Consumer complaint received 2019-05-03 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: KLS Financial Services, Inc
State: NC

Complaint narrative:
In XX/XX/XXXX, I signed a lease with XXXX XXXX XXXX XXXX at XXXX XXXX XXXX XXXX XXXX, NC XXXX ( XXXX.XXXX.XXXX ) with XXXX XXXX. We signed a lease that ended the following XX/XX/XXXX for a monthly rent of {$1300.00}. Toward the end of our lease, XXXX XXXX sent us a letter telling us that we were going to be month to month after our lease ran out, however, if we wanted to renew, they would be charging us a discounted rate of {$1200.00}. At the time we had considered resigning a new lease and requested a renewal. I, however, ended buying a house in the process and informed XXXX XXXX that our request for renewal would no longer be necessary. This is when they informed us that, in this request for renewal that we submitted, they supposedly included an addendum that extended our present lease for another twelve months, even though we had not signed a new twelve month lease. Later on they sent both me and XXXX XXXX and electronic copy of a new twelve month lease for us to sign through XXXX XXXX XXXX by XX/XX/XXXX. XXXX XXXX signed this lease. I did not. Without both of these signatures the lease is invalid. However, XXXX XXXX stated that since that renewal request had that addendum the electronic lease agreement didnt matter, that we were still legally liable for the twelve months. They provided us lease break options for a lease that wasnt fully signed and I told them we would not be paying for twelve months. That, for all intents and purposes, without a twelve month lease, we were still month to month. We stayed through the month of XXXX and XXXX and provided a 30 day notice to vacate, which was outline in the request for renewal form. I told them I would get a lawyer involved and they said, point blank, that a lawyer would cost more and that, if we didnt pay them, they would send me to collections for the amount and that I wouldnt find a place to live while it was on my credit report. Shortly after we moved out, KLS Financial Services, hired by XXXX XXXX XXXX   XXXX, reached out to me everyday, harassing me with phone calls trying to get me to pay this debt. Mind you, at the time, I thought it for twelve month charges of a lease I didnt sign. KLS didnt provide me a notice or details of the charges, just that I owed the amount. I told them that I disagreed with this claim and I would never pay for this debt. I have since lost my house due to financial struggle and have been unable to find a place to live since this has been on my credit report. So, in an attempt to regain my independence, despite my pride, I called KLS trying to settle the account to get it off my credit. I could not, and still can not, afford the full amount. I offered to pay half of the amount. The representative said they would get in touch with their consumer relations department and get back to me. Later that day, XXXX XXXX of KLS contacted me. She then proceeded to use a series of scare tactics to try and get me to pay the full amount. She said that my credit was the only one effected because I was listed as the primary applicant and threatened to move the collections to XXXX XXXX credit instead. She also said that settling an account doesnt remove a collections from your credit report and creditors still wont rent to me with a settlement on my credit report. I know this to be false because I have settled collections before and they have fallen off just fine and my score has increased since. When I mentioned that I disagreed with the collections because I didnt sign the lease, she said she had a copy of two leases with my identical signatures. I asked for a copy of those documents and she insisted that these documents had been sent to me already. They had not. I emailed her requesting these documents and this is how our email communication began. Throughout the email thread it became evident that KLS and Ms. XXXX did not have enough evidence to support the claim that I owed anything to XXXX XXXX. Even when they brought in evidence from their client, it was the documents that were false from two years. They made the claim that I owe them for XXXX and XX/XX/XXXX rent but that I also signed a twelve month lease through an addendum but that there also isnt an existence of a second lease and were also month to month. When I asked for detailed documents of the damages made to the apartment and the invoices of the contractors who completed the work, the only thing they supplied was the walk through paperwork. They refused to do a walk through with us and that could easily be falsified without the tenants present. Things are not adding up and XXXX XXXX XXXX XXXX and KLS Financial Services have been spouting falsehoods and can not seem to provide accurate evidentiary support to make the claim that I owe them this money and their behavior has been despicable.

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