Consumer complaint received 2025-10-09 00:00:00
Product: Debt collection — I do not know
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: CA

Complaint narrative:
I am filing this complaint against Fair Collections & Outsourcing ( FCO ) for failing to comply with the Fair Debt Collection Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ) while continuing to report and collect on a disputed, unvalidated debt.

FCO is reporting a {$25000.00} collection account on behalf of XXXX XXXX XXXX, which appears on my XXXX XXXX XXXX credit reports. I previously filed a CFPB complaint requesting full validation of this debt pursuant to FDCPA 1692g ( b ). In my request, I specifically asked for : The bill of sale or forward flow agreement showing transfer of ownership or placement from XXXX XXXX XXXX to FCO ; The written authorization from XXXX XXXX XXXX granting FCO the right to collect and report ; The original signed lease or agreement associated with this alleged debt ; and An itemized accounting explaining the total balance of {$25000.00}, including any fees, penalties, and interest. 

In response, FCO admitted that it does not buy, sell, or own debt, but is merely acting as a third-party collection agency. However, the only documentation they provided were two email statements with general balance information no bill of sale, no assignment documentation, no lease agreement, and no proof of authorization to collect. 

FCOs limited response does not meet the validation standards required under 15 U.S.C. 1692g ( b ) or 12 C.F.R. 1006.34 ( c ) ( Regulation F ), which requires collectors to provide sufficient information to demonstrate ownership and legitimacy of the debt. A statement alone does not constitute proper validation when the collector can not show that they have been lawfully assigned the right to collect or report the debt.

Despite this failure, FCO continues to report the collection to the credit bureaus, which constitutes ongoing collection activity in violation of FDCPA 1692g ( b ). Under Daugherty v. Convergent Outsourcing , Inc., 836 F.3d 507 ( 5th Cir. XXXX XXXX credit reporting itself is considered a form of collection. 

Additionally, by furnishing unvalidated and disputed information to XXXX XXXX XXXX, FCO has violated FDCPA 1692e ( 8 ) ( communicating false or misleading credit information ) and FCRA 623 ( a ) ( 1 ) ( A ) ( furnishing inaccurate information ). The failure to investigate and verify after notice of dispute also constitutes a breach of FCRA 1681s-2 ( b ) ( duty to conduct reasonable reinvestigation ). 

Cease-and-Desist Demand : Pursuant to FDCPA 1692c ( c ), I am formally demanding that FCO cease and desist all collection activity and any further communication with me, including : Phone calls, letters, and emails ; Credit reporting or re-reporting to XXXX XXXX XXXX XXXX  XXXX and Any XXXX, transfer, or reassignment of this alleged debt to another agency. 

Until full validation is provided including a verifiable bill of sale, authorization letter, chain of title, and original contract all collection and reporting must stop immediately. 

Laws & Precedent Violated : FDCPA 1692g ( b ) : Continuing collection activity without validation FDCPA 1692e ( 8 ) : Reporting disputed debt as accurate FDCPA 1692c ( c ) : Failure to cease communication after written request FCRA 623 ( a ) ( 1 ) ( A ) : Furnishing inaccurate or unverifiable information FCRA 1681s-2 ( b ) : Failure to investigate after dispute notice 12 C.F.R. 1006.34 ( c ) : Inadequate validation content under Regulation F Daugherty v. Convergent Outsourcing, 836 F.3d 507 ( 5th Cir. XXXX XXXX : Credit reporting constitutes collection activity

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