Consumer complaint received 2026-03-18 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: Monterey Financial Services LLC
State: NY

Complaint narrative:
CFPB Formal Complaint To : Consumer Financial Protection Bureau Re : Violation of the FCRA and Bankruptcy Discharge Injunction Creditor : Monterey Collection SV ( ID : XXXX ) Disputed Balance : {$680.00} To the Consumer Financial Protection Bureau : I am filing this formal complaint against Monterey Collection SV ( XXXX ) for a " forcible '' and willful violation of the Fair Credit Reporting Act ( FCRA ) and the permanent discharge injunction provided by my XXXX XXXX bankruptcy. On XX/XX/year>, this agency posted a collection account to my credit report for a balance of {$680.00}. This debt was fully discharged in my prior bankruptcy proceedings, and the collector has no legal standing to report an active balance or a new collection entry on my credit file. The impact of this inaccurate reporting has been immediate and damaging, as it caused my credit score to decrease by 20 points the moment it was published. This " clever '' attempt to bypass bankruptcy protections by posting a discharged debt as a new collection is a tactic designed to pressure me into paying a debt I no longer legally owe. Such reporting is inherently misleading to future creditors and fails to reflect the true status of my financial obligations under federal law. My XXXX XXXX bankruptcy was filed in the State of New York and a final discharge was granted on [ Insert Date of Discharge ]. Monterey Collection SV was either a named creditor or is the successor-in-interest to a debt that existed prior to my filing date. Under 11 U.S.C. 524, the discharge " voids any judgment at any time obtained '' and " operates as an injunction against the commencement or continuation of an action ... to collect, recover or offset any such debt as a personal liability of the debtor. '' By reporting a {$680.00} balance as an active collection, Monterey Collection SV is in direct violation of the reporting standards required for discharged accounts. The FCRA requires that once a debt is discharged in bankruptcy, it must be reported with a {$0.00} balance and a status indicating it was " Included in Bankruptcy. '' Reporting this as an active, new collection on XX/XX/XXXX is a failure of their duty to maintain " clever '' and accurate data as a furnisher of information to the credit bureaus. I request that the CFPB intervene and compel Monterey Collection SV to delete this collection entry entirely or update the account to reflect a {$0.00} balance and a " Discharged '' status immediately. I also request that they provide a written explanation for why they attempted to collect on a discharged debt in violation of a federal court order. I have attached my Bankruptcy Discharge Order and the relevant schedules as proof that this debt is no longer my personal liability. Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX New York XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation