Consumer complaint received 2025-06-02 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: CL Holdings LLC
State: TX

Complaint narrative:
Jefferson Capital Systems, ( " Jefferson '' ) has violated my rights under the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ) concerning an alleged debt reported on my credit file.

Jefferson has reported an alleged debt to consumer reporting agencies ( XXXX XXXX, and XXXX  ) without any prior notice and has attempted to collect on this account without my consent or valid verification. The original creditor, Conns, has confirmed that no contract exists for these alleged services, rendering Jefferson 's claim and subsequent reporting baseless. Furthermore, this alleged account, originally opened in XXXX and charged off in XX/XX/XXXX, has been illegally re-aged by Jefferson, appearing as " open '' on XX/XX/XXXX. Jefferson has failed to provide any verification for this alleged debt, and a customer representative confirmed on XX/XX/XXXX, that no communication or verification had been issued to me regarding this account. These actions constitute multiple violations of the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ), consistent with Jefferson 's documented history of similar illegal practices.

Specifically, the following violations have occurred : Violations of the Fair Credit Reporting Act ( FCRA ) : 15 USC 1681a ( d ) ( 2 ) ( A ) ( i ) : Reporting information solely as to transactions between the consumer and the reporting entity. Jefferson was not party to the alleged transaction with XXXX and was never authorized to report the alleged debt.

15 USC 1681c-2 ( c ) ( 1 ) ( c ) : Providing consumers with valid documentation to verify the account. Jefferson has failed to produce any valid documentation proving I obtained any goods, services, or money related to the alleged transaction.

15 U.S.C. 1681s-2 ( b ) Responsibilities of Furnishers of Information : Jefferson, as a furnisher of information to consumer reporting agencies, has failed in its duty to ensure the accuracy of the information it reports and to conduct a reasonable investigation upon dispute. By reporting an alleged debt that it can not verify, and for which the original creditor has confirmed no contract exists, and by misrepresenting the account 's age ( opened in XXXX by Conns, but reported as opened in XX/XX/XXXX and stating last activity date on my credit report in XX/XX/XXXX ), Jefferson has furnished erroneous information, causing direct harm to my credit reputation and resulting in credit denials. Furthermore, Jefferson has failed to conduct a reasonable investigation into the validity of this debt upon receiving my dispute, as required by law. During a call with your representative on XX/XX/XXXX, at approximately XXXX XXXX ( CST ), I was informed that the only account information on hand was statements from the seller ( Conns  ), and that any additional information would need to be requested from the seller. This admission further supports that no proper verification was performed on this alleged debt when purchased, and that Jefferson lacks the necessary documentation to substantiate its claims.

15 U.S.C. 1681 ( a ) ( 4 ) Ensuring accuracy and fairness in reporting : The fundamental principle of the FCRA is to ensure accuracy and fairness in credit reporting. Jefferson 's actions in reporting an unsubstantiated and unverified alleged debt, and particularly its re-aging of the account, directly undermine this principle, demonstrating a disregard for the accuracy of consumer credit information.

Furthermore, Jefferson is reporting this alleged collection account with conflicting and misleading statuses on my credit profile. While the account was officially charged off in XX/XX/XXXX by the original creditor, Jefferson is simultaneously reporting it as " open '' with an " open date '' of XX/XX/XXXX, and also indicating a " charged off '' status in the payment history. This contradictory reporting is inherently inaccurate and misleading, violating Jeffersons duty as a furnisher of information under FCRA 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) and ( 2 ) to provide accurate and complete information. An account can not logically be both " open '' ( implying ongoing activity ) and " charged off '' ( implying it has been written off as a loss ) in a manner that accurately reflects its status. This misrepresentation further compounds the harm caused by the illegal re-aging of the debt and creates confusion for any entity reviewing my credit report. While on XXXX   the reporting is completely different this further supports that information has not been reported accurately if different

across the credit reporting agencies. Violations of the Fair Debt Collection Practices Act ( FDCPA ) : Illegal Reporting to Credit Bureaus Without Prior Communication : Jefferson Capital Systems reported this alleged debt to consumer
reporting agencies ( XXXX XXXX and XXXX  ) on or before XX/XX/XXXX, with an " open '' date of XX/XX/XXXX. Crucially, JCS never contacted me by phone, mail, or any other means prior to posting this account on my credit profile. This is a direct violation of federal law. Effective XX/XX/XXXX, an amendment to Regulation F, which implements the FDCPA, explicitly prohibits debt collectors from reporting information about a debt to the three major credit reporting agencies before they have made initial contact with the consumer ( either through a phone conversation or by sending a debt validation notice and waiting a reasonable period for deliverability ). JCS 's action of " silent posting '' this debt without prior notice is a clear breach of 12 C.F.R. 1006.30 ( a ) ( 1 ). 15 U.S.C. 1692f ( 1 ) Prohibiting unfair collection practices : Jefferson is attempting to collect an amount not expressly authorized by an agreement or permitted by law. Given that the original creditor, XXXX, has confirmed no contract exists for these alleged services, Jefferson 's continued attempts to collect this debt constitute an unfair and unconscionable collection practice.

15 U.S.C. 1692j ( a ) Furnishing certain deceptive forms : Jefferson 's actions, including reporting an alleged debt they can not substantiate, create a false belief regarding the legitimacy of the debt and their participation in its collection. This misrepresents their actual standing and the origin of the alleged obligation.

15 USC 6802 ( 1 ) : Prohibiting disclosure of nonpublic personal information to nonaffiliated third parties. Jefferson, a third-party debt collector, was not authorized to access or report my personal information without consent.

15 U.S.C. 1692g ( b ) Debt collectors must provide verification of the debt upon request : Despite my request, Jefferson has failed to provide sufficient documentation proving their legal right to collect the alleged debt. This is further evidenced by your representative 's statement on XX/XX/XXXX, at approximately XXXX XXXX  ( CST ), indicating that only account statements were on hand and additional information would need to be requested from the seller. I demand verifiable proof of the alleged debt, including : o The original signed agreement or contract creating the debt.

o The flow agreement supporting the debt transfer from XXXX to Jefferson. o The assignment bill of sale proving Jefferson 's legal ownership of this specific alleged debt. o A complete chain of titles demonstrates how Jefferson acquired this alleged debt from the original creditor. 15 U.S.C. 1692e ( 8 ) Prohibiting false or misleading representations : By reporting this alleged debt to consumer reporting agencies without valid verification, by misrepresenting the account 's age, and without acknowledging its disputed status, Jefferson is communicating credit information that is known or should be known to be false. This includes reporting an account opened by the alleged
creditor in XXXX as opened in XX/XX/XXXX, and only first appearing on my credit report in XX/XX/XXXX, which constitutes re-aging and misleading representation of the debt 's status.

Violations Related to the Sale of Debts and Lack of Documentation : Jefferson 's failure to provide a valid bill of sale, assignment agreement, or a clear chain of custody proving ownership of the alleged debt violates established Federal Trade Commission ( FTC ) guidelines and various state laws that require debt buyers to maintain and produce such documentation to prove legitimacy and legal standing to collect. The statement by your representative on XX/XX/XXXX, at approximately XXXX XXXX ( CST ), that only account statements were available, and further information would need to be requested from the seller, further supports that no verification was ever performed on this alleged debt when purchased.

Jeffersons Pattern of Violations Inaccurate Credit Reporting and Re-aging : Jefferson has a recurring pattern of allegedly reporting inaccurate information, including the illegal " re-aging '' of debt, which makes older debts appear more recent to extend their negative impact on credit reports. My current complaint directly aligns with this known practice. For example, mention cases where Jefferson was
accused of inaccurate credit reporting ( e.g., XXXX f

or discharged debts. Failure to Investigate Disputes : Jefferson has been accused in lawsuits, such as Lawson v. Jefferson Capital Sys. ( 2023 ), of failing to properly investigate and report the disputed nature of debts to consumer reporting agencies, even when disputes were made orally. This demonstrates that Jefferson has a history of failing to adhere to consumer protection laws, which may indicate a systemic issue rather than an accidental error.

Company response to consumer: Closed with explanation