Consumer complaint received 2025-11-14 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: CL Holdings LLC
State: MO

Complaint narrative:
I am filing this complaint because the account being reported by Jefferson Capital Systems is inaccurate, unverifiable, and has not been properly validated despite multiple written disputes submitted to the credit reporting agencies and directly to the furnisher. The account appears on my credit report as a collection/charge-off with an alleged past-due balance of approximately {$2500.00}. The reporting appears to show that the account was acquired or placed with Jefferson Capital Systems sometime after the original creditor charged it off. However, the information presented on my credit reports does not match any documentation I have ever received, and Jefferson Capital has not provided any proof that the debt is valid, that they have the legal right to report it, or that any of the information they are furnishing is accurate. 

Because of the substantial negative impact this reporting has had on my credit profile, and because none of the required documents have been produced after multiple dispute attempts, I believe that Jefferson Capital Systems has failed to comply with its obligations under the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ). This narrative outlines in detail what happened, the actions I took, the actions ( or lack of actions ) taken by Jefferson Capital and the credit bureaus, the inaccuracies and inconsistencies in the reporting, and the harm that has resulted from the failure to properly validate and verify this account. 

1. How the issue was discovered In early XXXX, I obtained my credit reports from the three major credit reporting agenciesXXXX XXXX XXXX XXXXXXXXto review my financial history for accuracy. When reviewing these reports, I noticed a collection account reported by Jefferson Capital Systems. The tradeline was listed as a collection/charge-off with a derogatory status and an alleged past-due balance of approximately {$2500.00}. The account did not include clear information regarding : The original creditor When Jefferson Capital acquired the debt Whether the debt was purchased, assigned, or transferred The date of first delinquency Any original contract associated with the alleged account Any billing history from the original creditor The absence of this information raised immediate concerns, especially because I had not received documentation from Jefferson Capital showing proof of ownership, proof of assignment, or validation of the debt. 

2. First rounds of disputes submitted to the credit bureaus Between XXXX and XX/XX/year>, I submitted formal written disputes to TransUnion, Experian, and Equifax. In these disputes, I included the following concerns : I did not receive original creditor documentation proving that I owed the alleged amount. 

I never received a notice of assignment or transfer showing Jefferson Capital owned the account. 

I never received a debt validation letter from Jefferson Capital Systems as required under FDCPA 809 ( b ). 

The reporting contained inaccurate or missing fields, including unclear dates and inconsistent ownership information. 

In each dispute, I requested a full reinvestigation under FCRA 611 ( a ) and demanded that the bureaus supply the method of verification required under 611 ( a ) ( 6 ) ( B ) ( iii ). I also explained that Jefferson Capital must provide : A copy of the original signed contract or application A complete breakdown of the accounts balance A full accounting history Proof that the company owns or has legal authority over the debt Copies of billing statements and payment records A copy of the charge-off documentation from the original creditor The credit bureaus responded with generic template statements saying the furnisher had verified the account as accurate, but no documentation whatsoever was provided. This indicated that the verification was likely an automated e-Oscar response from Jefferson Capital Systems, not a meaningful reinvestigation. 

3. Follow-up disputes to Jefferson Capital Systems After receiving generic responses from the credit bureaus, I sent direct written requests to Jefferson Capital Systems asking for validation of the debt under FDCPA 809 ( b ). I asked for : The original signed contract or application A copy of the original creditors statements A detailed ledger or accounting history The date the debt allegedly went delinquent Proof that Jefferson Capital purchased or was assigned the debt Copies of all notices sent to me Any documents they used to verify the debt to the credit bureaus Jefferson Capital Systems did not provide any of the requested documents. Instead, the account continued to appear on my credit reports as verified, even though no proof was ever supplied to me showing that the account was valid or that Jefferson Capital had the right to report it. 

4. Issues with the reporting itself As I examined the tradeline more closely, I identified numerous inconsistencies and missing elements, including : a. No proof of original creditor The credit report did not clearly identify : Who the original creditor was When the account was opened When the account allegedly went delinquent Why the account was charged off This information is required for any collection account to be reported accurately. 

b. No date of first delinquency ( DOFD ) The DOFD is required under FCRA for aging and retention purposes. Jefferson Capital did not provide this date, making the account impossible to age correctly and raising concerns about re-aging ( an unlawful practice ). 

c. Inconsistent or incomplete balance information The account shows a balance of approximately {$2500.00}, but Jefferson Capital did not provide : A breakdown of how this amount was calculated Whether interest or fees were added Whether the balance includes original creditor charges d. No substantiation for any late payments Some reports show late payment indicators, but Jefferson Capital has not produced any statements or transaction histories to support these claims. 

e. No evidence of assignment or legal ownership Jefferson Capital Systems did not provide : A contract of assignment A bill of sale A portfolio transfer document Any record showing they legally purchased or are otherwise authorized to report the alleged debt Without this proof, the reporting appears to violate both the FCRA and FDCPA. 

5. Failure to provide validation under FDCPA Under FDCPA 809 ( b ) : A debt collector must cease collection activity until the debt collector obtains verification of the debt. 

Because Jefferson Capital did not provide validation materialsincluding the original contract or itemized statementJefferson Capital was required to : Stop reporting the debt Stop collection attempts Remove the entry Instead, the account continued to be reported. 

Reporting a debt to a credit bureau is considered collection activity under federal law. Therefore : Jefferson Capital should not have reported the account Jefferson Capital should not have verified the account The credit bureaus should not have continued publishing it The continued reporting may constitute unlawful collection activity 6. Inadequate reinvestigation under FCRA 611 ( a ) The credit bureaus ' reinvestigation processes do not appear to meet FCRA standards for the following reasons : They relied exclusively on automated e-Oscar responses. 

No documentation was reviewed or provided. 

None of the disputes addressed missing DOFD information. 

None of the disputes resulted in a corrected or clarified report. 

No bureau provided the legally required method of verification. 

This indicates the bureaus : Did not perform a meaningful reinvestigation Did not evaluate the evidence Accepted unverified data from Jefferson Capital without question This constitutes a failure under FCRA requirements. 

7. Violations of FCRA 607 ( b ) Maximum possible accuracy Jefferson Capital Systems has a legal responsibility to ensure maximum possible accuracy of all reported information. This includes : Correct dates Valid balances Accurate creditor information Proper account status Clear ownership history No missing DOFD Because Jefferson Capital provided none of this information, the reporting does not meet the accuracy standard. 

8. Violations of FCRA 623 ( a ) ( 3 ) Duty to report disputes Some credit reports did not reflect the mandatory dispute notation : Consumer disputes this account. 

This omission misrepresents the account to lenders and violates federal law. 

9. Violations of FCRA 623 ( b ) Duty to investigate Jefferson Capital Systems is required to : Conduct a reasonable investigation Review all information provided by the consumer Provide corrected data to the bureaus Delete information that can not be verified Jefferson Capital ignored all of these obligations. 

10. Harm caused by inaccurate and unverifiable reporting The continued appearance of this unverifiable collection account has caused significant and measurable harm, including : Reduced credit score Denial of credit applications Increased interest rates Higher insurance premiums Emotional distress and frustration Time lost trying to resolve the discrepancies Difficulty refinancing loans Loss of access to favorable financial opportunities This harm continues every month the account remains on my reports. 

11. Summary of my actions To resolve this matter, I : Obtained my credit reports Identified inaccuracies in the Jefferson Capital tradeline Filed disputes with all bureaus Requested method of verification Sent validation requests to Jefferson Capital Requested documentation proving ownership Provided clear written explanations Filed multiple follow-up disputes Gave both the bureaus and Jefferson Capital time to respond Filed this CFPB complaint as a last resort Despite all steps taken, Jefferson Capital Systems has not provided evidence proving the account is valid. 

12. Why CFPB intervention is required CFPB involvement is necessary because : Jefferson Capital did not validate the debt The credit bureaus did not perform a real reinvestigation The method of verification was not disclosed The account contains multiple inconsistencies Jefferson Capital may have violated the FDCPA The credit bureaus may have violated the FCRA The continued reporting is causing ongoing harm I have exhausted all options available to me outside of regulatory action. 

Conclusion The account being reported by Jefferson Capital Systems is inaccurate, incomplete, unverifiable, and harmful. Jefferson Capital has not validated the debt, has not provided any original documentation, has not proven ownership, and has not complied with federal laws governing credit reporting and debt collection. The credit bureaus have not conducted a meaningful reinvestigation, relying instead on automated responses. 

Because of the failure to validate, the account should not be on my credit report at all. I am requesting the CFPBs assistance to require Jefferson Capital Systems and the credit bureaus to either : Provide full documentation and validation, or Delete the account entirely, as required under federal law. 

I respectfully request that the CFPB intervene to ensure compliance with the FCRA and FDCPA and to restore accuracy to my credit reports.

Company response to consumer: Closed with explanation