Consumer complaint received 2025-03-18 00:00:00
Product: Debt collection — Rental debt
Issue: False statements or representation — Impersonated attorney, law enforcement, or government official
Company: Financial Management Solutions, LLC
State: MD

Complaint narrative:
Your company responded to complaint ID XXXX and obviously did not read the attached letter so here 's the full complaint. Additionally, a attorney should not be involved in debt collection practices per 15 USC 1692e. Please take your time to read the complaint to understand that the debt was in fact purchased by Financial Management Solutions whom I was already in contact with before your firm. Which I requested you to explain the relationship between your company and FMS. 

Full complaint : I am writing to follow up on correspondence I received from your Company regarding an alleged debt that appears to originate from a rental agreement XXXX XXXX, XXXX according to your company. I write to formally dispute this debt and to also question your authority to collect it. I will be referencing the Uniform Commercial Code ( UCC ) which is a set of federal laws that govern all business transactions in the United States, the Fair Credit Reporting Act ( FCRA ) ( 15 USC 1681 ), the Fair Debt Collection Practices Act ( FDCPA ) ( 15 USC 1692 ) and Gramm-Leach-Bliley Act ( GLBA ) ( 15USC 6801-6809 ) First, I must note that I have already been in communication with another entity, Financial Management Solutions , LLC ( FMS ) , who is also a debt collector who claims to collect on what appears to be the same debt. The simultaneous involvement of two different agencies for the same alleged obligation has caused significant confusion as to who legitimately owns the debt; considering your company or FMS has never clarified the relationship between your offices. 

Additionally, I do not think its a coincidence that I received this letter after sending FMS a Noice of Intent to Take Legal Action. Your companys use of the name XXXX XXXX XXXX XXXX XXXX XXXX suggest attorney involvement in debt collection. Considering in your letter you stated the XXXX XXXX XXXX XXXX XXXX XXXX is a debt collector, you are already in violation of FDCPA 1692e, for misrepresenting that communication is from an attorney and using false and deceptive means to collect a debt. 

Moreover, upon reviewing the original lease agreement, I see no explicit provision granting any party the right to reassign or transfer debts arising from that lease, including XXXX XXXX, XXXX. The absence of an assignment clause raises doubts about whether the debt could have been lawfully transferred to either of your offices. 

Your company does not now or ever, has the right to report anything to the consumer reporting agencies. Your company states that youre trying to collect a debt but does not mention that your company purchased these accounts at all. Assuming you did, Under UCC Article 3, a holder in due course acquires certain immunities from defenses that might otherwise be raised. However, because you purchased a defaulted/charged-off account, you had notice it was overdue at the time of purchase. This disqualifies you from holder-in-due-course status under UCC 3-302 ( a ) ( 2 ) and makes your Company simply an Ordinary Holder. Without this status, you are subject to all defenses I may assert, per UCC 3-305 ( a ) ( 2 ). Therefore, your purchase does not automatically give you incontestable rights. 

I am first asserting contractual defenses, whereas stated the original lease agreement never included any provisions that gave any party the right to reassign or transfer debts arising from the lease. Gramm-Leach-Bliley Act, 15 U.S. Code 6802, states that any institution can not share my private information ( which is included in the Account and the Agreement ) with non-affiliated third parties unless it has first given me a proper notice. I am concerned about possible violations of identity theft statutes ( such as 18 U.S.C. 1028A ) if my personal information was acquired and used without my explicit consent. Please explain how your office obtained my data, including any identifying details, and identify the lawful basis for your firms use of it in attempting to collect, report, or communicate about this alleged debt. 

Please provide documentation of a valid assignment or purchase agreement showing your legal authority to collect, along with proof that the original creditor complied with federal privacy requirements, including those under the Gramm-Leach-Bliley Act ( 15 U.S.C. XXXX ). If my personal information was shared or sold without providing me proper notice or an opportunity to opt out, it may constitute a violation of federal privacy laws.

This letter serves as a formal cease-and-desist notice. You are hereby prohibited from engaging in any further collection activitiesincluding phone calls, letters, or credit reportinguntil you provide the requested documentation proving your legal authority to collect this debt. Any continued attempts to collect without proper validation may be considered a willful violation of federal law. 

I am however allowing a response within 30 days of receiving this letter communicating that you received my letter and are understanding of the terms provided to avoid further action. I trust you will handle this matter with urgency and provide the requested response promptly. If not, I am prepared to take legal action against both your company and Financial Management Solutions , LLC. Thank you for your time and cooperation, and I look forward to a satisfactory resolution.

Company response to consumer: Closed with explanation