Consumer complaint received 2024-02-17 00:00:00
Product: Debt collection — Other debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Lexington Capital Holdings LTD
State: MD

Complaint narrative:
I have a XXXX debt placed on my credit report for a service that was not disclosed to me and certainly XXXX I did not sing up for. 

Winning my first Real Estate auction bid on XX/XX/year>, my banks XXXX, XXXX and XXXX, were not lending Real Estate small businesses money for investments. 

I was told by a relative in banking to get a business line of credit, and their colleague referred me to Lexington Capital Holding LTD. 

On XXXX XXXX the initial agent from Lexington, I can not remember his name, called while I was driving. He explained their services which is helping clients and stated they can help me legally get the cash I needed with credit cards for a line of credit. He said I had to pay a 10 % fee and I had to agree verbally while recorded, so I did. 

The following day XXXX XXXX, an agent for the company said, I will not get a loan from banks, instead, what I needed was credit cards which will give me the line of credit. There is a fee of 10 % for the total amount of credit I received, with good credit I will have the funds to purchase my property, and do what I needed with 0 % interest rate for XXXX XXXX but I first have to docs sign a contract. 
I expressed my concerns on multiple occasions that I do not want additional credit cards on my name. This is not what I needed, what I need is a business line of credit or loan because I could apply for credit cards on my own. 
He said no banks would lend a new small business money. it is a risk, until I first establish a relationship with them by applying for the credit cards taking the cash out as a line of credit and paying it back on time over time. And, if I apply on my I will get a low balance of XXXX but with their help I will get between XXXX to XXXX. I asked how? He said they have programs in place to help clients. I then agreed and signed. 

The first card, XXXX XXXX, came in the mail. He said I can activate the card and use the card to pay the invoice. I did it and paid XXXX XXXX XXXX fee for a XXXX credit card. 
He said other cards should be there soon, I told him I would be away on mission on XXXX XXXX, so it would have to wait until I return. 
I asked XXXX XXXX, I am nearing paying off the fee, and I still have not been told the process to apply for the cash or how to turn these credit card to cash to close on my property. He then said they have a lawyer who has a loop hole and his fees are 10 % of the total credit amount an additional XXXX - XXXX. 
I got respectfully frustrated with his surprising non full-disclosure. 
I questioned him, this would not be enough money to purchase and rehab, if I have to pay XXXX in fees.This made no sense and would not work. 
XXXX XXXX called on or around XX/XX/XXXX, to ask if I received the cards. I reminded him I am in XXXX VA. He asked if anyone else lives with me they can open the mail activate the card and read the information on the card for me to pay the invoice. I refused and told him to wait until I return. 
I returned home and called the bank requested the line of credit on XXXX card. XXXX XXXX said the card does not have that option, and it must be requested during the application phase. 
I reached out to XXXX XXXX XXXX XXXX. and XXXX Bank and reported this sham/scam. XXXX XXXX investigated and refunded the money to the card. 

I reached out on or before XXXX XX/XX/year>, to XXXX XXXX XXXX they opened a case, checked my record, and found nothing delinquent on it, but later closed the case because Lexington did not respond or could not be reached. The agent told me to reopen a case or call back if I saw the company on my credit report. 
Then the invoices kept coming, warning letters now XXXX is on my credit report. Please put a stop to these types of businesses. How is this legal because the language is vague in the contract. There was nothing about acquiring credit cards with high balances and a legal loophole to cash it out.They covered that up with broad language. 
All conversations were by phone. I gave the best time to call but, I got calls from credit card companies and XXXX XXXX during work hours. It felt wrong, aggressively rushed and persistent and he even became belligerent and threatening.

Company response to consumer: Closed with explanation