Consumer complaint received 2025-06-24 00:00:00
Product: Debt collection — I do not know
Issue: Written notification about debt — Didn't receive notice of right to dispute
Company: CL Holdings LLC
State: TX

Complaint narrative:
I am filing a formal complaint against Jefferson Capital Systems , LLC ( JCS ) for violating the Texas Finance Code and the Fair Debt Collection Practices Act ( FDCPA ) in their handling of my dispute request regarding account number XXXXXXXX XXXX XXXX XXXX XXXX 

Timeline of Events : On XX/XX/XXXX, I sent a certified letter to Jefferson Capital Systems , LLC, requesting validation of the debt they are reporting to the credit bureaus.

I gave JCS the required 30-day period, as mandated by the FDCPA and the Texas Finance Code, to respond with the necessary validation of the debt. 

To date, they have failed to provide any response to my dispute or to validate the debt within the required timeframe. Additionally, there is no evidence to suggest that they ever sent a response.

Furthermore, despite not providing the requested validation, JCS continued collection activity on this account.

Violation Details : Failure to Provide Debt Vali
dation : Jefferson Capital Systems did not respond to my request for validation within the 30-day timeframe required under the FDCPA and the Texas Finance Code.

Case Law : In F.T.C. v. Check Investors, Inc., 502 F.3d 159 ( 3d Cir. 2007 ), the court found that debt collectors must respond to a debtors request for validation of the debt within the 30-day period set forth by the FDCPA. The court emphasized that failure to do so violates the consumers rights and opens the collector to liability. Similarly, in Davis v. Creditors Interchange , Inc., 2008 U.S. Dist. LEXIS 116578 ( S.D. Fla. 2008 ), failure to provide validation was determined to be a violation of both the FDCPA and state laws.

Failure to Cease Collection Activity : Despite my formal dispute and their failure to provide validation, JCS continued collection activity on the account. This constitutes a violation of my rights under both the Texas Finance Code and the FDCPA.

Case Law : In Grigoryan v. The National Institute of Finance , Inc. , 20 F. Supp. 3d 1119 ( C.D. Cal. 2014 ), the court held that a debt collector who continues collection efforts after receiving a valid dispute letter violates the FDCPA, which mandates that all collection activities must cease until the debt is validated. Similarly, in Wilson v. Quadramed Corp., 225 F.3d 350 ( 3d Cir. 2000 ), the court ruled that continuing collection activities without validating the debt violates the FDCPA.

Internal Records Inadequate : Jefferson Capital Systems ' internal records do not substantiate their claims that they responded to my dispute request. Their failure to provide timely and accurate documentation is clear evidence of improper debt collection practices.

Case Law : The Bailey v. Security National Servicing Corp., 154 F. Supp. 2d 919 ( S.D. Ind. 2001 ), ruling supports that a collectors internal records can not replace proper documentation required under the FDCPA. The court emphasized that failing to provide sufficient validation documentation violates the law, particularly when the debt collector can not substantiate its claims.

Identity Theft or Fraud Assumption : Due to their failure to validate the debt, I can only assume that the account in question originated as a result of identity theft, misidentification, or fraudulent reporting.

Case Law : In Robinson v. First National Collection Bureau , Inc., 2011 U.S. Dist. LEXIS 120858 ( D. Colo. 2011 ), the court ruled that the failure to validate a debt raises a presumption that the debt could have resulted from identity theft, misidentification, or fraud, especially if the consumer has no knowledge of the debt. The court held that such violations would require the debt collector to prove the debts legitimacy through proper documentation.

Damages Incurred : As a result of these failures, I have already suffered significant damages. This includes negative impacts on my credit score, an inability to secure financial opportunities, and other hardships caused by JCSs improper handling of the debt. The failure to properly validate the debt has caused unnecessary stress and hardship.

Company response to consumer: Closed with explanation