Consumer complaint received 2024-12-24 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: CL Holdings LLC
State: TX

Complaint narrative:
I am filing a formal complaint regarding an account reported by Jefferson Capital Systems on my credit report. This item contains multiple inaccuracies, lacks validation, and violates federal laws. Additionally, I am unaware of this debt, and it is fraudulent. I request a thorough investigation and immediate deletion of this account from my credit file. Validation of this debt has been requested previously, and Jefferson Capital Systems has failed to provide such validation. Therefore, I am requesting deletion, not further validation. Unawareness of Debt and Possible Fraud I hav
e no knowledge of this debt, and it is being reported fraudulently. Jefferson Capital Systems has failed to provide evidence of my association with this account, including any signed agreement, contract, or documentation linking me to this debt. 

Reporting a potentially fraudulent account without adequate validation violates the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681e ( b ), which requires credit reporting agencies to ensure maximum accuracy of reported information.

Failure to Notify or Validate Debt I was not informed of this debt or its origination. No notification was received regarding this debt prior to its appearance on my credit report, which violates the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g ( a ).

Previous requests for validation were ignored by Jefferson Capital Systems, violating 15 U.S.C. 1692g ( b ), which requires debt collectors to validate disputed debts before continuing collection activities. This account remains unvalidated despite prior requests, making its continued reporting unlawful.

Inaccurate and Misleading Comments The account is listed as an Open Account, but the payment status is marked as Late 120 Days and a Collection Account, which is inconsistent and misleading.

This failure to accurately describe the account violates 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ), which requires furnishers to ensure accuracy and integrity in the information they report.

Incorrect and Incomplete Reporting The balance listed is {$3600.00}, yet no documentation supporting this amount has been provided.

The Monthly Payment is listed as {$0.00} for an open account, which is inconsistent with the reported account type.

The reporting of this account violates 15 U.S.C. 1681s-2 ( a ) ( 2 ), which mandates timely correction of incomplete or inaccurate information.

Reporting to Only One Bureau This account is reported solely to Equifax and not to other credit bureaus, raising concerns of unfair or discriminatory reporting practices in violation of 15 U.S.C. 1681 ( a ) ( 1 ).

No Issuance of IRS Form 1099-C As this account is marked as a Collection Account, Jefferson Capital Systems is required to issue an IRS Form 1099-C for discharged debts over {$600.00} under 26 U.S.C. 6050P. This has not occurred, indicating potential non-compliance with federal tax laws.

Violations of Applicable Laws and Codes Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681c ( a ) ( 4 ) : Prohibits reporting adverse information older than seven years.

15 U.S.C. 1681i ( a ) : Requires prompt and reasonable investigation of disputes.

15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Mandates accurate and complete information reporting.

15 U.S.C. 1681s-2 ( a ) ( 2 ) : Requires timely corrections of inaccuracies.

15 U.S.C. 1681e ( b ) : Requires credit reporting agencies to ensure maximum accuracy.

Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692g ( a ) : Requires debt collectors to notify consumers of their rights within five days of first contact.

15 U.S.C. 1692g ( b ) : Prohibits continued collection efforts until debt validation is provided.

Internal Revenue Code ( IRC ) 26 U.S.C. 6050P : Requires creditors to issue a 1099-C form for discharged debts exceeding {$600.00}.

Consumer Financial Protection Act ( CFPA ) 12 U.S.C. 5531 : Prohibits unfair, deceptive, or abusive acts or practices ( UDAAP ).

I demand the immediate removal of this account from all credit reports due to its violations of federal laws. Validation has been previously requested, and Jefferson Capital Systems has failed to comply. Therefore, I request deletion, not further validation.

I request the CFPB investigate Jefferson Capital Systems for its reporting practices and potential violations of FCRA, FDCPA, IRC, and CFPA.

If this account is not promptly removed, I will pursue legal action for damages caused by these violations under the laws mentioned above.

This matter has caused significant harm to my financial standing and creditworthiness. I trust the CFPB will act swiftly to ensure compliance and accountability. Failure to delete this account will leave me no choice but to take legal action.

Company response to consumer: Closed with explanation