Consumer complaint received 2026-01-21 00:00:00
Product: Debt collection — I do not know
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Sarma
State: TX

Complaint narrative:
This is my XXXX  complaint against SARMA Collections , Inc., and it is being submitted strictly for record-keeping, regulatory tracking, and consumer awareness purposes. I have consulted legal counsel and am no longer seeking informal resolution. This complaint documents XXXX  own admissions and continued noncompliance with federal consumer protection laws. 
SARMA has now admitted in multiple written responses that : They did not have a verified consumer address on file. 
They relied solely on information provided by the original creditor. 
They did not possess itemized documentation at the time they reported the account. 
They only recently requested an initial notice letter after I filed complaints. 
They ultimately closed all accounts and withdrew from handling my information. 
Despite these admissions, SARMA reported the account to credit bureaus and attempted collection activity without providing legally required written notice or validation. My first written validation request was sent in XXXX, well over XXXX  days ago. SARMA did not request documentation from the original creditor until XXXX, after multiple complaints had already been filed. This alone demonstrates failure to comply with FDCPA 1692g ( a ) and 1692g ( b ).

Under federal law, SARMA was required to : Send written notice within XXXX  days of initial communication.

Cease all collection activity until validation was provided.

Conduct a reasonable investigation before furnishing or continuing to furnish data. 
Credit reporting is a form of collection activity. SARMA continued to report while admitting it lacked documentation. That conduct violates : FDCPA 1692g ( a ) and 1692g ( b ) failure of notice and failure to cease collection FCRA 1681s-2 ( b ) failure to conduct reasonable investigation FCRA 1681e ( b ) failure to maintain maximum possible accuracy XXXXXXXX XXXX  reporting standards furnishing unverifiable data XXXX  own response confirms that it could not substantiate the debt and therefore closed all accounts. Closing the account does not cure the violations that occurred prior. It confirms the account was reported, disputed, and withdrawn without lawful validation.

Statutory damages for FDCPA violations may reach {$1000.00} per action, in addition to attorney fees and actual damages. FCRA violations may allow recovery for negligent or willful noncompliance. XXXX  pattern of delay, lack of documentation, and post-complaint withdrawal demonstrates systemic non-compliance rather than clerical error. 
This complaint is submitted solely so that regulators and future consumers can see XXXX  pattern of reporting first and validating later which is unlawful. 
I am not requesting further correspondence from SARMA. I have consulted counsel and will determine next steps privately. This complaint is for record preservation, regulatory tracking, and public consumer awareness only. 
I respectfully request CFPB to retain this complaint as part of SARMA XXXX, XXXX documented compliance history and to notify me of any enforcement actions, investigations, or class actions involving this company, as I would like to remain informed.

Company response to consumer: Closed with explanation