Consumer complaint received 2026-04-26 00:00:00
Product: Debt collection — Rental debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: CO

Complaint narrative:
I am submitting this complaint regarding a collection account reported by XXXX XXXX that I believe was improperly assessed, unjustly escalated, and inaccurately reported to the credit bureaus. In 2023, my family and I were required to terminate our lease approximately three months early due to an emergency relocation. We promptly notified XXXX XXXX of our circumstances and made every effort to fulfill our obligations in good faith. We paid the remaining rent owed for the lease term in full, with the understanding that this would satisfy our financial responsibility under the lease. Following this payment, XXXX XXXX asserted that additional amounts were owed. These included early termination fees, continued utility obligations through the end of the lease period, and the retention of our full security deposit. These additional charges were not reasonably justified, particularly given that the property was left in excellent condition upon our departure. We made five separate attempts to resolve this matter directly with XXXX XXXX. Each attempt was made in good faith with the intention of reaching a fair and reasonable resolution. However, rather than engaging constructively, XXXX XXXX consistently responded with demands for immediate payment and threats of referral to collections. No meaningful effort was made to address our concerns or pursue a reasonable resolution. Despite our prior payment of the remaining rent and our ongoing dispute, the account was ultimately placed into collections. At that point, I formally disputed the validity of the debt. After several months without resolution and continued negative impact to my credit, I felt compelled to engage with the collection agency in order to mitigate further financial harm. While the collection agency agreed to reduce the alleged balance, they declined to remove the negative tradeline from my credit report. I paid the reduced amount under protest and solely to protect my credit standing. This payment should not be interpreted as an acknowledgment of the validity of the debt. This negative reporting has had a significant financial impact on both my spouse and me. We have consistently maintained strong credit histories and have always met our financial obligations. However, this derogatory account has directly affected the terms of major financial transactions, including vehicle financing and a recent home refinance. We were advised that, absent this account, we would have qualified for substantially more favorable rates. Additionally, I have received official communication indicating that XXXX XXXX was subject to enforcement action by the Federal Trade Commission for deceptive practices, including misleading renters, imposing undisclosed or unjustified charges, and improperly withholding funds. My experience appears consistent with the conduct identified in that action. Based on these circumstances, I believe : The charges imposed by Invitation Homes were excessive and not reasonably justified The referral of this account to collections was improper given the payments made and the ongoing dispute The continued reporting of this account as a collection is inaccurate and materially misleading I was effectively compelled to pay a disputed and improperly assessed debt in order to protect my financial standing

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