Consumer complaint received 2025-12-01 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Prosper Marketplace, Inc.
State: TX

Complaint narrative:
XXXXDetailed Complaint: Dispute of Debt Origination, Inaccurate Reporting, and Improper Sale by XXXX XXXX XXXXAs a Texas resident (XXXX XXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX), I am filing this formal complaint and investigation request against XXXX XXXX XXXX (original creditor) regarding an alleged $XXXX debt originated via Prosper Marketplace, Inc. (Account #XXXX). This debt was charged off on XXXX XXXX XXXX, and sold to XXXX XXXX XXXX on XXXX XXXX XXXX, leading to systematic violations by XXXX and XXXX XXXX XXXX XXXX. (their servicer). XXXX failure to provide proper notification of the sale, validate the debt upon request, and ensure accurate credit reporting has enabled ongoing harm, including a XXXX point credit score drop and emotional distress. I have documented XXXX days of issues (as of XXXX XXXX XXXX) and notified multiple agencies for coordinated enforcement: CFPB (pending submission today), FTC (#XXXX, filed prior to XXXX XXXX XXXX, for deceptive practices), Texas AG (#XXXX, filed XXXX XXXX XXXX, for state violations), FCC (#XXXX, filed XXXX XXXX XXXX, for unauthorized texts), and credit bureaus (disputes filed XXXX XXXX for inaccurate reporting). Please reference these for cross-agency collaboration.XXXXChronological Timeline and Key Events (Supported by Evidence):XXXX XXXX XXXX: Debt allegedly originated with XXXX via XXXX. I dispute the validity due to lack of signed agreement and potential statute of limitations issues (Texas Civil Practice & Remedies Code  16.004, 4-year SOL for written contracts).XXXX XXXX XXXX: XXXX charged off the debt at $XXXX. No notice provided to me of charge-off or intent to sell.XXXX XXXX XXXX: XXXX sold the debt to XXXX XXXX XXXX without authenticated notification to me, as required by Texas Business & Commerce Code  9.406 (account debtor must receive notice of assignment to be obligated to pay assignee). I received no bill of sale, chain of custody, or proof of transfer.XXXX XXXX XXXX: XXXX (XXXX XXXX) sent a "Welcome!" letter initiating collection, but provided no original XXXX documents.XXXX XXXX XXXX: I emailed XXXX a cease and desist demand (with XXXX  attachments, including legal citations), revoking consent and demanding validation: original signed agreement from Coastal, payment history, notarized bill of sale, and chain of custody. CC\'d CFPB, XXXX XXXX, and credit bureaus to notify of disputes.XXXX XXXX XXXX XXXX XXXX XXXX: XXXX sent XXXX inadequate form letters with no XXXX originals (e.g., only self-generated summaries), obviously failing FDCPA  1692g(b) validation requirements (per XXXX XXXX XXXX XXXX XXXX XXXX, 9th Cir. XXXX: must provide independent creditor docs). I followed up with certified mail (XXXX XXXX, tracking #XXXX XXXX XXXX XXXX XXXX XXXX, received XXXX XXXX; XXXX XXXX to affiliate, tracking #XXXX XXXX XXXX XXXX XXXX XXXX, received XXXX XXXX), including a notarized affidavit (XXXX XXXX, by XXXX XXXX, ID XXXX) swearing to violations.XXXX XXXX XXXX XXXX XXXX XXXX: XXXX flagged the debt as "collection" on my XXXX report (alert XXXX XXXX; full report XXXX XXXX shows XXXX past due, "C Collection" status, "Data Unavailable" history), without validation or investigation. This is ongoing inaccurate furnishing traceable to XXXX original reporting.XXXX XXXX XXXX (Ongoing): XXXX website (XXXX, screenshots attached) continues deceptive practices, such as XXXX-page Terms & Conditions (effective XXXX) with buried, overly broad TCPA consent for texts to any "associated numbers" (violates XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX: requires express opt-in), and Privacy Policy (effective XXXX) falsely claiming "financial institution" status to evade GLBA  6802 privacy rules (they\'re debt collectors). XXXX sale enabled this.\nObvious Violations by XXXX (Tied to Laws and Evidence):XXXXFailure to Notify of Assignment (Texas Business & Commerce Code  9.406): Obvious breachno authenticated notice of XXXX XXXX sale to XXXX, preventing me from discharging the obligation properly. Evidence: No documents received; my XXXX XXXX demand ignored.\nInaccurate Credit Reporting (FCRA  1681s-2(a)(1)(A) and (b)): Obvious failure to ensure accurate information post-sale; XXXX report shows unvalidated debt, with no reasonable investigation (per XXXX v. Trans Union Corp., 3rd Cir. XXXX: furnishers must verify disputes). Evidence: XXXX XXXX report; my XXXX XXXX bureau disputes.XXXXAiding FDCPA/Regulation F Violations (Indirect via Sale): Sale without validation docs enabled Resurgent\'s 6 validation failures ( 1692g(b)) and improper communications ( 1006.34(c)). Evidence: Resurgent letters lacking Coastal originalsXXXXTexas-Specific Issues: Potential SOL misrepresentation (Civil Practice & Remedies Code  16.004) and deceptive trade practices (DTPA  17.46(b)(12)) by selling without disclosure. Evidence: Charge-off XXXX XXXX XXXX; no XXXX response to demandsXXXXEvidence Summary (Attached): Prosper statement (XXXX XXXX XXXX); XXXX letters/texts/emails; XXXX certified receipts; notarized affidavit; XXXX report/alert; Resurgent website screenshots (XXXX XXXX XXXX); agency confirmations.\n\nRegulatory Coordination: I\'ve informed CFPB, FTC, Texas AG, FCC, and bureaus of these issues, with numbers for reference. Please coordinate to investigate XXXX role in enabling systemic harm (estimated XXXX consumers affected).\n\nDesired Resolution: Immediately provide original signed agreement, full payment history, notarized bill of sale, and chain of custody; delete the tradeline from XXXX, XXXX, and XXXX with written confirmation within XXXX days; pay $XXXX compensation ($XXXX statutory/actual damages for FCRA/Texas violations, $XXXX punitive for willful inaction, $XXXX for credit harm/distress); investigate the sale and any origination errors; cease aiding XXXX violations; and provide restitution if broader patterns found. This restores my credit (damaged XXXX points) and prevents further harm.XXXXI am available for further details and swear under penalty of perjury that this is accurate.'

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