Consumer complaint received 2025-05-08 00:00:00
Product: Debt collection — Other debt
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: Business Processing Solutions, LLC
State: FL

Complaint narrative:
In XXXX, XXXX, while investigating an unrelated financial matter with the Treasury Department, I was made aware of a possible debt in my name that was delinquent and had been sent to an undisclosed credit recovery company for collections. Treasury had my old business address which I had sold ( retired ) approximately three ( 3 ) years ago so I supplied my current address and asked for a Proof of Debt Letter. I was not aware of the debt and did not have any information with which to investigate. Approximately five ( 5 ) weeks later I received a letter from XXXX XXXX XXXX XXXX with some of the debt information. 

I immediately called Pioneer to discuss the matter and learned that the debt was related to a Pandemic era CARES Act loan from several years ago while I owned the business. Pioneer said that they had received the account for collections in XXXX, XXXX and they immediately sent a letter to the address provided by the Treasury Department which had apparently been supplied to them by the XXXX XXXX XXXX XXXX XXXX. This address was apparently my old business address. I did not receive any letter at that time. 

Pioneer apparently also called my phone as well as my husbands after receiving the debt for collections. As I mentioned, I was not aware of any debt, collections, or outstanding bills at that time. That, combined with the pervasive amount of telephone related scams and fraud, I was obviously not inclined to engage anyone calling on the phone asking for money. 

While talking with Pioneer, I realized that the debt had grown significantly because of penalties, interest and administrative costs imposed by the creditor. These costs were growing daily. I asked the Pioneer representative if they had done any basic investigative research to determine my current mailing or physical address. He told me that they do not do that, they only use the information provided by Treasury. I explained to him that if they had spent {$28.00} using a top rated commercially available online public records search tool they would have had my current mailing address in about 15 minutes, along with all my past addresses and a number of relatives including my husband. I know this because I did it. I was not hiding. I said that if I had received the notification letter in XXXX, XXXX it would have saved me thousands of dollars in additional fees. He simply said we dont do that. 

The reason Im filing this complaint is because I dont know if collections companies are legally required to conduct due diligence and make reasonable investigative efforts to locate and notify a consumer of their outstanding debt or if they are allowed to use as little effort as possible potentially causing the debt amount to increase which results in more harm to the consumer and more revenue for the collections company and the creditor. If it is required, I am asking that Pioneer Credit Recovery Company be cited or penalized for the violation.

In the best case, this behavior and practice is apathetic and unethical. In the worst case, it borderlines on deception and fraud for financial gain. I did not see anything relating to this type of issue in the Fair Debt Collection Practices Act. Im hoping I just missed it, but if not, it needs to be included. Im certain there are many people who arent necessarily aware of an outstanding debt and the sooner they are legitimately and properly notified the quicker the matter is resolved while avoiding the potential of additional harm to the consumer. Online background and public records search tools are efficient, inexpensive, and easily accessible. There is no reason not to mandate their use. Ultimately it would benefit all involved in this unfortunate process.

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