Consumer complaint received 2025-10-21 00:00:00
Product: Debt collection — Payday loan debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: Sarma
State: TX

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXXXXXX Email : XXXX Phone : ( XXXX ) XXXX Date : XX/XX/XXXX To : Sarma Collections , Inc . 
Attn : Compliance Department XXXX XXXX XXXX XXXX, XXXX XXXX XXXXXXXX XXXX XXXXXXXX Cc : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX Cc : National Credit Union Administration ( NCUA ) Consumer Assistance Center XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX Subject : Formal Notice of Inaccurate Reporting and Post-Settlement Violation of FDCPA and FCRA Dear Compliance Officer, I am writing to formally notify Sarma Collections , Inc. and XXXX XXXX XXXX XXXX XXXX XXXX ) of inaccurate and unlawful credit reporting activity concerning the settled account originally issued by XXXX and serviced by your office under account number XXXX. 

On XX/XX/XXXX, I received a written letter from your company confirming that the referenced debt was pending upon settled in full and that, once payment cleared, your office would report the settlement to XXXX for correction with all credit bureaus. Payment was completed, and no further amounts are owed. 

Despite this, XXXX  continues to report the same XXXX  account as Charged Off/ {$2600.00} past due as of XX/XX/XXXX, following its reinvestigation. This constitutes : A false or misleading representation of the legal status of a debt in violation of 15 U.S.C. 1692e ( 2 ) ( A ) of the Fair Debt Collection Practices Act ( FDCPA ).

A failure to report accurate and complete information as required under 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) of the Fair Credit Reporting Act ( FCRA ).

A violation of FCRA 623 ( b ) failure to correct inaccurate information after notice of dispute.

Requested Action I hereby demand that Sarma Collections , IncXXXX and XXXX : Immediately notify all consumer reporting agencies ( XXXX XXXX XXXX ) that the account was settled in full. 
Update the trade line to reflect Settled / Paid in Full / {$0.00} Balance and remove all charge-off or past-due language. 
Provide written confirmation to me and the NCUA within 15 business days of receipt of this letter that the correction has been submitted to the bureaus. 
Cease any further furnishing of inaccurate data to any credit reporting agency. 


Please be advised that failure to comply within the statutory period may result in a formal complaint being escalated to the Consumer Financial Protection Bureau ( CFPB ) and potential civil action under 15 U.S.C. 1692k and 15 U.S.C. 1681n. 

I have enclosed copies of : The XX/XX/XXXX Settlement-in-Full Letter issued by Sarma Collections , Inc . 
The XXXX reinvestigation report ( XX/XX/XXXX ) showing the account still listed as charged off. 
The most recent credit report ( XX/XX/XXXX ) confirming the continued inaccuracy. 


Thank you for your immediate attention to this matter. Please confirm receipt and provide a written update on corrective action taken. 


Sincerely, XXXX XXXX XXXX XXXX : XX/XX/XXXX Email : XXXX Phone : ( XXXX ) XXXX

Company response to consumer: Closed with explanation