Consumer complaint received 2025-11-14 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: MO

Complaint narrative:
I am filing this complaint because the collection account being reported by FCO ( Fair Collections & Outsourcing ) is inaccurate, unverified, incomplete, and being furnished in violation of the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ). The account they are reporting is listed as a derogatory collection account for {$340.00}, but I have never received any validation of the debt, any original creditor documentation, any breakdown of the amount, or any proof that FCO owns the debt or has the legal authority to collect or report it. Despite multiple disputes and validation requests submitted through the credit bureaus and directly to FCO, no legally required documentation has ever been produced. Instead, FCO continues furnishing the account as if it is accurate and validated, which is unlawful and has caused significant harm to my credit profile.

What has happened is a complete breakdown in the validation, verification, and reinvestigation processes required under federal law. FCO is reporting an account without evidence, refusing to validate it, and continuing to communicate derogatory information to the credit reporting agencies without meeting their legal obligations. Because of this, the tradeline is factually unverified, procedurally defective, and legally non-compliant.

1. How I Discovered the Problem While reviewing my consumer credit reports, I noticed a collection/charge-off account being reported by FCO in the amount of {$340.00}, marked as a derogatory collection account and appearing on all three major credit bureaus. This account was alarming because : I did not recognize the alleged debt, I had never been contacted by FCO prior to seeing it on my report, I had never received a validation notice as required by law, and No documentation supported the existence of the debt.

The reporting of this account immediately damaged my credit score and caused significant concern, especially because no prior notice, validation, or communication was ever provided by FCO.

2. Actions I Took After Discovering the FCO Account A. Disputes Submitted to the Credit Bureaus Upon seeing the account, I filed formal disputes with all three credit bureaus. In each dispute, I clearly explained that : I did not recognize the debt, I had never been notified of the debt, I had never received validation from FCO, The account appeared inaccurate, The amount appeared arbitrary and unexplained, and FCO had not provided any documentation supporting their claim.

B. Bureau Verification Without Evidence Despite these detailed disputes, each credit bureau returned the same automated conclusion : The furnisher has verified the information as accurate.

However : No documentation was provided to me.

No method of verification was supplied.

No proof of investigation was shared.

No explanation of how FCO verified the information was included.

Each reinvestigation was completed in a matter of days, suggesting that the bureaus relied solely on automated e-OSCAR responses from FCO rather than reviewing any documentary evidence.

3. Attempts to Validate the Debt Directly with FCO Because the bureaus did not supply any validation, I contacted FCO directly. According to FDCPA 809 ( b ), a debt collector must provide validation when requested and must cease all collection and reporting activity until validation is provided.

In my direct requests, I asked for : The name of the original creditor, A copy of the original signed contract or account application, A complete breakdown of the {$340.00} balance, Proof of ownership or assignment, The date the debt was allegedly incurred, The date the debt was allegedly acquired by FCO, Documentation showing I was notified of the debt, Any records demonstrating that this debt is legally owed.

FCO did not respond with any validation materials whatsoever.

They did not : Confirm the original creditor, Produce any contract, Provide any itemization of the amount, Show assignment or ownership documents, Provide billing statements, Provide payment history, Demonstrate that the debt is even mine.

Instead, the account remained unchanged on all three credit bureaus.

4. Violations of Federal Consumer Protection Laws FCOs actions ( and inactions ) violate several provisions of federal law : A. FDCPA 809 ( b ) Failure to Validate Under FDCPA 809 ( b ), when a consumer requests validation, a collector must : Cease all collection activity, Cease furnishing information to credit bureaus, Provide validation of the debt, Provide documentation confirming its legitimacy and ownership.

FCO did none of these.

The company continued reporting the account and did not validate it.

B. FDCPA 807 False or Misleading Representations FCO is reporting information as if : The debt is verified, The debt is accurate, The debt is owed, They have the authority to collect and report it.

However, without documentation, FCO can not claim any of these statements are true. Furnishing unverified information is a violation of 807 ( 8 ), which prohibits communicating false credit information.

C. FCRA 623 ( a ) ( 3 ) Furnisher Duty to Investigate When a consumer disputes an account, the furnisher must : Conduct a reasonable investigation, Review all available records, Provide accurate results to the bureaus.

But FCO did not conduct a reasonable investigation because : They never reviewed or provided documentation, They simply confirmed the dispute electronically without producing evidence, They returned an unverifiable verified response through e-OSCAR.

This violates their duty under FCRA.

D. FCRA 607 ( b ) Maximum Possible Accuracy Furnishers must ensure the accuracy and integrity of the information they report. This includes ensuring : Accuracy of the data, Accuracy of identity, Accuracy of the amount, Accuracy of ownership, Accuracy of reporting status.

Without validation documents, no data furnished by FCO can be considered accurate.

E. FCRA 611 ( a ) Bureau Reinvestigation Requirements The credit bureaus must also conduct a reasonable investigation. However, each bureau : Relied solely on FCOs automated response, Did not review any documentation, Ignored that the furnisher had not validated the debt, Provided a conclusion without evidence.

This results in a flawed reinvestigation process and inaccurate reporting.

5. Harm Caused by FCOs Reporting The inaccurate and unvalidated reporting of the FCO account has caused : Credit score drops, Denial of credit applications, Higher interest rates, Increased insurance premiums, Lost financial opportunities, Emotional distress, Time and resources spent correcting an unlawfully reported account.

The harm is ongoing and continues as long as the tradeline is reported.

6. Why the FCO Account Is Unverifiable Based on the evidence ( or lack thereof ), the FCO account is unverifiable because : FCO never provided an original contract, FCO never provided assignment documentation, FCO never identified the original creditor, FCO never provided itemization of charges, FCO never provided any proof the debt belongs to me, FCO never demonstrated they have legal authority to collect or report it.

Debt buyers often purchase bulk debt portfolios with incomplete records. Without documentation, this account is wholly unverifiable and should not be reported.

7. Systemic Issues with FCOs Reporting Practices The practices displayed by FCO mirror systemic issues highlighted by the CFPB, including : Relying on incomplete records, Failing to validate debts, Reporting unverified information, Responding to disputes using only e-OSCAR codes, Not reviewing documentation, Not ceasing collection after a validation request, Providing inaccurate or misleading data to bureaus.

This is consistent with known compliance problems in the debt-buying and debt-collection industry.

8. Why CFPB Intervention Is Necessary Because neither FCO nor the credit bureaus have complied with federal law, CFPB intervention is the only way to ensure : Proper reinvestigation, Proper documentation, Proper correction or deletion of the account, Compliance with consumer protection statutes, Prevention of further reporting harm.

I have exhausted all other avenues.

9. What I Am Requesting as a Fair Resolution The fair resolution I am requesting is simple, reasonable, and fully consistent with federal law : 1. Immediate deletion of the FCO account from all credit bureaus.

Because the account has never been validated, it is required to be removed.

2. Confirmation from FCO that : They have deleted the account, They acknowledge the debt is unvalidated, They will cease all collection activity, They will not sell, transfer, or reassign the account.

3. Confirmation from all credit bureaus that : The FCO account has been deleted, All associated derogatory marks have been removed, No automated or partial verification will be used for reinsertion.

4. Reissuance of corrected reports to any lenders who recently pulled my file.

5. Assurance that the account will not be reinserted without : Full validation documentation, Written notice to me within 5 business days, Compliance with FCRA 611 ( a ) ( 5 ) ( B ).

6. Investigation into FCOs furnishing practices to ensure compliance with FDCPA and FCRA regulations.

10. Conclusion In conclusion, the FCO account is inaccurate, unverifiable, and unlawfully reported. FCO has not validated the debt, has ignored multiple validation requests, and has continued furnishing derogatory information in violation of federal law. The credit bureaus have failed to conduct meaningful reinvestigations, relying instead on automated responses.

Because the debt remains unvalidated and unsubstantiated, the only fair and lawful resolution is for the account to be fully deleted from all consumer credit reports, followed by written confirmation from both FCO and the credit bureaus.

I respectfully request that the Consumer Financial Protection Bureau intervene to ensure compliance, protect my rights under federal law, and restore the accuracy and integrity of my consumer credit files.

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