Consumer complaint received 2026-07-02 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt is not yours
Company: Diversified Adjustment Service, Inc.
State: MO

Complaint narrative:
* * What Happened * * I am submitting this complaint because * * Diversified Adjustment Service, Inc. * * continues to report a collection account on my consumer credit reports that I believe is inaccurate, incomplete, misleading, and has not been properly verified as required by the Fair Credit Reporting Act ( FCRA ). I exercised my rights under the FCRA by disputing this account with the consumer reporting agencies and requesting that a reasonable reinvestigation be conducted. Despite my dispute, Diversified Adjustment Service continues to report the account without providing competent documentary evidence establishing that the information is accurate or that it has the legal authority to collect and report the alleged debt. Instead of providing the documentation I requested, I have received only generalized responses indicating that the account was " verified '' or that it will continue to be reported. These responses do not explain what records were reviewed, what evidence was relied upon, or how Diversified Adjustment Service concluded that every aspect of the reporting was accurate. A statement that an account has been verified, without providing supporting documentation, does not satisfy the requirements of the Fair Credit Reporting Act. The Diversified Adjustment Service collection account continues to appear as a derogatory collection account on my consumer credit reports and has caused substantial harm to my financial standing. Collection accounts have a significant negative impact on a consumer 's credit profile because they are considered serious derogatory information by lenders, landlords, insurers, and employers. The continued reporting of this account affects my ability to obtain credit, qualify for favorable interest rates, secure housing, and pursue other financial opportunities. Because of these serious consequences, I requested that Diversified Adjustment Service conduct a complete investigation supported by original business records rather than relying solely upon automated verification systems or electronic responses. Under * * 15 U.S.C. 1681i * *, once a consumer disputes the accuracy of information appearing on a credit report, the consumer reporting agency must conduct a reasonable reinvestigation to determine whether the disputed information is accurate. Likewise, * * 15 U.S.C. 1681e ( b ) * * requires consumer reporting agencies to maintain reasonable procedures to assure the maximum possible accuracy of the information they report. These statutory obligations require more than forwarding a dispute electronically and accepting a computerized response from the furnisher. A reasonable investigation requires review of competent documentary evidence establishing that the disputed information is accurate, complete, and legally reportable. Because Diversified Adjustment Service is a third-party debt collector, I requested documentation establishing that it has the legal authority to collect and report the alleged debt. Specifically, I requested copies of any assignment agreements, transfer documents, servicing agreements, collection placement records, or any other documentation demonstrating that the alleged obligation was lawfully assigned or transferred to Diversified Adjustment Service. I also requested documentation identifying the original creditor, records establishing the complete chain of assignment, and documentation demonstrating that Diversified Adjustment Service has the legal authority to furnish information regarding this alleged account to the nationwide consumer reporting agencies. To date, I have not received competent documentary evidence establishing its legal authority to collect or report the alleged debt. In addition, I requested copies of the original agreement or contract that created the alleged obligation, documents bearing my signature, complete account statements, payment history, account ledger, documentation supporting the balance being reported, records establishing the date of first delinquency, documentation supporting any interest, collection fees, penalties, or additional charges added to the account, and every record relied upon during Diversified Adjustment Service 's investigation. If Diversified Adjustment Service contends that the account is accurate, then it should have no difficulty producing the original business records supporting every aspect of its reporting. Without these records, I have no reasonable basis to conclude that the information appearing on my consumer credit reports is accurate or legally reportable. I specifically requested disclosure of the method of verification used during the investigation. I requested the identity of the individual or department that conducted the investigation, the documents reviewed, the source of the information relied upon, and the procedures used to determine that the account was accurately reported. Instead of providing this information, Diversified Adjustment Service merely concluded that the account had been verified. This type of response provides no meaningful explanation regarding how the investigation was conducted and prevents me from determining whether Diversified Adjustment Service complied with its obligations under the Fair Credit Reporting Act. I am also concerned that the investigation conducted by the consumer reporting agencies relied primarily upon automated verification systems rather than an independent review of original source documentation. A reasonable investigation requires more than accepting a furnisher 's electronic confirmation without examining the underlying records. When a consumer specifically disputes a collection account and requests supporting evidence, the furnisher should review the original account records, assignment documents, collection placement records, payment history, account statements, and every other relevant business record before concluding that the account is accurate. Additionally, I dispute the balance currently being reported by Diversified Adjustment Service. If the reported balance includes accrued interest, collection fees, penalties, administrative charges, or other amounts, I request documentation explaining how those amounts were calculated, when they were added, and the contractual or statutory authority permitting those charges. If Diversified Adjustment Service can not fully substantiate the reported balance using contemporaneous business records, then the reported balance should be corrected or the account should be removed entirely. I also requested documentation establishing the date of first delinquency and demonstrating that the account is being reported within the period permitted under the Fair Credit Reporting Act. Accurate reporting of the date of first delinquency is essential because it determines the maximum period during which adverse information may legally remain on a consumer credit report. If Diversified Adjustment Service can not provide reliable business records establishing the correct date of first delinquency, then the account can not be considered accurately reported. If the alleged account was originally owed to another creditor, I request documentation establishing that the information transferred from the original creditor to Diversified Adjustment Service remained complete and accurate throughout every transfer. Any missing documentation, incomplete transfer records, or breaks in the chain of assignment raise serious concerns regarding whether Diversified Adjustment Service has the legal authority to report the alleged account. The continued reporting of this Diversified Adjustment Service collection account has caused ongoing financial harm. Consumer credit reports are relied upon by lenders, landlords, employers, insurance companies, and other businesses when making important financial decisions. The presence of an unsupported collection account may result in credit denials, higher interest rates, increased insurance costs, reduced housing opportunities, and other adverse financial consequences. Congress enacted the Fair Credit Reporting Act to ensure that consumer reporting agencies furnish only information that is accurate, complete, and capable of verification. Allowing unsupported or inaccurate collection accounts to remain on consumer credit reports undermines these important consumer protections. I am not requesting that accurate information be removed simply because it is unfavorable. Rather, I am requesting that Diversified Adjustment Service comply with its obligations under federal law by substantiating the disputed account with competent documentary evidence. If Diversified Adjustment Service possesses original business records establishing the accuracy of the account and its legal authority to collect and report the alleged debt, then those records should be produced. If Diversified Adjustment Service can not produce the original documentation necessary to verify the account and establish its authority, then the account should not continue to appear on my consumer credit reports. I also request that Diversified Adjustment Service review every data field it is furnishing to the nationwide consumer reporting agencies, including the account status, collection status, reported balance, payment history, date of first delinquency, collection placement date, and every other item of information associated with the account. If any portion of the information being reported is inaccurate, incomplete, inconsistent, misleading, or unsupported by original business records, it should be corrected or deleted immediately. I respectfully request that the Consumer Financial Protection Bureau require Diversified Adjustment Service and the consumer reporting agencies to conduct a complete, lawful, and reasonable reinvestigation of this disputed account. I request that Diversified Adjustment Service provide copies of the original agreement or contract, documents bearing my signature, complete account history, payment records, account statements, account ledger, documentation supporting the reported balance, documentation establishing the date of first delinquency, assignment records, transfer documents, documentation establishing its legal authority to collect and report the alleged debt, and every document relied upon during its investigation. I also request disclosure of the complete method of verification used and a detailed explanation of how Diversified Adjustment Service concluded that the account was accurately reported. If Diversified Adjustment Service can not produce competent documentary evidence establishing that this collection account is accurate, complete, legally enforceable, and properly reportable, I request that it be permanently deleted from all of my consumer credit reports. I further request written confirmation of the investigation results, copies of every document relied upon during the investigation, and an updated copy of my consumer credit reports reflecting the deletion of any information that can not be verified in accordance with * * 15 U.S.C. 1681e ( b ), 1681i, and 1681s-2 ( b ) * *. My request is based on my rights under the Fair Credit Reporting Act to have a consumer credit report that contains only information that is accurate, complete, and supported by competent documentary evidence.

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