Consumer complaint received 2025-07-28 00:00:00
Product: Debt collection — Rental debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: MI

Complaint narrative:
In XX/XX/XXXX, I ended my apartment lease early and offered to settle the disputed move-out charges for {$300.00}. The apartment management accepted this offer and provided a written settlement letter confirming the revised balance. However, due to a delay on my part in returning the signed agreement, the apartment forwarded the full ( disputed ) balance to Fair Collections & Outsourcing ( FCO ) for collection. 

After learning the account had been sent to collections, I contacted the apartment management again to reiterate my willingness to pay the agreed-upon {$300.00}. They advised me to wait for a call from the collection agency. Unfortunately, I never received any communication from FCO. 

I first became aware of the collection account only when it appeared on my credit report in late XXXX XXXX XXXX months after the account was reportedly opened in XX/XX/XXXX. The reporting included an incomplete account number and an incorrect business address, which differed from the one later used in FCOs correspondence. I had not received any prior notice or debt validation before this negative report appeared. 

On XX/XX/XXXX, I sent a debt validation request via certified mail requesting : A detailed breakdown of the total amount claimed and how it was calculated The full name and contact information of the original creditor A copy of the original lease agreement and any itemized list of damages or charges claimed Proof that FCO was authorized to collect the debt, including the chain of assignment FCO responded only after receiving this request by providing a copy of the lease agreement and a resident ledger. 

On XX/XX/XXXX, I sent a formal dispute letter to FCO, which included : A copy of the original settlement letter from the apartment manager Documentation showing that several charges ( e.g., carpet replacement fees ) had been cancelled In that letter, I stated that I was willing to pay the {$300.00} immediately, contingent upon written confirmation that : The {$300.00} payment would be accepted as payment in full The collection account would be deleted from credit reports ( pay-for-delete ) Despite these efforts, FCO removed the dispute status on XX/XX/XXXX, re-verified the full original balance, and continued reporting the account without notifying me or allowing time to respond. This action caused a significant drop in my credit score. 
On that same day, I received a call from an FCO agent asking how I planned to pay the balance. I asked her to thoroughly review the documents I had already sent multiple timesdelays that occurred due to FCOs use of an incorrect address and internal routing issues ( documented by certified mail and return receipts ). The agent consulted with her manager and then informed me that the case was now under active investigation, and I should expect a response within XXXX days.

However, despite that statement, FCO updated the account status to unpaid that same daybefore completing the investigation or receiving any response from me. 

Just XXXX business days later, the same agent called again and stated that the original creditor refused to honor the prior {$300.00} settlement and asked how I wished to proceed. 

On XX/XX/XXXX, I received XXXX written response stating : This office received your dispute and pursuant to our obligations under the Fair Credit Reporting Act has conducted an investigation of your account. We have found the account to be reported correctly and will continue to report it... 

This letter failed to address any of the supporting documentation I had previously submittedsuch as the settlement agreement, the cancellation of certain charges, or the communication history. Instead, it simply reaffirmed their reporting position and warned that they were not required to respond to multiple identical requests. 

In response, I sent a detailed follow-up letter ( included with this complaint ), in which I stated : I am writing in follow-up to your letter regarding Account # XXXX, which was originally related to a disputed balance from my previous apartment residence. I acknowledge receipt of your response stating that the account has been reported correctly following your investigation. However, I respectfully disagree with the conclusion of your review and am requesting further reconsideration in light of important facts In that letter, I reiterated that the apartment had accepted my {$300.00} settlement offer ( which I still intended to pay ), requested a pay-for-delete arrangement, and asked for reporting to be paused during review. I also pointed out that FCO never provided documentation to justify certain charges, such as carpet replacement fees incurred after I vacated the unit.

To date, FCO has failed to : Properly validate the debt Acknowledge the previously agreed {$300.00} settlement Report the account accurately Provide fair notice or time to respond before materially altering the reporting status I remain committed to resolving this matter and request a fair review, correction of inaccurate credit reporting, and acknowledgment of the original settlement terms. My outreach has been consistent, documented, and made in good faith.

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