Consumer complaint received 2025-11-27 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Zions Debt Holdings
State: TX

Complaint narrative:
I am submitting this detailed statement to the Consumer Financial Protection Bureau regarding the collection and reporting activity of Zions Debt Holdings in connection with an alleged XXXX XXXX  account. I want to clearly and firmly state at the beginning of this explanation that I do not have any account with XXXX XXXX  I have never opened, authorized, or used any XXXX XXXX XXXX  and I have never had any business relationship with Zions Debt Holdings. The debt they are reporting and attempting to collect is not mine, and I am not responsible for any amount they claim is owed. 

To further support this, I have filed a formal FTC Identity Theft Report, documenting that any account associated with XXXX XXXX and subsequently transferred or sold to Zions Debt Holdings is fraudulent, unauthorized, and the result of identity misuse or erroneous attribution. At no point in my life have I opened an account with XXXX XXXX, agreed to any utility services with them, or provided any authorization that would allow an account to be created in my name. Therefore, the alleged balance Zions Debt Holdings is attempting to collect is not valid. 

The issue began when I discovered an account that Zions Debt Holdings claimed to have purchased from XXXX XXXX. They stated that the balance owed was approximately {$1500.00} and that they were willing to settle for a reduced amount if paid by a certain date. When I saw this information, I was immediately concerned because I knew for a fact that I had never opened a XXXX XXXX account. I had no record of ever receiving service from them, no service activation notices, no billing statements, no contract documentation, no emails, and no correspondence that would indicate any relationship whatsoever with XXXX XXXX. 

Because of this, I immediately recognized that something was wrong. It appeared that either the account was created fraudulently under my name or that there was a serious administrative error that linked my identity to an account that was never mine. Because the situation was clearly fraudulent in nature, I took the appropriate legal step of filing an FTC Identity Theft Report. Filing this report is not something I did casually ; it is a sworn legal document submitted under penalty of perjury, acknowledging that the account in question was not opened by me and that I did not authorize any services or charges associated with it. 

After filing the FTC report, I began contacting involved parties to notify them of the fraudulent activity. One of the parties I reached out to was Zions Debt Holdings, because they were attempting to collect on the account. When Zions Debt Holdings responded, their communication contained troubling statements. They claimed that they purchased my XXXX XXXX account and referenced a specific account number connected to the alleged balance. They also claimed that they had sent validation previously and that they were willing to settle the debt for a reduced amount if I paid by a certain date. They further stated that they would delete the account from the credit bureaus if I settled the debt. 

This type of response is problematic for several reasons. First, offering a settlement is not validation. A settlement offer is not proof that I owe the debt ; it is merely an attempt to collect. Second, Zions Debt Holdings never provided any documentation proving the account belongs to me. They did not provide : A signed contract A service application A utility agreement Proof of identity verification Billing statements Service activation records Address-verification forms Copies of identification allegedly used Phone or email communications Any legitimate documentation linking me to XXXX XXXX In other words, Zions Debt Holdings did not supply any form of verification required under federal law. They simply made assertions, none of which prove I am the correct consumer.

The fact that Zions Debt Holdings claimed that validation was previously sent is concerning because I never received anything that resembled legal validation, nor have they provided proof that such validation exists. If such proof did exist, it would be easy to supply : a signed agreement, a contract, or identity authentication. Instead, what they provided was an offer to settlea tactic often used to pressure consumers into paying debts they do not owe. 

Because I do not own the account, and because Zions Debt Holdings has failed to provide any documentation, the account they are reporting is inaccurate. Under the Fair Debt Collection Practices Act ( FDCPA ), a collector must provide validation when a consumer disputes a debt. Under the Fair Credit Reporting Act ( FCRA ), furnishers must report only accurate and verifiable information. Zions Debt Holdings has failed to meet both standards. 

In addition, the fact that they purchased the account from XXXX XXXX does not relieve them of their obligation to verify that the underlying debt is legitimate. Debt buyers frequently purchase large portfolios of charged-off accounts, often with very limited documentation. However, federal law requires them to verify any account they attempt to collect. 

In this case, they have not verified anything. 

Once I realized that Zions Debt Holdings was reporting this account to the credit bureaus, the matter became even more serious. Reporting an account that is not mineand that I have formally declared as fraudulent through the FTCcauses real harm to my credit profile. A negative or derogatory item on a credit report can : Lower a consumers credit score Harm loan eligibility Affect housing opportunities Increase insurance premiums Raise interest rates on future credit Affect employment opportunities where credit checks are required Damage overall financial stability In essence, inaccurate reporting has significant consequences, and in my case, those consequences are being imposed based on an account that is not mine at all.

When I notified Zions Debt Holdings that the account was fraudulent, I expected them to follow lawful procedures. That includes ceasing collection activity, blocking the account under the identity theft provisions of the FCRA, and stopping all reporting until verification is produced. Instead, they continued to assert ownership of the account and offered settlement terms, which is inconsistent with proper handling of identity theft disputes. 

When a company receives an FTC Identity Theft Report, the law is very clear : They must block the account, stop reporting, and cease collection unless they can provide definitive evidence proving the consumer is responsible. Not only did Zions Debt Holdings not provide such evidence, but they continued to act as if the account was legitimate. 

Nothing in their response addressed the fact that I never had a XXXX XXXX account. They did not provide dates of service, billing cycles, or any connection to my identity. The alleged balance that they claim I owemore than $ XXXX not correspond to anything I have ever authorized. 

In addition, XXXX XXXX is a company I have never interacted with. I have never signed up for energy services with them, never received electricity or gas service from them, never enrolled in any utility program offered by them, and never even had contact with them. There is no legitimate or logical reason why my name should appear on a XXXX XXXX account, which further confirms that the account is fraudulent. 

In cases of identity theft or misattributed accounts, it is common for a debt buyer like Zions Debt Holdings to mistakenly believe that they have purchased a legitimate account. However, once a consumer disputes the account and provides evidence of identity theft, the responsibility shifts entirely to the collector to validate the debt or cease collection. Zions Debt Holdings did neither. 

Instead, they offered to settle. 

Offering to settle a fraudulent debt is not acceptable. It is not validation. It is not verification. It is not compliance. It is an attempt to pressure a consumer into paying something they do not owe.

In summary, what happened is as follows : A fraudulent XXXX XXXX account was created using my identity without my knowledge or authorization. 

XXXX  XXXX failed to verify the account and transferred or sold it to Zions Debt Holdings. 

Zions Debt Holdings began collection efforts and reported the debt to the credit bureaus. 

I discovered the account and immediately recognized it as fraudulent. 

I notified Zions Debt Holdings that the account was not mine. 

I filed an FTC Identity Theft Report to formally document the fraud. 

I never received proper validation from Zions Debt Holdings. 

Zions Debt Holdings continued collection attempts despite my dispute and FTC filing. 

The account continues to harm my credit and is inaccurately attributed to me. 

Because of all these factors, the account is illegitimate, unverified, and fraudulent. 

I am requesting CFPB intervention to ensure that Zions Debt Holdings : Removes the account from all credit reporting agencies Ceases all collection efforts Complies fully with the FTC Identity Theft Report Stops sharing or selling the account Provides written confirmation of deletion Acknowledges that they can not validate the account Notifies XXXX XXXX and any third parties that the account is fraudulent This account is not mine, and I do not owe any debt to XXXX XXXX or Zions Debt Holdings. I have taken all necessary stepsincluding filing an FTC reportto demonstrate the fraudulent nature of the account. I am now requesting the CFPBs assistance to ensure that Zions Debt Holdings corrects its reporting and complies with federal law.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation