Consumer complaint received 2023-02-23 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: Velocity Portfolio Group
State: IL

Complaint narrative:
Dear Sir/Madam, I am writing to file a complaint against CKS Prime Investments LLC for their illegal and unlawful debt collection practices. I have new evidence to support this complaint, including a letter from the original creditor, XXXX XXXX XXXX XXXX XXXX, which states that the debt in question was canceled due to fraud, and despite having been informed of this fact, they persisted in their collection efforts and reporting the alleged debt to credit reporting agencies. Their behavior violates several codes of the Fair Debt Collection Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ). 

As mentioned earlier, the relevant evidence, in this case, is a letter from the original creditor, XXXX XXXX XXXX XXXX XXXX, which states that a notice of dispute was received from XXXX on XX/XX/2022, in which I claimed identity theft. An investigation was conducted, and it was determined that I was not liable for the account. As a result, the tradeline was removed from my credit report, and the account was closed due to fraud, with the balance canceled. Despite this, CKS Prime Investments LLC continued to collect the debt and report it to credit reporting agencies. 

CKS Prime Investments LLC violated Section 1681s-2 ( a ) ( 1 ) ( A ) of the FCRA, which requires furnishers of information to credit reporting agencies to have policies and procedures in place to ensure the accuracy of the information provided. They also violated Section 1681s-2 ( a ) ( 3 ), which requires furnishers of information to investigate disputes raised by consumers and correct any inaccuracies found. In this case, the Bank investigated the dispute raised by me and confirmed that the account was due to identity theft, and the Bank confirms that the account had been closed due to fraud and the balance canceled. Despite this, CKS Prime Investments LLC continued to collect the debt and report it to credit reporting agencies. 

CKS Prime Investments LLC also violated Section XXXX07 ( 2 ) ( A ) and Section 807 ( 10 ) of the FDCPA. Section 807 ( 2 ) ( A ) prohibits debt collectors from making false, deceptive, or misleading representations in connection with the collection of a debt. Section 807 ( 10 ) prohibits debt collectors from using unfair or unconscionable means to collect a debt. Continuing to collect a debt that had been canceled due to fraud and reporting the debt to credit reporting agencies even after the account had been closed can be considered unfair or unconscionable means of debt collection.

In addition to these violations, CKS Prime Investments LLC also engaged in prohibited conduct under Section 807 ( 2 ) ( a ) and Section 807 ( 5 ) of the FDCPA by falsely representing the character, amount, or legal status of the debt and threatening to take action that can not legally be taken or that is not intended to be taken. Their behavior has caused me significant emotional distress and anxiety, and I have made multiple attempts to resolve this matter with them, including sending written disputes and requesting verification of the debt. However, they brushed my complaints off with inadequate investigation and failed to provide me with the process they followed while investigating. They continue to report the alleged debt even right now! 

I am requesting that the Consumer Financial Protection Bureau investigate this matter and take appropriate action against CKS Prime Investments LLC for their violations of the FDCPA and FCRA. Specifically, I request that they be ordered to refund all the money they collected, remove all inaccurate information related to this debt from my credit report, and be civilly held accountable to pay damages for any harm caused by their illegal and unlawful collection and reporting of the debt. 

Thank you for your time and attention to this matter. 

Sincerely, XXXX XXXX

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