Consumer complaint received 2025-11-23 00:00:00
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Seized or attempted to seize your property
Company: Fundo LLC
State: NV

Complaint narrative:
Subject : Complaint Against Fundo, LLC for Illegal Collection Practices, Improper XXXX XXXX, Refusal to Validate Debt, Misrepresentation of Federal Law, and Pattern of Consumer Harm I am submitting a formal complaint against Fundo, LLC regarding an alleged Merchant Cash Advance that they claim I owe personally. XXXX has engaged in unlawful and deceptive practices, threatened improper asset XXXX, refused to validate the debt, misrepresented federal law, and demonstrated a pattern of behavior that appears to violate multiple federal consumer protection statutes, including the FTC Act, CFPB UDAAP standards, FDCPA, FCRA, and UCC Article 9.

I formally disputed this alleged debt with Fundo, LLC and requested validation. Instead of complying with UCC Article 9 and federal law, XXXX contacted or claimed to contact multiple third-party payment processors to secure assets, including XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX and XXXX. These actions were taken while the debt was in active dispute, without providing any validation. This constitutes improper third-party disclosure, coercion, and deceptive enforcement. 

XXXX provided only two documents : a copy of a contract and a copy of a UCC financing statement. They refused to provide any of the documents legally required for validation, including the original signed security agreement, the itemized accounting ledger, proof of default, a complete payment ledger, Article 9-210 accounting, Article 9-611 notices, Article 9-613 notices, or any evidence that a legally enforceable security interest exists. They stated in writing that they are not required to provide anything further. This is incorrect under state and federal law. 

XXXX has repeatedly claimed that the FDCPA does not apply because the contract is labeled a business-to-business Merchant Cash Advance. However, courts consistently hold that debt collection statutes apply based on conduct directed at an individual, not how a contract is labeled. Relevant cases include XXXX XXXX XXXX XXXX XXXX Supreme Court ), XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, XXXX v. XXXX XXXX, and XXXX XXXX XXXX XXXX XXXX XXXX XXXX used my personal legal name, personal identifiers, and personal accounts in their collection efforts. Their attempt to avoid compliance by labeling the obligation business-to-business is a misrepresentation of federal law. 

The misuse of XXXX filings is especially concerning. Consumers from multiple states, including Nevada, have reported that XXXX filed improper liens. XXXX Nevada consumer successfully challenged a similar Fundo XXXX with the Nevada XXXXXXXX XXXX XXXX after the state determined the XXXX had no merit. This indicates a broader pattern of filing XXXX liens without a valid security interest, a practice regulators should review closely. 

Public records also show XXXX XXXX XXXX has accumulated a significant pattern of complaints. In the past XXXX years, XXXX complaints were filed with the Better Business Bureau, with XXXX of those in the last XXXX months alone. The complaints consistently allege failure to validate debts, arbitrary and inflated fees, unauthorized debits, threats of asset XXXX, contact with unrelated accounts, continued ACH debits after revocation, and the filing of improper liens. Several consumers allege XXXX attempted to debit protected federal benefits. Many complaints describe XXXX tactics as harassment, coercion, and deceptive practices. 

CFPB complaints also show recurring issues. Complaint IDs XXXX and XXXX ( XXXX ) involve allegations of fraudulent activity, refusal to validate debts, and excessive fees. Consumers report that XXXX responds to CFPB inquiries with generic explanations, which do not address the core issues. Some consumers describe Fundo LLC as scamming people since they opened. Other complaint references indicate cases ending in XXXX and XXXX, where consumers turned to CFPB after XXXX refused validation and added improper fees. 

XXXX 's corporate structure also raises concerns. The company is legally XXXX, XXXX, managed by XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX created in XXXX as a special purpose vehicle. The managing XXXX, XXXX XXXX, was previously named in a federal CFPB lawsuit in XXXX for illegal debt relief practices, resulting in a stipulated judgment. This background is relevant because the same individual now manages XXXX, which is engaging in similar questionable financial practices. 

Additionally, in XX/XX/XXXX, a federal bankruptcy adversary proceeding was filed against Fundo, LLC ( Welch v. Fundo LLC, Adv. No. XXXX ) XXXXn the U.S. Bankruptcy Court for the Middle District of Florida , seeking recovery of money or property from XXXX. This indicates another legal challenge concerning the validity of XXXX financial practices. 

XXXX written communications to me contained explicit threats to seize assets if I did not comply with their settlement deadlines. They also stated that their last email would be final, despite the ongoing dispute and their legal obligation to validate the alleged debt. Their refusal to validate, combined with coercive language and misrepresentation of law, is evidence of unlawful collection conduct. 

Requested CFPB Action : XXXX Fundo LLC to validate the alleged debt by producing all legally required documentation, including the original signed security agreement, complete accounting ledger, and UCC Article 9 notices.

Require Fundo LLC to cease all enforcement activity and third-party processor contact until validation is completed. 

Investigate XXXX LLCs widespread pattern of coercive and deceptive practices, including the misuse of XXXX filings, unauthorized debits, inflated fees, and threats of asset XXXX. 

Require Fundo LLC to retract any improper or unvalidated contacts made with processors regarding my accounts. 

Evaluate whether XXXX 's practices constitute Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) under federal law. 

Investigate whether XXXX corporate affiliates ( FL XXXX XXXX, FUNDO SPV XXXX XXXX ) are being used to shield or transfer obligations related to improper practices. 

Review XXXX 's pattern of consumer harm, including the substantial volume of BBB and CFPB complaints alleging similar violations. 

Take any enforcement action appropriate to protect consumers. 

I request a written explanation of the investigations outcome and confirmation that all collection and enforcement activity by Fundo LLC remains suspended pending review.

Company response to consumer: Closed with explanation