Consumer complaint received 2025-10-28 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Servicing Solutions, LLC
State: CA

Complaint narrative:
To the Consumer Financial Protection Bureau, I am submitting this formal fraud report and consumer complaint regarding the actions of Servicing Solutions , LLC, involving the XXXX XXXX XXXX XXXX a financial product originally issued in partnership between XXXX XXXX XXXX, XXXX, and XXXX. 
Summary of Fraudulent Activity The XXXX XXXX XXXX XXXX program was discontinued on XX/XX/year>, and all accounts under this program were permanently closed. At that time, my account had a remaining balance of {$5000.00}, which was subsequently paid in full through the following verified payments : {$1000.00} Bank Transfer on XX/XX/year> {$500.00} Bank Transfer on XX/XX/year> {$1000.00} Bank Transfer on XX/XX/year> {$2500.00} Check No. XXXX on XX/XX/year> All payments cleared and were confirmed by my financial institution. 
Despite this, Servicing Solutions engaged in a pattern of deceptive and unlawful conduct, including : 1. Continuing to issue statements showing an unpaid balance after the account had been paid in full ; 2. Reporting the account as delinquent to XXXX  ; 3. Failing to correct the error after receiving documentation proving full payment ; and 4. Transferring or selling the same paid account to third-party agencies including XXXX XXXX XXXX and XXXX XXXX XXXX which resulted in renewed and fraudulent collection activity. 
Violations of Federal Law The actions by Servicing Solutions constitute serious violations of multiple consumer protection statutes, including : The Fair Credit Reporting Act ( 15 U.S.C. 1681 et seq. ), for knowingly furnishing false information to credit reporting agencies ; The Fair Debt Collection Practices Act ( 15 U.S.C. 1692 et seq. ), for misrepresenting the character, amount, and legal status of a debt ; and The Consumer Financial Protection Act ( 12 U.S.C. 5531 et seq. ), which prohibits unfair, deceptive, or abusive acts or practices in connection with consumer financial products and services. 
Servicing Solutions continued reporting and transfer of a fully paid account represent a willful pattern of fraudulent debt activity and negligent record handling, resulting in repeated credit harm, unnecessary disputes, and significant distress.

Requested Bureau Action I respectfully request that the Consumer Financial Protection Bureau investigate the actions of Servicing Solutions , LLC, XXXX XXXX XXXX and XXXX XXXX XXXX and their relationship with XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX, and XXXX, to determine whether they are engaging in : 1. Improper retention and transfer of paid or closed accounts ; 2. False credit reporting ; and 3. Unauthorized debt collection and resale of invalid debts. 
I further request that the CFPB require Servicing Solutions to : Cease all collection and reporting activity related to this account ; Correct any false or inaccurate credit data previously reported ; and Confirm in writing that this account has been marked paid in full and will not be transferred or sold again. 
Supporting Documentation Attached are supporting materials, including : Bank transfer records and cleared checks ; Servicing Solutions account statements ; Correspondence with XXXX and other credit bureaus ; and Notices and collection letters from subsequent agencies. 
This behavior reflects systemic mismanagement and fraudulent debt resale practices that should be investigated for compliance violations and consumer harm. 
Thank you for your prompt attention to this matter. I request acknowledgment of receipt and inclusion of this complaint in your official database for investigation. 
Sincerely, XXXX XXXX Enclosures : Payment Proofs, Bank Records, and Collection Notices

Company response to consumer: Closed with explanation