Consumer complaint received 2024-08-07 00:00:00
Product: Debt collection — Medical debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: CREDIT WORLD SERVICES, INC.
State: MO

Complaint narrative:
I am submitting this complaint to highlight the inaccurate data reflected on my credit report due to the actions of XXXX XXXX XXXX XXXX XXXX, with ACCOUNT # XXXX, and the credit bureaus XXXX, XXXX, and XXXX. 
I never authorized the release of my medical information to CREDIT WORLD SERVICES INC. by SIGNATURE XXXX XXXX XXXX. This action constitutes a violation of the Health Insurance Portability and Accountability Act ( HIPAA ), as it involves the unauthorized disclosure of my protected health information ( PHI ) to a third-party, non-affiliated company without my consent.

Medical records are private and confidential, and releasing them without explicit authorization infringes upon my privacy rights. This breach fails to comply with the standards and provisions set forth in 45 CFR Parts 160, 162, and 164, which govern the protection and privacy of PHI. Consequently, this unauthorized disclosure not only breaches confidentiality but also subjects the responsible parties to potential legal consequences, including fines and penalties under HIPAA.

Additionally, I disputed the initial letter informing me that they had obtained my debt, and under 15 U.S.C. 1692g ( b ), I responded within the 30-day timeframe. I am including a copy of my dispute letter and the return receipt as evidence in this complaint. The company 's response failed to validate the debt in any way, shape or form, as required by the Fair Debt Collection Practices Act ( FDCPA ). They completely ignored my validation requests, which is a violation of 15 U.S.C. 1692g ( b ) and 15 U.S.C. 1692e, which prohibits false or misleading representations, including the threat to take action that can not legally be taken or is not intended to be taken.

I sent a follow-up letter, also attached with the return receipt, giving them a second opportunity to rectify the situation. Instead of providing the necessary validation, they threatened to report the account to all national credit reporting agencies, which constitutes a violation of my rights under the FDCPA and potentially under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2. This action not only disregards my dispute and validation request but also threatens to damage my credit without proper verification.

Additionally, under IRS rules, a charge-off is treated as gross or ordinary income, which is not permissible for inclusion on a consumer credit report. Thus, the reporting of charge-offs or account cancellations on my credit report is inaccurate, and I request their removal.

Under 15 U.S. Code 1681, Congress underscores the importance of accuracy and fairness in credit reporting, emphasizing consumer privacy. Consumer reporting agencies are mandated to establish procedures that protect the confidentiality and relevancy of consumer information. The erroneous data on my credit report represents a breach of these obligations, adversely affecting my creditworthiness. Specifically, 15 U.S. Code 1681a ( d ) ( 2 ) ( A ) ( i ) clarifies that a consumer report should not include information solely related to transactions or experiences between the consumer ( myself ) and the entity ( CREDIT WORLD SERVICES , INC. ) providing the report. Therefore, XXXX, XXXX, and XXXX should not include payment history, including late payments and utilization details, in their reports, as this information pertains to transactions or experiences confined to the relationship between myself and CREDIT WORLD SERVICES , INC..

Under 15 U.S. Code 1681b ( a ) ( 2 ), consumer reporting agencies are permitted to furnish a consumer report only in accordance with the written instructions of the consumer. Neither the collection company nor the consumer reporting agencies XXXX, XXXX, and XXXX have my written consent to furnish this information. All forms of consentwhether verbal, non-verbal, written, or impliedhave been explicitly revoked. According to 12 CFR 1022.3, identity theft is defined as fraud committed or attempted using another persons identifying information without authorization. Therefore, any information added to my credit report without my written consent could be considered identity theft, and I demand its immediate removal.

15 U.S. Code 1681c prohibits consumer reporting agencies from including adverse items in consumer reports, other than records of criminal convictions older than seven years. This prohibition covers late payments, charge-offs, collections, and any other negative entries. Furthermore, under 15 U.S. Code 1681e, consumer reporting agencies are required to maintain reasonable procedures to ensure that consumer reports are used only for permissible purposes as outlined in section 1681b and to guarantee the accuracy of the information as per section 1681c. These agencies must verify the identity of users and ensure that information is not used for unauthorized purposes. By failing to comply with these standards, including the unauthorized inclusion of information and improper purposes for which consumer reports are furnished, the agencies are in direct violation of their compliance obligations. I demand that these agencies immediately rectify these violations and take corrective action to align with the legal requirements.

Under 15 U.S. Code 1681n, the law mandates accountability for willful noncompliance with credit reporting requirements. Any organization that deliberately fails to adhere to these regulations is liable to the consumer for damages, including a minimum of {$1000.00} per violation. This provision highlights the severity of willful misconduct. If the violation is proven to be intentional, which I believe is, the offending party faces substantial financial penalties. Multiple infractions or patterns of noncompliance further increase liability. Given that these companies have acknowledged their commitment to legal compliance in their consumer agreements, their repeated violations, especially after notification, demonstrate a blatant disregard for legal standards and consumer rights. Such willful neglect is both unlawful and financially punitive under this statute.

In reviewing the serious infractions outlined, it is clear that there have been at least five distinct violations of credit reporting and privacy laws, each contributing to a total potential liability of approximately {$5000.00} in statutory damages. However, the impact extends far beyond mere statutory fines. The financial, emotional, employment impact, insurance costs, inconvenience and time, loss of opportunities, and health costs have been substantial. These cumulative damages amount to approximately {$50000.00}, reflecting the severe and multifaceted impact of the violations. I request the immediate deletion of the account from the credit report, compensation of {$1000.00} per violation, and additional damages suffered. Immediate corrective actions are necessary to address these issues and provide appropriate compensation for the extensive harm suffered.

In light of the violations outlined, I am formally submitting this complaint to the Consumer Financial Protection Bureau ( CFPB ). As stipulated under 15 U.S. Code 6805, it is the Bureau 's responsibility to enforce compliance with these laws. This includes ensuring that all relevant parties, including CREDIT WORLD SERVICES , INC, SIGNATURE XXXX XXXX XXXX and the credit bureaus XXXX, XXXX, and XXXX, adhere to the regulations and correct any breaches. I expect the CFPB to take appropriate action to rectify these violations and uphold consumer rights as mandated by law.

Company response to consumer: Closed with explanation