Consumer complaint received 2026-04-22 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: National Enterprise Systems, Inc.
State: OH

Complaint narrative:
b'CONSUMER FINANCIAL PROTECTION BUREAU\nSUPPLEMENTAL FORMAL CONSUMER COMPLAINT\nDATE: XXXX XXXX, XXXX, COMPLAINANT: XXXX XXXX XXXX XXXX XXXX (PrXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX OH XXXX XXXX XXXX XXXX XXXX AGE: XXXX years old XXXX XXXX Consumer\n\nREFERENCE TO PRIMARY COMPLAINT\nThis complaint is a supplemental filing and directly references CFPB XXXX XXXX XXXX filed XXXX XXXX XXXX naming both XXXX XXXX XXXX and National Enterprise Systems, Inc. as Respondents. This supplemental complaint is filed separately to ensure that National Enterprise Systems, Inc.\'s specific and independent violations of the Fair Debt Collection Practices Act (FDCPA) receive dedicated review, and to formally protect Complainant\'s rights under the FDCPA\'s one-year statute of limitations, which expires XXXX XXXX, 2027.\n\nRESPONDENT\nNational Enterprise Systems, Inc. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Alleged Balance: XXXX Original Creditor: XXXX XXXX XXXX Date of Assignment to NES: On or about XXXX XXXX XXXXn\nI. PRELIMINARY STATEMENT XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX residing in XXXX, acting Pro Se. Under the Consumer Financial Protection Act, the CFPB maintains a dedicated Office for Older Americans charged with protecting consumers aged XXXX and older from financial exploitation, predatory practices, and abusive debt collection. This complaint is submitted with the express request that it be routed to the CFPB\'s Office for Older Americans for priority review, consistent with the primary complaint filed under XXXX XXXX XXXX.\n\nThis supplemental filing is concurrently directed to the XXXX Attorney General\'s Elder Justice Unit for review of NES\'s conduct under XXXX consumer protection and elder financial abuse statutes.\n\nII. BACKGROUND\nOn or about XXXX XXXX XXXX, XXXX XXXX XXXX assigned, transferred, or sold Account No. XXXX to National Enterprise Systems, Inc. ("NES") for collection. At that moment, NES assumed the role of "debt collector" as defined under 15 U.S.C. 1692a(6) and became fully subject to all requirements of the Fair Debt Collection Practices Act, the CFPB\'s Debt Collection Rule (Regulation F), effective XXXX XXXX XXXX, and the Metro 2 Credit Reporting Resource Guide maintained by the Consumer Data Industry Association (CDIA) as a data furnisher to consumer reporting agencies.\n\nFrom the date of assignment to the date of this filing a period of more than six months NES has:\n\nNever provided Complainant with a legally and complete compliant debt validation notice;\nNever ceased collection activity following Complainant\'s written dispute;\nNever disclosed the disputed status of the debt to consumer reporting agencies as required by Metro 2 standards;\nNever produced a chain of title, securitization documentation, or account-specific bill of sale establishing legal standing to collect; and\nNever responded to Complainant\'s formal Notice of Intent dated XXXX XXXX XXXX.\nThis is not a technical oversight. This is a pattern of willful noncompliance by a professional debt collection agency that knows or should know its legal obligations under federal law, Regulation F, Metro 2 reporting standards, and its own professional code of ethics.\n\nIII. SPECIFIC FDCPA VIOLATIONS NATIONAL ENTERPRISE SYSTEMS, INC.\nViolation 1 Failure to Provide Debt Validation Notice and Refusal to Produce Supporting Documentation\n15 U.S.C. 1692g(a) | Regulation F, 12 C.F.R. 1006.34 | ACA International Code of Ethics\n\nWithin five days of its first communication with Complainant, NES was required by law to provide a written notice containing:\n\nThe amount of the debt;\nThe name of the creditor to whom the debt is owed;\nA statement of Complainant\'s 30-day right to dispute the debt; and\nNotice that upon written dispute, NES must obtain and mail verification of the debt before continuing collection.\nAdditionally, under the CFPB\'s Regulation F (12 C.F.R. 1006.34), effective November 30, 2021, NES was required to provide a detailed validation notice containing specific disclosures about the debt, the consumer\'s dispute rights, and the collector\'s identity in a clear and conspicuous format.\n\nNES made initial contact with Complainant but failed entirely to include the legally required validation notice in that communication. Complainant responded with a formal written dispute and a comprehensive Validation of Debt demand on XXXX XXXX XXXX (USPS Certified Mail, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX), which specifically requested:\n\nFull debt validation including the name and address of the original creditor, the exact amount claimed, and the complete basis for the alleged debt;\n\nChain of Title with Securitization Documentation complete documentation establishing the unbroken legal chain of ownership from XXXX XXXX XXXX. to National Enterprise Systems, Inc., including:\n\nAny and all securitization records if the debt was pooled into an asset-backed security at any point in its history;\nThe trust agreement, pooling and servicing agreement (PSA), or any securitization vehicle into which this account may have been placed;\nDocumentation confirming that NES received a valid, legally enforceable assignment and not merely a data file or spreadsheet listing of this specific account; and\nConfirmation of who currently holds the beneficial interest in this debt, as securitization frequently separates legal title from beneficial ownership, potentially rendering the assignee\'s collection authority void; and\nA Bill of Sale Specific to This Account the actual executed purchase agreement demonstrating NES\'s legal right and standing to collect on XXXX XXXX XXXX including the specific account number, balance at time of sale, and executed signatures of authorized parties and specific dollar amount paid for the debt. \n\nNES answered none of it. Not the validation notice. Not the chain of title. Not the securitization documentation. Not the bill, not the purchase price of the debt. Not a single document was produced in response to Complainant\'s lawful demand. This is not a partial response it is a complete and deliberate refusal to substantiate the legal basis for collection.\n\nWhy Securitization Matters Here\nWhen a credit card debt is securitized pooled with other debts and sold to investors through a trust or special purpose vehicle the chain of legal ownership becomes critically important. If XXXX XXXX XXXX. securitized this account at any point, the following questions arise:\n\nDid XXXX retain legal authority to assign the debt to NES, or had beneficial ownership already passed to a securitization trust?\nDoes NES hold a valid, enforceable assignment, or merely a purchase of data with no accompanying legal title?\nCan NES legally collect on a debt whose beneficial interest may be held by unknown third-party investors?\nWithout complete securitization documentation, NES cannot establish legal standing to collect. A debt collector that cannot prove it owns or is legally authorized to collect a specific debt has no lawful basis to report it to consumer reporting agencies, demand payment, or take any collection action whatsoever.\n\nACA International Code of Ethics Violation\nNES, as a professional debt collection agency, is presumed to operate under the ACA International Code of Ethics, which requires member agencies to:\n\nDeal honestly and fairly with consumers;\nComply fully with all applicable federal and state laws; and\nRespond to consumer disputes in a timely, transparent, and lawful manner.\nNES\'s complete non-response to a formally delivered, certified mail validation demand over a period of six months constitutes a direct violation of these professional ethical obligations, independent of and in addition to its statutory violations.\n\nAs of the date of this filing, more than six months after assignment, NES has never fulfilled its statutory validation obligation. Collection activity has continued throughout. This constitutes an independent, per se violation of the FDCPA made willful by NES\'s complete non-response to a formally delivered, certified mail demand that explicitly identified every document required.\n\nViolation 2 Continued Collection After Written Dispute Without Providing Verification\n15 U.S.C. 1692g(b)\n\nComplainant\'s formal dispute letter of January 20, 2026 (USPS Certified Mail, Tracking No. 9589 9710 5270 0986 2257 15) constitutes a timely written dispute within the meaning of the FDCPA. Upon receipt of that dispute, NES was required to:\n\nImmediately cease all collection activity; and\nObtain and mail written verification of the debt before resuming any collection efforts.\nNES did neither. Collection activity continued. No verification was ever provided. This is a direct, documented, and willful violation of 15 U.S.C. 1692g(b).\n\nViolation 3 False Representation of the Character, Amount, or Legal Status of the Debt\n15 U.S.C. 1692e and 1692e(2)(A)\n\nNES has reported and/or continued to pursue collection on a debt whose character, amount, and legal status are all in active dispute. The alleged balance of $1,842.64 has never been validated. The legal basis for NES\'s authority to collect including its chain of title and securitization standing has never been established. Representing this debt as valid, collectible, and accurately stated without providing any verification or documentation of legal standing constitutes a false and misleading representation under the FDCPA.\n\nViolation 4 Communicating Credit Information Without Disclosing Disputed Status\n15 U.S.C. 1692e(8) | XXXX 2 Credit Reporting Resource Guide (CDIA)\n\nNES has communicated, or caused to be communicated, credit information regarding this account to consumer reporting agencies without disclosing that the debt is disputed by the consumer. This is an independent violation of the FDCPA, regardless of whether the underlying debt is valid.\n\nFurthermore, under the XXXX 2 Credit Reporting Resource Guide the industry-standard data reporting format maintained by the Consumer Data Industry Association (CDIA), to which NES as a data furnisher is contractually and legally bound NES was required to:\n\nApply an "XB" compliance condition code to this account, flagging it as actively disputed by the consumer;\nReport the correct account status code reflecting the unverified and disputed nature of the debt; and\nRefrain from reporting any balance on a debt it cannot substantiate through a valid chain of title, securitization documentation, and account-specific bill of sale.\nNES\'s failure to comply with Metro 2 reporting standards while simultaneously continuing to report damaging information on a 72-year-old elder consumer\'s credit profile constitutes a violation of both the FDCPA and NES\'s own data furnisher obligations under its contractual agreements with the consumer reporting agencies.\n\nViolation 5 Unfair and Unconscionable Collection Practices\n15 U.S.C. 1692f | Regulation F, 12 C.F.R. 1006\n\nThe use of unverified, disputed debt information on a debt whose legal ownership has never been established through chain of title or securitization documentation to damage the credit profile of a XXXX-year-old elder consumer managing fixed-income financial pressures and serious health challenges constitutes an unfair and unconscionable means of collecting a debt under 15 U.S.C. 1692f and Regulation F.\n\nViolation 6 Failure to Respond to Formal Notice of Intent\n15 U.S.C. 1692 et seq. | Regulation F, 12 C.F.R. 1006 | ACA International Code of Ethics\n\nOn or about XXXX XXXX XXXX, Complainant mailed a formal Notice of Intent to File Regulatory Complaints to NES via USPS Certified Mail (TXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX That notice explicitly demanded:\n\nImmediate deletion of all unverified tradelines;\nCessation of all collection activity; and\nComplete debt validation including chain of title, securitization documentation, and bill of sale.\nThe notice was successfully delivered. NES received it and chose not to respond. No letter. No phone call. No communication of any kind was returned to Complainant. For a professional debt collection agency operating under federal law, Regulation F, XXXX 2 standards, and a professional code of ethics, the deliberate non-response to a formally delivered legal notice is not an administrative oversight it is a conscious choice to ignore a consumer\'s lawful rights.\n\nIV. DOCUMENTED HARM TO ELDER CONSUMER\nAs detailed in primary Case No. 260421-31656614, Complainant\'s credit score has collapsed from a 780 median reflecting decades of responsible financial management to a current median score of 571, a catastrophic drop of more than 200 points. NES\'s inaccurate reporting of an unverified, disputed debt without disclosure of its disputed status and without compliance with XXXX 2 reporting standards is a direct and identifiable contributing cause of this damage.\n\nFor a XXXX-year-old elder consumer managing fixed-income financial pressures and serious health challenges, this credit damage is not an inconvenience. It is a crisis that affects access to credit, housing eligibility, insurance premiums, and basic financial dignity.\n\nV. STATUTE OF LIMITATIONS PRESERVATION NOTICE\nComplainant expressly files this supplemental complaint to preserve all rights under the FDCPA\'s one-year statute of limitations pursuant to 15 U.S.C. 1692k(d).\n\nTriggering date of dispute: XXXX XXXX XXXX\nFDCPA filing deadline: XXXX XXXX XXXX\nDate of this supplemental complaint: XXXX XXXX XXXX\nAll FDCPA claims against National Enterprise Systems, Inc. are timely and fully preserved.\n\nVI. RELIEF REQUESTED\nComplainant respectfully requests that the CFPB:\n\nConsolidate this supplemental complaint with primary Case XXXX XXXX for coordinated investigation, while maintaining independent tracking of NES\'s FDCPA violations;\n\nOrder NES to immediately cease all collection activity on AccounXXXX XXXX XXXX;\n\nOrder NES to immediately delete all tradelines related to this account from XXXX, XXXX and XXXX with written documentary proof of deletion provided to Complainant within 15 days;\n\nOrder NES to produce complete debt validation as required by 15 U.S.C. 1692g and Regulation F, including:\n\nThe original assignment agreement from XXXX XXXX XXXX;\nComplete chain of title with all securitization documentation, including any pooling and servicing agreement (PSA) or trust agreement; and\nAn account-specific, executed bill of sale;\nAssess civil money penalties against NES for willful violations of the FDCPA, Regulation F, and Metro 2 reporting standards;\n\nRoute this complaint to the CFPB\'s Office for Older Americans for priority review; and\n\nRefer this matter to the XXXX Attorney General\'s Elder Justice Unit and Consumer Protection Section for concurrent investigation of NES\'s conduct under Ohio consumer protection and elder financial abuse statutes.\n\nSettlement Demand NES\nIn lieu of protracted regulatory proceedings, Complainant demands from National Enterprise Systems, Inc.:\n\n(1) Immediate cessation of all collection activity with written confirmation;\n\n(2) Immediate deletion of all tradelines from all three CRAs with written confirmation and Metro 2 compliant reporting;\n\n(3) Production of complete chain of title, securitization documentation, and account-specific bill of sale;\n\n(4) Complete dismissal of this account with prejudice meaning this alleged debt is permanently extinguished, NES waives all rights to collect, and no future legal or collection action may be initiated against Complainant on this account or any derivative thereof, by any party, in any jurisdiction, at any time;\n\n(5) A binding written covenant that Account XXXX XXXX and any alleged balance, claim, or derivative thereof shall not be sold, assigned, transferred, exchanged, gifted, or conveyed in any form to any other individual, entity, collection agency, law firm, debt buyer, trust, securitization vehicle, or third party of any kind, now or in the future. Any attempt to transfer this account following the execution of this settlement shall be considered a material breach and subject to immediate legal action; and\n\n(6) Monetary compensation of $1,000 in statutory damages under 15 U.S.C. 1692k for willful FDCPA violations \n\nwithin 30 days of this filing.\n\nFailure to comply with all six demands within 30 days will be construed as NES\'s election to proceed to full regulatory enforcement, civil litigation, and concurrent state agency action all of which Complainant is fully prepared to pursue.\n\nVII. SUPPORTING DOCUMENTATION\nExhibit A CFPB Primary Complaint Case XXXX XXXX XXXX XXXX XXXXnExhibit B Demand for Accurate Credit Reporting / Dispute Letter and Validation of Debt Demand, XXXX XXXX XXXX\nExhibit C Notice of Intent to File Regulatory Complaints, XXXX XXXX XXXX (with USPS Certified Mail receipt, Tracking XXXX XXXX XXXX XXXX XXXX XXXX XXXX\nExhibit D Government-issued identification\n\nVIII. CERTIFICATION\nI, Richard XXXX XXXX XXXX XXXX, declare under penalty of perjury that the foregoing is true and correct to the best of my knowledge, information, and belief. I am the consumer identified above, I am acting Pro Se, and I have personal knowledge of all facts stated herein.\n\nSignature: XXXX XXXX XXXX XXXX e-signed\nPrinted Name: XXXX XXXX XXXX XXXX XXXX \nDate: XXXX XXXX XXXX\n\nIX. CLOSING STATEMENT\nNational Enterprise Systems, Inc. has had six months to do what the law requires. Six months to send a validation notice. Six months to produce a chain of title. XXXX months to provide securitization documentation. XXXX months to produce a bill of sale. XXXX months to apply a XXXX 2 dispute flag. XXXX months to respond to a written dispute. XXXX months to answer a formal Notice of Intent.\n\nThey chose silence instead.\n\nThat silence has a cost measured in XXXX credit score points lost, in financial opportunity destroyed, and in the dignity of a XXXX XXXX consumer who fought back methodically, lawfully, and without wavering when most would have walked away. This is what NES hopes the majority of consumers will do. In fact, it Is the backbone of the debt collection industry. This complainant is not walking away.\n\nConcurrent referrals directed to:\n\nCFPB Office for Older Americans referencing Case XXXX XXXX XXXX XXXX XXXX XXXX Unit & Consumer Protection Section\XXXX Department of Aging'

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation