Consumer complaint received 2025-11-17 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Tower Loan of Mississippi, Inc.
State: TX

Complaint narrative:
I am submitting this statement regarding the installment account being reported by Tower Loan, which currently appears on my XXXX  credit file as a charged-off and derogatory account with a balance of {$2300.00}. The purpose of this statement is to explain in detail what happened, why I am disputing the accuracy and validity of the reporting, and why the account appears to contain errors, inconsistencies, missing information, and incomplete data that have directly impacted my credit profile. 

To begin, the Tower Loan account is being reported as an installment sales contract with a monthly payment amount of {$87.00} and a term of 36 months. The XXXX  report lists the account as opened on XX/XX/XXXX and closed on XX/XX/XXXX. The balance is shown as {$2300.00}, with a high balance amount of {$2400.00}. The payment status is listed as Collection/Charge-Off, and the account is marked derogatory. The comments also state that the account was charged off as a bad debt and written off as profit and loss. 

While these details are shown on the credit report, the information surrounding this account is incomplete, unclear, and does not reflect any documentation or verification that would help me understand the legitimacy or accuracy of the reporting. There are several issues regarding dates, activity, reporting accuracy, and the lack of validation or explanation from Tower Loan. These issues form the basis of my dispute and my request for a full reinvestigation.

One of the first concerns I have involves the timeline of this account. The account is listed as opened on XX/XX/XXXX, yet I did not receive any detailed documentation, billing statements, payment confirmations, or monthly account statements from Tower Loan that would show how the contract progressed from the opening date to the alleged delinquency or charge-off. There is no evidence showing how the original balance increased to the high balance amount of {$2400.00}, nor is there any itemized payment history explaining which payments were applied, missed, or assessed with additional fees. Without access to a full payment ledger, complete transaction history, or itemized breakdown of the account, I can not confirm whether the balance being reported is accurate. 

The next issue concerns the date the account was XXXX. I was never notified by Tower Loan that the account was closed on that date. I did not receive any closure notice, final bill, settlement documentation, or communication explaining why the account was closed or how the balance reached the amount being reported. Normally, when an installment loan reaches the point of closure or charge-off, the creditor sends formal notices that outline the status change. However, I did not receive any such documentation from Tower Loan. 

Additionally, the XXXX  report states that the Last Activity on the account occurred on XXXX same day it was closed. I did not make any payment, communication, or transaction on that date that would constitute activity. If the date of last activity is being determined internally by Tower Loan rather than based on consumer-initiated activity, this may be misleading. The FCRA requires that reported dates be accurate and reflective of real consumer action or documented account events. If Tower Loan generated this date as an internal processing date, it may not accurately represent actual account behavior. 

The report also lists a Status Date of XX/XX/XXXX, which appears to be the date the account was officially classified as a Collection/Charge-Off by the furnisher. This date takes place seven months after the account was closed and several months after the alleged last activity date. The discrepancy between these dates raises concerns about the accuracy of the reporting. If an account was charged off much later than it was closed, there should be documentation explaining why the charge-off occurred months after closure and what activity occurred during the time in between. Tower Loan has provided no such documentation. 

Another issue involves the reporting of past due amounts. The report displays a past due amount of {$2300.00}, which is identical to the current balance. There is no breakdown showing how the past due balance was calculated or whether it includes missed payments, fees, interest, or other charges. Without transparency or documentation, it is not possible to determine whether this amount is accurate or whether the calculations were performed correctly. 

The XXXX  report also indicates that Tower Loan reported a limit of {$0.00}. While installment loans typically do not have traditional credit limits, this field being left at zero can be misleading or incomplete when the account is evaluated by credit scoring models or automated systems. More importantly, the limit field being inaccurate or left empty suggests incomplete account reporting.

Furthermore, the account is marked as Account not disputed in the dispute status section. This is inaccurate because I am now actively disputing the account with both the furnisher and the credit bureau. Under FCRA 623 ( a ) ( 3 ), furnishers are required to accurately report the dispute status of an account once a consumer disputes the information. This incorrect coding suggests that Tower Loan may not be maintaining accurate records or may have failed to update the dispute designation when required.

There is also no information provided about whether Tower Loan attempted to contact me before reporting the account as a charge-off. For an account to be charged off and sent for negative reporting, lenders typically provide notices of delinquency, notices of missed payments, and notifications of potential negative action. I did not receive any delinquency notices, acceleration notices, charge-off warnings, or written communications explaining Tower Loans decision to classify the account as a loss. If Tower Loan reported the account as charged off without attempting to notify me or without following standard procedures, this raises significant concerns.

The report also lists the creditor type for the account as Miscellaneous Finance. This vague categorization does not clearly identify the nature of the account or the original contract terms. Consumers have the right to understand what financial product they are being evaluated on. If the creditor type is not properly identified, it becomes difficult to confirm the validity and accuracy of how the account is being categorized on the credit report.

Additionally, the Account Rating and Original Creditor fields are marked as Derog, which may not fully or accurately represent the history or specifics of the account. A generic derogatory label does not reflect detailed account information and adds to the incomplete nature of the reporting.

A major concern involves the complete lack of validation or documentation from Tower Loan. I have not received : A signed copy of any contract Original loan documents Truth-in-lending disclosures Payment history Itemized statements Communication logs Evidence of notices sent Any documentation supporting assignment or transfer Because none of these materials have been provided, Tower Loan has not demonstrated that the account is accurate, complete, or verifiable. The FCRA requires that furnishers maintain reasonable procedures to ensure maximum possible accuracy when reporting. Without proper documentation, the account can not meet that standard.

The reporting also appears only on XXXX, not XXXX  or XXXX. If Tower Loan had complete, accurate, and verifiable information, it is reasonable to expect that the account would appear consistently across multiple bureaus. The fact that it appears in only one bureau suggests inconsistency in reporting practices and raises additional questions about the completeness and accuracy of the information furnished.

Another important factor is the way the account impacts my creditworthiness. The charge-off status and derogatory rating severely impact my credit profile, affecting my ability to obtain loans, financing, housing, and other opportunities. This impact is especially concerning given the incomplete, inconsistent, and unverified nature of the reporting.

I want to emphasize that I am not refusing to acknowledge responsibility for legitimate obligations. My concern is specifically with the accuracy, completeness, and verifiability of the reporting being furnished by Tower Loan. If Tower Loan believes this information is correct, they should be able to produce original, legally compliant documentation to support the entry. If they can not produce such documents, then the account should not continue to appear in a consumers credit report.

In summary, the issues surrounding this account include : Missing or incomplete documentation Inconsistent reporting dates Lack of notices or communication No itemized balance breakdown Unclear last activity date No proof of validation Not listed as disputed Appears only on XXXX  Missing contract or agreement Unverified past due amount Unclear charge-off timeline Incomplete creditor category Inaccurate account classification Taken together, these factors create a situation where the account can not be confirmed as accurate, complete, or verifiable under FCRA requirements . Therefore, I am requesting that Tower Loan and XXXX  conduct a full reinvestigation into this account. Unless Tower Loan can provide the original agreement, complete loan file, payment history, legally required notices, and documentation supporting the charge-off and balance, the account should be removed as unverifiable. 

This is my complete and factual explanation of what happened regarding the Tower Loan account.

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