Consumer complaint received 2025-08-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CL Holdings LLC
State: TX

Complaint narrative:
Dear Jefferson Capital Systems , LLC, I am writing to formally dispute the fraudulent collection account ( Account XXXX ) with Regional Finance as the original creditor, reported by Jefferson Capital Systems , LLC, on my credit reports. This account was opened due to identity theft, and I did not authorize or incur this debt. This is my final attempt to have Jefferson Capital correct its records and notify all credit reporting agencies XXXX XXXX XXXX XXXX XXXX ) to permanently remove this account from my credit reports. Notably, this account was previously removed from my credit report, indicating prior acknowledgment of its fraudulent nature, yet it has been erroneously re-reported. Your failure to correct this error, despite prior disputes and clear evidence of identity theftincluding Experian email alerts confirming my Social Security number was found on the dark web ( copy enclosed ) has caused significant harm, including the denial of a housing application on XX/XX/XXXX, leading to financial losses from temporary hotel stays, homelessness, and additional debt. I demand immediate investigation and correction under the Fair Credit Reporting Act ( FCRA ), or I will pursue legal action for damages. The continued reporting of this fraudulent account has caused severe financial and personal harm, including : Denial of a housing application on XX/XX/XXXX which prevented me from securing a home. 
Financial losses from temporary hotel stays, costing approximately {$2000.00} Homelessness, resulting in emotional distress and financial instability. 
Additional debt incurred to cover living expenses due to the housing denial. 
These damages are directly attributable to Jefferson Capitals failure to correct its records and cease reporting this fraudulent account to credit bureaus, despite prior disputes and clear evidence of identity theft.

Under the FCRA, specifically 15 U.S.C. 1681s-2 ( b ), data furnishers like Jefferson Capital must conduct a reasonable investigation of disputes received from consumers or credit reporting agencies and correct or delete inaccurate information. The re-reporting of a previously removed fraudulent account further violates the FCRAs requirement to ensure accuracy. I have enclosed a [ police report/FTC Identity Theft Report, the XXXX  dark web alerts, and any prior correspondence confirming the accounts removal to substantiate that this account is fraudulent. 
The following case law supports the correction and deletion of fraudulent accounts : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) : The court held that furnishers must delete information that can not be verified as accurate. The prior removal of this account and the dark web evidence confirm its fraudulent nature. 
XXXX v. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) : The court ruled that furnishers violate the FCRA by failing to conduct a reasonable investigation into disputed accounts, particularly when identity theft is alleged. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) : The court found that furnishers are liable for failing to correct inaccurate information after a dispute, especially when evidence of identity theft is provided. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) : The court affirmed that furnishers must investigate and correct inaccurate information, and failure to do so can result in liability for damages caused by continued reporting. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) : The court emphasized that furnishers must act promptly to remove fraudulent accounts when supported by evidence like dark web exposure, with liability for actual and statutory damages. 

The evidence of identity theft, including the XXXX  dark web alerts, establishes that this account is not mine. Your continued reporting of this account has caused tangible harm, entitling me to statutory damages up to {$1000.00} per violation under 15 U.S.C. 1681n, as well as actual damages for credit denials, financial losses, and emotional distress from homelessness.

Company response to consumer: Closed with explanation