Consumer complaint received 2024-12-23 00:00:00
Product: Checking or savings account — Checking account
Issue: Opening an account — Confusing or missing disclosures
Company: Early Warning Services, LLC
State: TX

Complaint narrative:
Letter sent to Consumer Services Department/ Chief Executive Officer Early Warning Services LLC Due to the fact that they created a jointer between a nonprofit and the individuals that signed for the nonprofit. The nonprofit is an entity all its own and the signers are not the owners and never can be the owners because of the IRS laws. They should not create joinders for entities that are nonprofits. It should not, in any way, shape, or form affect the personal reco

rds of the Signees. This led to the call for : Immediate Cease and Desist - Violations of Federal Banking Regulations, Consumer Protection Laws, and IRS Requirements Regarding 501 ( c ) ( 3 ) Organization Dear Consumer Services Departm
ent : This letter serves as formal notice of multiple violations committed by Early Warning Services LLC ( " EWS '' ) regarding the unauthorized collection and dissemination of XXXX XXXX 's financial information. As documented through direct communication with XXXX XXXX XXXX  ( " XXXX '' ) on XX/XX/year> at approximately XXXX XXXX. Your organization operates under a contract to collect and distribute our banking information to various financial institutions. This activity occurs without our knowledge, consent, or authorization, in direct violation of federal and state laws.

Organizational Authority and Structure : President : XXXX XXXX XXXX XXXX : XXXX XXXX XXXX XXXX, XXXX Both officers serve as authorized signers on organizational accounts, operating exclusively in official capacities for XXXX XXXX, a registered 501 ( c ) ( 3 ) nonprofit organization.

Documented Violations : 1. Federal Trade Commission Act Violations ( 15 U.S.C. 41-58 ) : - Direct violation of Section 5 through unfair and deceptive acts affecting commerce - Misrepresentation of EWS 's authority to collect and distribute financial information - Unauthorized extension of XXXX XXXX  XXXX contractual relationship to include our organizational data - Creation of unauthorized credit reporting mechanisms outside the scope of the Fair Credit Reporting Act 2. Consumer Financial Protection Bureau ( CFPB ) Violations : - Direct violation of the Consumer Financial Protection Act, 12 U.S.C. 5531 ( a ) - Failure to provide mandated disclosures under Regulation P ( 12 CFR 1016 ) - Violation of the CFPB 's Privacy of Consumer Financial Information rule - Unauthorized sharing of protected financial information under 12 CFR 1016.10 3. Texas State Law Violations : - Multiple violations of the Texas Deceptive Trade Practices Act ( Texas Business and Commerce Code, XXXX XXXX ) - Direct violation of Section 17.46 ( b ) through false, misleading, and deceptive business practices- Violation of Texas Finance Code 391.002 regarding unauthorized credit reporting - Breach of Texas Privacy Protection Act requirements 4. IRS Regulatory Violations : Your actions directly violate the following IRS regulations and requirements : a ) Private Benefit/Private Inurement Doctrine Violations ( IRC 501 ( c ) ( 3 ) ) : - Creation of prohibited private benefit connections through unauthorized personal-organizational account linkage - Direct violation of Treasury Regulation 1.501 ( c ) ( 3 ) -1 ( c ) ( 2 ) - Establishment of improper personal benefit relationships prohibited under Revenue Ruling 76-206 - Creation of unauthorized financial connections violating IRS Private Letter Ruling 200435020 b ) Separate Entity Doctrine Violations ( Treasury Regulation 1.501 ( c ) ( 3 ) -1 ) : - Direct breach of organizational-personal separation requirements- Violation of corporate veil protections established under Treasury Decision 8736 - Unauthorized commingling of personal-organizational financial reporting - Breach of IRS Publication 557 requirements regarding organizational independence c ) Organizational Test Requirement Violations ( Treasury Regulation 1.501 ( c ) ( 3 ) -1 ( b ) ) : - Compromise of our organizational structure through unauthorized financial reporting - Direct violation of operational test requirements under Revenue Procedure 2018-15 - Creation of prohibited personal liability connections- Violation of IRS Form 1023 representations regarding organizational structure d ) Recordkeeping Requirement Violations ( Revenue Procedure 2021-5 ) : - Creation of unauthorized hybrid personal-organizational financial records - Violation of required separation standards under Revenue Ruling 2019-47 - Compromise of mandatory record segregation requirements- Direct violation of IRS Record Retention Requirements ( Rev. Proc. 2021-5 ) Legal Impact on Our Organization : Your actions create immediate and substantial legal exposure for Solel International by : 1. Compromising our tax-exempt status through unauthorized personal-organizational financial connections 2. Creating improper liability channels between organizational and personal finances 3. Violating mandatory IRS structural requirements for 501 ( c ) ( 3 ) organizations 4. Establishing unauthorized credit reporting mechanisms that violate nonprofit privacy protections 5. Creating false associations between organizational accounts and personal financial histories

Company response to consumer: Closed with explanation