Consumer complaint received 2025-11-12 00:00:00
Product: Debt collection — I do not know
Issue: False statements or representation — Told you not to respond to a lawsuit they filed against you
Company: NAVY FEDERAL CREDIT UNION
State: CA

Complaint narrative:
XXXXXXXX XXXX XXXX  OF XXXX XXXX XXXX XXXX XXXX XXXX for potential violations of the Fair Debt Collection Practices Act ( FDCPA ) and Fair Credit Reporting Act ( FCRA ). I. Introduction and Summary of Allegations I am filing this formal complaint against XXXX XXXX XXXX based on its response communication reveals a potentially deceptive and unfair debt collection practice, specifically attempting to collect and report a debt that was previously unverified and deleted from my credit file by the original creditor, Navy Federal Credit Union ( " XXXX XXXX '' ). This action by XXXX XXXX XXXX, in conjunction with its assertion that the FDCPA is " inapplicable, '' suggests a systemic disregard for consumer protection laws and constitutes a grave risk of harm to consumers. This behavior threatens consumer financial stability, and I urge the XXXX to investigate this pattern of conduct. XXXX. Factual Background Prior Deletion by Original Creditor : Following a dispute, XXXX XXXX has already unverified and deleted the debt from my credit report. This action signifies that the original creditor could notor would notvalidate the debt, effectively erasing it from the official credit record. XXXX XXXX XXXX Notice of " Purchase '' : Despite the debt 's prior deletion by XXXX XXXX, XXXX XXXX XXXX claims to have purchased the debt it threatens to report it to credit bureaus. This action is predicated on an alleged assignment of rights from XXXX XXXX. Conflicting Information : A debt that has been deleted by the original creditor due to lack of verification can not be legitimately " sold '' or subsequently re-reported by a debt buyer. XXXX XXXX XXXX actions create conflicting information, which violates the Fair Credit Reporting Act ( FCRA ). A reasonable investigation by XXXX XXXX XXXX prior to purchase would have revealed the debt 's disputed and deleted status. Misrepresentation of FDCPA Applicability : XXXX XXXX XXXX statement, " XXXX XXXX XXXX has begun collection of Consumer 's account yet so the FDCPA is inapplicable, '' is a misrepresentation of law. A debt buyer 's actions to acquire, review, and send initial notices regarding an account are all part of the collection process and are governed by the FDCPA. The FDCPA applies to all debt collectors from the moment they initiate contact or undertake any collection activities. III. Legal Defenses and Analysis This situation presents several legal issues that a court would consider. Lack of Standing and Valid Assignment : XXXX XXXX XXXX likely lacks the legal right ( standing ) to collect on this debt. The purported assignment of rights from XXXX XXXX is suspect given the debt 's prior invalidation. As a debt buyer purchasing a portfolio of debts XXXX XXXX XXXX, bears the burden of proving a clear and legitimate chain of assignment for each individual debt. In the absence of this proof, any collection efforts are null and void. Violation of the Fair Credit Reporting Act ( FCRA ) : By purchasing and attempting to collect a debt known to be unverified and deleted by the original creditor, XXXX XXXX XXXX is violating its obligation to ensure the accuracy of credit reporting information. XXXX XXXX XXXX failure to conduct a reasonable investigation into the validity of the debt before attempting to collect on it demonstrates a willful disregard for consumer protections. Violation of the Fair Debt Collection Practices Act ( FDCPA ) : Misrepresentation of the Debt 's Status : XXXX XXXX XXXX attempt to collect a debt that was already deleted by the original creditor constitutes the use of false, deceptive, or misleading representations in connection with the collection of a debt, a clear FDCPA violation under 15 U.S.C. 1692e. Misrepresentation of Legal Rights : The false claim that the FDCPA is inapplicable is a deceptive practice intended to intimidate the consumer into believing they have no recourse against collection activity. IV. Request for Bureau Action Based on the foregoing, I request that the Consumer Financial Protection Bureau : Initiate an investigation into the practices of XXXX XXXX XXXX XXXX, and its relationship with original creditors like XXXX XXXX. Determine if XXXX XXXX XXXX is systematically violating the FDCPA and FCRA by acquiring and attempting to collect on debts that have been previously deemed unverified and deleted by the original creditor. XXXX XXXX to cease all collection activities on my account and any other similarly situated accounts and to formally confirm in writing that no collection or credit reporting will occur. Hold XXXX accountable for any consumer harm resulting from these illegal and deceptive practices. I have included copies of XXXX 's complaint response and any other relevant documentation to support this complaint. The egregious conduct of XXXX XXXX XXXX in attempting to pursue a debt already recorded with XXXX XXXX XXXX XXXX as " Unverified and Reported Deleted '' over XXXX times within the CFPB 's own records constitutes a blatant disregard for established consumer protections and regulatory oversight. This persistent re-activation of a demonstrably unsubstantiated debt, originally from Navy Federal Credit Union account # XXXX, is an act of flagrant deception and an abuse of process, warranting immediate and decisive administrative action. The claim by ARI that the Fair Debt Collection Practices Act is inapplicable is a transparent and unfounded legal assertion intended to circumvent federal law and improperly intimidate consumers, demonstrating a clear pattern of potential future harm that the Bureau is hereby noticed to prevent and remedy with the full extent of its authority. Respectfully, XXXX XXXX XXXX ( Consumer )

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation