Consumer complaint received 2024-12-11 00:00:00
Product: Debt collection — Private student loan debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: LCS FINANCIAL SERVICES CORPORATION
State: AZ

Complaint narrative:
Dear CFPB Please see attached I am writing to formally address my ongoing concerns regarding the settlement of my private loans originally held by XXXX XXXX XXXX  and subsequently claimed to have been purchased by LCS Financial. Despite the documentation provided and the details outlined below, my concerns remain

unresolved. I want to clarify that I am not confused, as you previously suggested, nor is this matter attributable to COVID-related disruptions. I had two private loans with XXXX XXXX XXXX, which LCS Financial allegedly purchased. The account numbers are as follows : XXXX XXXX Account # XXXX : Original balance {$20000.00}, settled for {$10000.00}. 
XXXX XXXX Account # XXXX : Original balance {$4000.00}, settled for {$1500.00} Key Violations by LCS Financial Fair Debt Collection Practices Act ( FDCPA ) 1. False or Misleading Representations o Law : Under 15 U.S. Code 1692e, debt collectors can not use false, deceptive, or misleading representations to collect a debt.

o Violation : If LCS Financial claimed the debts were settled with XXXX XXXX but failed to do so, this constitutes a violation.

2. Failure to Validate Debt o Law : Under 15 U.S. Code 1692g, debt collectors must validate a debt upon request, including providing proof of settlement.

o Violation : Despite my request, LCS Financial has failed to provide proof that the accounts were settled with XXXX XXXX XXXX. 

3. Unfair Practices o Law : 15 U.S. Code 1692f prohibits using unfair or unconscionable means to collect a debt.

o Violation : Collecting {$11000.00} without properly settling the accounts with XXXX XXXX XXXX  is unfair and unconscionable.

Fair Credit Reporting Act ( FCRA ) 1. Failure to Verify Debt or Provide Documentation o Law : Under 15 U.S. Code 1681s-2 ( a ) ( 1 ) ( B ), furnishers must provide accurate and verifiable information to credit reporting agencies ( CRAs ).

o Violation : If LCS Financial reported inaccurate information to the CRAs without proof of settlement, this violates FCRA requirements.

2. Failure to Respond to a Dispute o Law : Under 15 U.S. Code 1681s-2 ( b ), furnishers must investigate disputes and verify accuracy within 30 days.

o Violation : If LCS Financial failed to properly respond to my dispute, this is a breach of FCRA obligations.

3. Reporting Inaccurate Information o Law : 15 U.S. Code 1681s-2 ( a ) ( 1 ) ( A ) prohibits knowingly furnishing inaccurate information to CRAs.

o Violation : If LCS Financial falsely reported these accounts as settled when they werent, this violates FCRA provisions.

4. Willful Non-Compliance o Law : Under 15 U.S. Code 1681n, willful non-compliance with FCRA can result in liability for damages.

o Violation : If LCS Financial knowingly mishandled these accounts or refused to comply, this constitutes willful non-compliance.

Additional Context I understand that XXXX XXXX transferred my federal loans to XXXX, which is now my federal loan servicer. However, this matter pertains exclusively to my private loans with XXXX XXXX XXXX, allegedly purchased and settled by LCS Financial. XXXX XXXX, XXXX XXXX XXXX. 

Actions Requested 1. Provide Documentation o Proof of settlement with XXXX XXXX XXXX  for both accounts, including any agreements or correspondence confirming that XXXX XXXX acknowledged the settlement. 
o A letter from XXXXXXXX XXXX XXXX confirming receipt of settlement funds from LCS Financial.

2. Regulatory Reporting o If LCS Financial can not provide proof of the settlement, I request a full refund of the {$11000.00} collected.

Thank you for your immediate attention to this matter. I look forward to your response and resolution within a reasonable timeframe. 

Sincerely, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation