Consumer complaint received 2025-08-25 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: I.C. System, Inc.
State: NJ

Complaint narrative:
I am writing to formally dispute a collections account that has been added to my credit report. My name is XXXX XXXX, and the account in question is from the debt collector IC System Inc., with the original creditor listed as XXXX XXXX XXXX XXXX. The reported debt amount is {$870.00}, related to an alleged unpaid balance for a stolen XXXX XXXX. I believe this entry is inaccurate and invalid for the reasons detailed below, and I request that it be investigated and removed from my credit report immediately.

Here is a full summary of the events leading to this dispute : Several months ago, I accepted a promotional offer from XXXX XXXX XXXX XXXX for a free XXXX XXXX as part of a signup or upgrade program. Under the terms of this offer, the phone was provided at no upfront cost to me, with the understanding that it would be covered through my service plan. Shortly after receiving the device, it was unfortunately stolen. At the time, I had full insurance coverage on the phone through XXXX XXXX XXXX XXXX insurance policy, which I had been paying for as part of my plan. This policy was intended to protect against theft and provide a like-for-like replacement or reimbursement for the insured device. 

While awaiting the insurance claim processing and replacement, I purchased a temporary, lower-cost phone to use in the interim. I connected this temporary phone to my XXXX XXXX XXXX account to maintain service continuity. However, upon reviewing my insurance claim, XXXX XXXX XXXX refused to honor the policy by reimbursing or replacing the stolen XXXX XXXX with an equivalent model. Instead, they only offered coverage for a significantly older and less valuable XXXX XXXX XXXX, which directly contradicted the terms of my insurance policy. This refusal was unjustified and violated the agreement I had with XXXX XXXX XXXX. 

Frustrated with this handling, I decided to close my XXXX XXXX XXXX account entirely and switch to a new carrier,  XXXX XXXX. I ported my number and continued using the temporary phone on the new service. XXXX XXXX XXXX never provided me with a replacement phone under the insurance claim, and I did not

receive any further communication from them regarding the matter at that time. Many months after closing the account, I unexpectedly received a collection notice from IC System Inc. on behalf of XXXX XXXX XXXX, demanding payment of {$870.00} for the stolen XXXX XXXX. I firmly dispute this debt for the following key reasons : 1. The XXXX XXXX was obtained through a free promotional offer from XXXX XXXX XXXX, meaning there was no outstanding purchase balance or loan associated with the device that I was responsible for repaying.

2. I held a valid insurance policy with XXXX XXXX XXXX specifically for the phone, which covered theft. XXXXXXXX XXXX XXXX XXXX refusal to properly reimburse or replace the XXXX XXXX in accordance with the policy terms was improper and potentially illegal, as it breached our contract. I should not be held financially liable for their failure to fulfill the insurance obligations.

I have not made any payments toward this alleged debt, as I do not owe it, and I have supporting documentation related to the original promotional offer, my insurance policy details, and communications with XXXX XXXX XXXX regarding the claim denial ( which I can provide upon request during your investigation ).

Under the Fair Credit Reporting Act ( FCRA ), I request that XXXX  promptly investigate this matter by contacting the furnisher of the information ( IC System Inc. and XXXX XXXX XXXX XXXX ) and verify the accuracy of the account. If the debt can not be validated as accurate and legitimate, please delete it from my credit report. Additionally, please send me the results of your investigation, including any updates or deletions made, within the timeframe required by law.

Thank you for your attention to this dispute. I can be reached at XXXX or XXXX if you need any further information. 

Sincerely, XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation