Consumer complaint received 2025-08-14 00:00:00
Product: Debt collection — I do not know
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Credit Counsel, Inc.
State: FL

Complaint narrative:
A. Summary of the Issue : Credit Counsel has violated multiple provisions of the Fair Debt Collection Practices Act ( FDCPA ) and Florida Consumer Collection Practices Act by failing to provide adequate debt validation, omitting required disclosures and continuing collection activities without proper legal authority. The debt collector 's response to a formal validation request was wholly inadequate and failed to meet federal and state legal requirements. 

B. Detailed Background and Timeline of Events : XX/XX/XXXX : I held an event at XXXXXXXX XXXX XXXX  and was required to make all payments in advance of the event in accordance with the contract I entered into with them. 

XX/XX/XXXX : Credit Counsel began collection activities and reported an alleged debt of {$1400.00} to one or more credit reporting agencies wherein they were listed as the Original Creditor. 

XX/XX/XXXX : I sent a comprehensive debt validation letter to Credit Counsel , Inc. via certified mail, requesting validation of the alleged debt of {$1400.00}. The letter specifically requested : Proof of my responsibility for the debt including original signed contract ; Name and address of original creditor ; Verification of debt amount with itemized breakdown ; Proof of collection agency 's Florida licensing and collection authority ; and Documentation of complete chain of ownership from original creditor. 

XX/XX/XXXX : XXXX XXXX at Credit Counsel sent me an email indicating that the amount of the alleged debt was now {$1700.00}. 

XX/XX/XXXX : Instead of providing proper validation as required by the FDCPA, XXXX XXXX at Credit Counsel responded by sending a copy of their Phase-Two Collection Assignment Form dated XX/XX/XXXX ( Assignment Form ) listing XXXX XXXX  as the Original Creditor, along with event planning documents from XXXX XXXX as their purported " validation response '' without any cover letter, explanation or documentation establishing their legal authority to collect the debt. They also failed to provide a detailed breakdown of the alleged debt or explain the discrepancy between the amount reported to the credit reporting agencies of {$1400.00} and the amount of {$1100.00} listed in the Assignment Form. Instead, there is only a handwritten, illegible notation on the Assignment Form. 

XXXX XXXX, XXXX XXXX at Credit Counsel sent me an email indicating that the amount of the alleged debt was now {$1700.00}. 

Based on the information contained in the Assignment Form, XXXX XXXX alleges that there was an additional bar charge of {$1100.00} that could not be processed on my credit card. This charge was not itemized in my original contract with XXXX XXXX. There is also no date or name on the receipt that they provided as evidence of the alleged debt of {$1100.00} so it is impossible to tell when this charge was incurred and by whom. The information provided by Credit Counsel and XXXX XXXX therefore does not substantiate that I am responsible for the alleged debt of {$1100.00} and I dispute this debt in its entirety. Furthermore, I was required to pay all charges for my event in advance and it appears that this claim did not arise until months after my event had ended and all invoices had been paid in full. 

Ongoing : Credit Counsel , Inc. has continued collection activities and credit reporting without providing adequate validation as required by law.

C. Specific Allegations : Violation 1 : Failure to Provide Initial Written Notice ( 15 U.S.C. 1692g ( a ) ) Credit Counsel Inc. failed to provide me with a written notice containing the information required by 1692g ( a ) within five days of its initial communication to me. The initial communication appears to have been the reporting of the alleged debt to credit bureaus in XX/XX/XXXX. This is a clear violation of the FDCPAs requirement to provide written notice containing mandatory disclosures at the outset of collection activities. 

Violation 2 : Inadequate Debt Validation ( 15 U.S.C. 1692g ( b ) ) Credit Counsel failed to provide proper verification of the debt when requested to do so and specifically failed to : Establish their legal authority to collect this specific debt ; Provide documentation of debt purchase or assignment ; Provide proof of my responsibility for this debt ; Explain the discrepancy between XXXX XXXX 's balance ( {$1100.00} ) and claimed debt amount ( {$1400.00} ) ; and Include any assignment agreements or chain of ownership documentation. 

Violation 3 : Failure to Provide Required Disclosures ( 15 U.S.C. 1692g ( a ) ) Credit Counsel 's response to my debt validation request completely omitted the mandatory dispute rights notice required by federal law, including : The 30-day dispute period ; Right to request verification if disputed ; Consequences of not disputing within 30 days ; and Statement that debt will be assumed valid if not disputed.

Violation 4 : Continued Collection During Validation Period ( 15 U.S.C. 1692g ( b ) ) Credit Counsel , Inc. violated the cessation requirement by continuing collection activities after receiving the validation request without providing adequate validation.

Violation 5 : False or Misleading Representations ( 15 U.S.C. 1692e ) The significant discrepancy between the alleged original balance of {$1100.00}, the alleged debt amount of {$1400.00} reported to the credit reporting agencies and the subsequent amount of {$1700.00} demanded by Credit Counsel without explanation or breakdown constitutes misleading representation of the debt amount under 15 U.S.C. 1692e ( 2 ) ( A ).

Violation 6 : Unfair Collection Practices ( 15 U.S.C. 1692f ) Attempting to collect a debt without demonstrating legal authority to do so constitutes an unfair practice under 15 U.S.C. 1692f ( 1 ). Furthermore, by listing themselves as the Original Creditor on my credit report, Credit Counsel engaged in deceptive practices under 15 U.S.C. 1692e ( 14 ).

Violation 7 : False Credit Reporting ( 15 U.S.C. 1692e ( 8 ) Credit Counsel reported the opening date of the account to the credit reporting agencies as XX/XX/XXXX. This is inaccurate, as the event to which the alleged debt relates occurred in XX/XX/XXXX. This false reporting unfairly extends the seven-year period this derogatory mark will remain on my credit report and constitutes communicating credit information which is known or should be known to be false, in violation of 15 U.S.C. 1692e ( 8 ).

Violation 8 : Collecting an Unauthorized Amount ( 15 U.S.C. 1692f ( 1 ) Credit Counsel is attempting to collect an amount, including fees and charges, that is not expressly authorized by the agreement with the original creditor or otherwise permitted by law. No contract has been provided that establishes my liability for the alleged debt. Attempting to collect such an amount is a violation of 15 U.S.C. 1692f ( 1 ).

Florida Law Violations : Florida Consumer Collection Practices Act, Fla. Stat. ch. 559 : Fla. Stat. 559.72 : Failure to provide proof of Florida licensing as specifically requested ; and Fla. Stat. 559.715 : Requiring a debtor to provide proof of a disputed debt, when the burden of proof rests with the creditor.

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