Consumer complaint received 2026-03-09 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: Zions Debt Holdings
State: FL

Complaint narrative:
RE : False Debt Claim XXXX Account Created Fraudulently by Squatters XXXX XXXX and XXXX XXXX To the Compliance Officer or Legal Department : I am writing to formally dispute a false debt claim that your company is attempting to collect against me, XXXX XXXX, regarding a XXXX account. I have XXXX liability for this debt. This account was created fraudulently around XXXX by XXXX XXXX and XXXX XXXX '' squatting '' aka who were unlawfully occupying property belonging to me. FACTUAL BACKGROUND XXXX. Fraudulent Creation of Account : During or around XXXX, individuals identified as XXXX XXXX and XXXX XXXX, who were unlawfully squatting on my property, opened a XXXX account using my personal information without my knowledge, authorization, or consent. These individuals had no legal right to bind me to any contract. XXXX. XXXXXXXX XXXX Acknowledgment of Fraud : On XX/XX/XXXX ( exhibit attached ), after direct telecommunications between myself and XXXX, the company acknowledged the fraudulent nature of this account. XXXX representatives confirmed that the account was created without my authorization and agreed to remove the debt and cease any further collection efforts. At that time, XXXX removed the " deputy '' or collections representative handling the matter, indicating the matter was resolved. XXXX. Sale to Zion Debt Holdings ( " Zion Holdings '' ) : Despite XXXX 's explicit acknowledgment of fraud and its commitment to redress the matter, XXXX apparently ignored its own determination and wrongfully sold this fraudulent debt to Zion Holdings. This transfer was improper and invalid, as the underlying debt was procured through identity theft and was already disputed and acknowledged as fraudulent by the original creditor. LEGAL AUTHORITY AND FEDERAL PRECEDENT My position is supported by recent federal enforcement actions : XXXX. FTC XXXX XXXX XXXX XXXX XXXX XXXX ( XXXXXXXX XXXX XXXXXXXX has been the subject of a major Federal Trade Commission enforcement action for precisely this conduct. The FTC alleged that XXXX 's sales representatives obtained financing for unqualified customers by using the credit history of unrelated third parties or adding cosigners without permissionexactly what happened in my case. The FTC complaint alleged that when customers who qualified through these deceptive tactics defaulted on their loans, XXXX referred the unrelated third party to debt collectors, potentially harming that consumer 's credit. After hearing from these debt collectors, some affected consumers reported to the FTC that they were victims of identity theft. 2. FTC Settlement and Consumer Redress In XX/XX/XXXX, XXXX agreed to pay {$20.00} XXXX to settle these allegationsa {$15.00} XXXX civil penalty and {$5.00} XXXX to compensate injured consumers. The FTC specifically stated that people who found XXXX listed on their credit reports, or who were contacted by debt collectors for a purchase they didn't make, may be eligible for compensation. As of XX/XX/XXXX, the FTC began distributing nearly {$500000.00} to victims of XXXX 's fraudulent accounts. This demonstrates that the federal government has investigated and confirmed that XXXX 's practices resulted in widespread identity theft affecting consumers nationwide. XXXX. XXXX 's Ongoing Pattern of Conduct The FTC also alleged that XXXX violated the " Red Flags Rule '' under the Fair Credit Reporting Act by failing to implement an identity theft prevention program. Class action litigation has further documented XXXX 's pattern of creating fraudulent accounts. The company has admitted that sales representatives forged signatures or allowed others to forge them on contracts. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX was acquired by XXXX XXXX for {$5.00} XXXX. XXXX inherited federal oversight of XXXX, including the FTC settlement obligations. Any claims relating to XXXX 's fraudulent accounts remain valid against the company and its successors. VIOLATION OF FAIR DEBT COLLECTION PRACTICES ACT Zion Holdings is attempting to collect on a debt that : Was created through identity theft by third parties Was acknowledged as fraudulent by the original creditor ( XXXX XXXX Was subject to removal by XXXX following my direct communication with them Should never have been sold to any debt buyer Under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq., you are required to validate this debt and cease collection activities when presented with evidence of identity theft. I am providing you with notice that this debt is the result of fraud. DEMAND FOR IMMEDIATE ACTION I demand that Zion Holdings : XXXX. CEASE AND DESIST all collection activities against me immediately. XXXX. PERMANENTLY DELETE this account from your records and remove any and all references to this debt from my credit profile with all credit reporting agencies ( XXXX XXXX XXXX XXXX. XXXX. PROVIDE WRITTEN CONFIRMATION within XXXX days that this debt has been extinguished and that you have notified any credit reporting agencies of its fraudulent nature. XXXX. CEASE FURTHER TRANSFER OR SALE of this fraudulent debt to any other party. I also demand that you identify the source from which you obtained this debt and provide all documentation showing the chain of custody from XXXX to XXXX XXXX. POTENTIAL LIABILITY Please be advised that if you continue collection efforts on this known fraudulent debt, you will be in violation of the FDCPA and may be subject to liability for actual damages, statutory damages up to {$1000.00}, and attorney 's fees. Additionally, the FTC 's ongoing enforcement against XXXX-related debt collection practices places you on notice that this debt is presumptively invalid. CONCLUSION I am an innocent victim of identity theft. XXXX acknowledged this fact on XX/XX/XXXX and committed to removing the debt, exhibit attached. Their subsequent sale of this fraudulent account to Zion Holdings does not transform a fraudulent debt into a valid one. I trust this matter will be resolved promptly. Please direct all correspondence to me in writing at the email address : XXXX. Sincerely, XXXX XXXX

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation