Consumer complaint received 2025-04-25 00:00:00
Product: Debt collection — Medical debt
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Southwest Recovery Services, Inc.
State: TX

Complaint narrative:
XX/XX/XXXX Consumer Financial Protection Bureau XXXX. XXXX XXXX Washington, D.C. XXXX Subject : Complaint Regarding Unlawful Medical Debt Collection and Credit Reporting Practices Dear Consumer Financial Protection Bureau, I am writing to formally lodge a complaint against Southwest Recovery Services , LLC, concerning their illegal collection practices and unlawful credit reporting related to a medical debt originally incurred with XXXX XXXXXXXX XXXX XXXXXXXX. 

Details of the Issue : Original Creditor : XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX, TX XXXX Phone : ( XXXX ) XXXX Debt Collector : Southwest Recovery Services, LLC XXXX XXXX XXXX, XXXX XXXX XXXX, TX XXXX Phone : ( XXXX ) XXXX CEO : XXXX XXXX Upon contacting XXXX XXXXXXXX XXXX XXXXXXXX directly to attempt to settle this alleged debt, their representative explicitly informed me that they no longer owned the debt and were not authorized to accept payment or collect upon it. They indicated that this debt had been transferred to Southwest Recovery Services. 

When I contacted Southwest Recovery Services requesting they provide verification of the debtspecifically documentation showing a direct contractual relationship between myself and their agency with my wet-ink signaturethey responded only with a copy of an original billing statement from XXXX XXXXXXXX XXXX XXXXXXXX . This documentation does not meet the standard of validation required under federal law. I have repeatedly informed Southwest Recovery Services that their lack of adequate validation renders them a third-party interloper attempting to enforce a debt they do not legally own. 

Additionally, Southwest Recovery Services has reported this alleged medical debt to credit reporting agencies, significantly harming my credit profile. Such reporting of medical debts is unlawful and violates the CFPB 's final rule prohibiting inclusion of medical debts in credit reports used by creditors to evaluate creditworthiness. Specifically, their actions violate : Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g : Failure to provide adequate debt validation upon consumer request. 

Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 : Unlawful reporting of invalidated medical debts. 

CFPB Final Rule ( Effective 2023 ) explicitly prohibiting medical bills from being included on credit reports or used by lenders in credit evaluations ( consumerfinance.gov ). 

Resolution Sought : Immediate removal of this medical collection entry from all credit reporting agencies. 

Written confirmation from Southwest Recovery Services that this account will no longer be reported or pursued. 

Full cessation of collection attempts and further validation demands from this third-party entity. 

Given the explicit legal breaches by Southwest Recovery Services, I request the CFPB promptly investigate and enforce compliance with federal laws protecting consumers from unauthorized debt collection practices and improper credit reporting. 

Thank you for addressing this serious matter. 

Respectfully

Company response to consumer: Closed with explanation