Consumer complaint received 2025-10-13 00:00:00
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Leafy Financial, LLC
State: TX

Complaint narrative:
Re : Dispute of Debt Reported by Leafy Financial , LLC Request for Deletion from Credit Reports Account # XXXX with XXXX, serviced by Leafy Financial LLC Dear CFPB Representatives : I am writing to formally rebut the response provided by Leafy Financial , LLC to my consumer complaint regarding the alleged debt associated with CreditNinja account # XXXX. After reviewing their submission, I believe it contains material inaccuracies, incomplete validation, and fails to meet the requirements under the Fair Debt Collection Practices Act ( FDCPA ), Fair Credit Reporting Act ( FCRA ), and relevant Texas consumer protection laws. As a result, I request that the CFPB investigate these issues thoroughly and require the deletion of this tradeline from my credit reports with XXXX XXXX, and XXXX, as it is unverifiable and inaccurate. 
For context, I originally disputed this debt because I questioned its validity, the authority of Leafy Financial to service or collect it, and the accuracy of the reported balance. Leafy Financials response, which claims to validate the debt, instead highlights several discrepancies that undermine its credibility. Below, I outline the key issues in detail, supported by evidence from their response and the original loan agreement ( attached for reference ). 
Below I will outline why this account is reporting inaccurate and demand deletion from my credit reports. 

Leafy Financial states in their response : We are servicing a XXXX account # XXXX for XXXX XXXX as of XX/XX/XXXX. However, they also assert that the account was opened on XX/XX/XXXX. This creates a clear impossibilityLeafy Financial claims to have been servicing the account XXXX months before it was even originated. This error suggests unreliable record-keeping and calls into question the entire validation process. 
Under FDCPA 1692g, debt collectors ( or servicers acting in a collection capacity ) must provide accurate and verifiable information when validating a disputed debt. This timeline discrepancy is a material inaccuracy that renders their response invalid. If Leafy Financial can not maintain consistent dates in their official communications, how can consumers trust the accuracy of the debt details they report to credit bureaus? I request that the CFPB demand corrected documentation or deem the debt unverifiable due to this error. 

Leafy Financial references the assignment clause in the original Loan Agreement and Installment Note, quoting : We may assign or transfer any or all of our rights, title and interest under this Loan Agreement at our discretion to any party, including XXXX pursuant to the XXXX XXXX offered on your behalf by XXXX. While this clause permits potential assignment, XXXX XXXX provides no proof that such an assignment actually occurred. The original agreement ( effective XX/XX/XXXX ) is between me and XXXX XXXX VI, XXXX XXXX XXXX, a Delaware XXXX XXXX XXXX XXXX as a Credit Access Business ( CAB ) and Credit Services Organization ( XXXX XXXX XXXX Texas XXXX. There is no documentation showing transfer of rights to Leafy Financial, such as an assignment contract, chain of title, or servicing agreement.

Without this evidence, Leafy Financial has not validated their authority to service or collect this debt. FDCPA requires proper verification, including proof of ownership or assignment, especially for third-party servicers. Leafy Financial describes itself as a servicer rather than a collection agency, but their business modelpurchasing and recovering non-performing debt portfoliosinvolves collection activities subject to FDCPA. Public records show Leafy Financial has faced multiple lawsuits alleging FDCPA violations, including : XXXX XXXX Leafy Financial , LLC ( XXXX, Indiana XXXX XXXX XXXX XXXX filed XX/XX/XXXX ), XXXX XXXX Leafy Financial , LLC ( filed XX/XX/XXXX, alleging Fair Debt Collection Act claims ), and XXXX XXXX Leafy Financial , LLC ( filed XX/XX/XXXX ). 
These cases indicate a pattern of statutory violations, further eroding trust in their practices. I urge the CFPB to require Leafy Financial to produce the assignment documents or invalidate their claim to this debt. 


The original loan agreement specifies a total amount financed of {$300.00}, with a finance charge of {$410.00}, resulting in total payments of {$710.00} over XXXX scheduled installments ( approximately {$170.00} each ). Leafy Financial now claims an outstanding balance of {$750.00} ( or {$750.00} in another part of their responsenote the inconsistency ), stating : Leafy has not added any additional interest or collection fees to your account. The above-referenced amount is your true balance under the terms of the agreement with XXXX. 
This represents an unexplained increase of approximately {$38.00} to {$39.00} over the original total. The agreement allows for late fees ( the greater of {$7.00} or 5 % of the payment amount after 10 days ), but Leafy Financial provides no itemization or breakdown explaining the accrualsuch as missed payments, accrued interest, or defaults since the last scheduled payment in XX/XX/XXXX. Without a detailed accounting, this balance is unverifiable and potentially inaccurate. 
CFPB regulations and FDCPA require clear itemization in debt validation responses, including separation of principal, interest, fees, and other charges. Texas law, under which this XXXX loan XXXX, caps interest on the loan portion at 10 % but allows high CAB fees ; however, any additions must be transparently documented to avoid predatory practices. The lack of explanation contradicts their no added fees claim and violates disclosure requirements. Please compel XXXX XXXX to provide a full transaction history or remove the inaccurate balance from my credit reports. 
XXXX. Licensing and Compliance Concerns Leafy Financial claims : Leafy Financial LLC is licensed to operate in all states where licensure is required. This information can be independently verified through each states public licensing database or regulatory authority. However, their website ( www.leafyfinancial.com ) provides no specific licensing details, and a review of the Texas XXXX XXXX XXXX XXXX XXXX ( OCCC ) resources shows no listing for Leafy Financial as a licensed CAB or XXXX. While XXXX ( XXXX XXXX VI, XXXX ) is licensed in Texas, Leafy Financials role as a servicer of XXXX debt XXXX require separate registration or compliance, especially if engaging in collection activities. 
Given their history of consumer complaints and lawsuits ( as noted above ), this raises red flags about their operational legitimacy. I request the CFPB verify Leafy Financials licensing status in Texas and assess whether their servicing of this debt complies with state and federal laws.

Requested Actions Based on these issues, I believe Leafy Financial has failed to properly validate the debt, and the information they report to credit bureaus is inaccurate and unverifiable. Under FCRA 1681i, credit reporting agencies must delete disputed information if it can not be verified within 30 days. I ask the CFPB to : 1. Investigate Leafy Financials response and require them to provide complete, accurate documentation addressing the above discrepancies.

2. If unverifiable, direct Equifax, Experian, and TransUnion to permanently delete this tradeline from my credit reports.

3. Assess potential violations of FDCPA, FCRA, and Texas Deceptive Trade Practices Act, and take appropriate enforcement action against Leafy Financial.

4. Provide me with updates on the investigation and any resolutions.

I have attached the following supporting documents : Copy of the original Loan Agreement and Installment Note ( dated XX/XX/XXXX ). 
Leafy Financials response to my complaint. 
Screenshots or excerpts from relevant lawsuits and public records ( if available ; otherwise, CFPB can access via PACER or other databases ). 
Thank you for your attention to this matter. Resolving this inaccurate debt reporting is crucial to protecting my financial well-being. I look forward to your prompt response and can be reached at the contact information above for any additional details. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation