Consumer complaint received 2025-07-23 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: CL Holdings LLC
State: FL

Complaint narrative:
Formal Dispute of Alleged Debt and Demand for Validation Account Number : XXXX To Whom It May Concern, this letter serves as my formal dispute of the validity of the alleged debt referenced above, under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S. Code 1692g. I am also demanding full validation of the alleged obligation you claim XXXX XXXX owes, including the original contract bearing my signature and a complete chain of title proving your legal right to collect. 

I. Lack of Privity and Contract I have no contractual relationship with your agency. You are not a party to any agreement XXXX may have had with the original creditor. No privity of contract exists between us, and I have not consented to any assignment or assumed any obligation to you II.Deceptive practices You are conducting obscure and deceptive practices, your company is re-aging debt to keep the debt claims active and also to mention you are claiming a debt collection agency is the original creditor of said debt. 
In XXXX XXXX XXXX, XXXX XXXX XXXX ( 1995 ), the Supreme Court confirmed that third-party debt collectors are subject to strict compliance under FDCPA when asserting debts that are not properly documented or legally owed. Under 15 U.S. Code 1692e, it is unlawful to misrepresent the character, amount, or legal status of any debt. 

a.. Unjust Enrichment and Setoff If the creditor has claimed a tax deduction or issued a 1099-C for a setoff of this debt, and later sells the same obligation to a third party ( you ), then both parties stand to unjustly benefit : - The original creditor receives a tax advantage and additional revenue by selling an already discharged asset ; - Your agency seeks to collect on a debt that has no remaining enforceability.

This constitutes double recovery and may violate basic equitable principles under Restatement ( Third ) of Restitution and Unjust Enrichment 1 - Proverbs 11:1 ( KJV ) : " A false balance is abomination to the Lord : but a just weight is his delight. '' This affirms the importance of truthful accounting and fair treatment especially relevant in debt collection practices.

According to IRS guidelines and accounting principles under the accrual method, when a creditor files IRS Form 1099-C for cancellation of debt, it signifies that the debt has been written off, either partially or in full. Once this filing has occurred, the debt is removed from the creditors books as a receivable asset. ( See IRS Pub. 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments. ) In XXXX XXXX XXXX XXXX XXXX XXXXXXXX, the Tax Court held that the issuance of Form 1099-C is evidence that a creditor intended to cancel the debt. This raises serious doubt as to whether there is still a legally enforceable obligation, particularly when the original creditor has taken a tax benefit from such cancellation. 

IV. Your Required Response In light of the above, I demand the following within 30 days : 1. A copy of the original, wet-ink signed contract creating the obligation 2. Full accounting and itemization of the alleged amount 3. Proof of chain of title and lawful assignment from the original creditor 4. IRS 1099-C records, if filed by the original creditor 5. Proof that the debt was not already canceled, set off, or otherwise extinguished Failure to provide proper validation will be treated as a waiver of any further claim or collection effort, and these violations of the FDCPA, will be subject to legal action, request for investigation by the Federal Trade Commission.

Please cease all collection activities until full validation is provided. Any further attempt to collect without such proof will be considered harassment and unlawful collection activity under federal law. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation