XXXX as proof of " services rendered. '' They continue to mask unverified equipment charges as service fees and refuse to produce a legally binding consumer contract. NEW YORK XXXX XXXX OF THE ATTORNEY GENERAL COMPLAINT Consumer : XXXX XXXX XXXX Location : XXXX, NY Subject Entities : XXXX XXXX ; Jefferson Capital Systems , LLC Issue : Deceptive Trade Practices ( XXXX XXXX ), XXXX XXXX, and Predatory Debt Collection Complaint Narrative : I am submitting this complaint to the Consumer Frauds and Protection Bureau regarding a pattern of deceptive trade practices by XXXX XXXX and unlawful debt collection by Jefferson Capital Systems. I have thoroughly documented these violations of New York State General Business Law Section 349. Furthermore, my income consists entirely of VA disability, SSDI, and a municipal disability retirement pension. Pursuing unverified debt collection against a consumer whose income is entirely judgment-proof and statutorily exempt demonstrates the predatory nature of these entities. This dispute echoes the findings of the XX/XX/XXXX multistate settlement secured by your office against XXXX regarding deceptive wireless promotions. On XX/XX/XXXX, XXXX offered me a " free '' XXXX XXXX XXXX in exchange for an XXXX XXXX XXXX trade-in. When XXXX failed to honor the promotional terms, a billing dispute ensued, leading to service disconnection on XX/XX/XXXX. Upon disconnection, XXXX assessed a retaliatory balloon balance of {$910.00}. XXXX Executive Relations recently admitted they are treating this entire amount as a charge for " services rendered and used, '' citing Invoice # XXXX. It is mathematically and factually impossible to incur nearly {$1000.00} in standard service charges over a period of weeks. XXXX is unlawfully masking the cost of unverified equipment or hidden penalties under the guise of service fees. Furthermore, when challenged via formal dispute in XX/XX/XXXX, their collection agency failed to produce a signed, binding consumer contract validating this financial obligation. Despite lacking contractual standing, XXXX allowed Jefferson Capital Systems to open multiple collection accounts against me on XX/XX/XXXX, reporting fabricated and conflicting balances of {$1000.00} and {$140.00} to major credit bureaus. XXXX is actively stonewalling, resting their defense on internal invoices rather than signed agreements, and deflecting liability to third-party debt buyers who are actively defaming my consumer credit profile.

Company response to consumer: Closed with explanation