Consumer complaint received 2025-05-11 00:00:00
Product: Debt collection — Credit card debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Harpeth Financial Services, LLC
State: TN

Complaint narrative:
This letter serves as a formal dispute regarding the inaccurate, misleading, and unlawful reporting of my account by Bounce AI. Upon a thorough review the original loan agreement with Advance Financial and the recent complaint response from Bounce AI, I have identified multiple critical discrepancies that violate the Fair Credit Reporting Act ( FCRA ), the Truth in Lending Act ( TILA ), and Tennessee XXXX XXXX. 

Summary of Violations and Discrepancies : XXXX Credit Limit Violation : According to my original Flex Loan Plan Disclosure and Account Agreement with Advance Financial , the initial credit limit for this account was {$3800.00}. 
However, XXXX XXXX is currently reporting a charge-off principal balance of {$3500.00} and a total current balance of {$6600.00}, which significantly exceeds the original credit limit, even when accounting for accrued interest and fees. 
This overstatement of the principal balance directly violates the terms of the original agreement and misrepresents my true financial obligation. 
XXXX. Excessive and Improper Fees : The original agreement specifies an APR of 279.50 % with a periodic interest rate of 24 % per annum, plus a customary fee of 0.7 % per day on the average daily principal balance. 
Bounce AI claims a charge-off interest balance of {$270.00} and a charge-off fees balance of {$2900.00}, totaling {$3100.00} in added costs, without providing the required itemization or accurate calculation under the stated interest terms. 
These excessive charges are both arbitrary and significantly inflated, lacking the transparency required under XXXX and FCRA. 
XXXX. Illegal Customary Fee Charges Post-Default : Definition of Default : According to the original loan agreement, a borrower is considered in default if they fail to make the minimum payment due. 
The complaint response from Bounce AI confirms that my last payment was made on XX/XX/year>, which means the account was in default immediately after the first missed minimum payment following this date. 
Despite this, Bounce AI has continued to charge customary fees beyond the default date, which is a direct violation of Tennessee law. 
Tennessee XXXX Violation : XXXX XXXX XXXX XXXX XXXX XXXX, once an account is in default, no further customary fees may be assessed. Charging these fees post-default is illegal and exposes Bounce AI to significant financial and legal liability. 
XXXX. Misapplication of Payments : The original agreement requires that payments be applied first to unpaid interest, then to fees, and finally to principal. 
There is no clear breakdown in the complaint response to demonstrate that payments were correctly allocated, further complicating the accuracy of the reported balance. 
XXXX. Unsubstantiated Balance Increase : The current balance of {$6600.00} reported by XXXX XXXX suggests a substantial and unexplained increase over the initial principal, raising serious concerns about the accuracy of their accounting practices. 
This balance is inconsistent with the original credit limit and interest calculation methods specified in the agreement, indicating potential accounting errors or improper fee assessments. 
XXXX. Violation of Billing Rights : Under the original agreement, I have the right to dispute billing errors and demand clear itemization of charges. 
Bounce AI has failed to provide a transparent accounting of how this balance was calculated, violating my rights as a consumer under the FCRA and XXXX. 

Requested Resolution : Given these significant discrepancies and legal violations, I demand the following actions : Immediate removal of this account from my credit report due to inaccurate, misleading, and unlawful reporting.

Company response to consumer: Closed with explanation