Consumer complaint received 2021-02-15 00:00:00
Product: Debt collection — Other debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: FAIR COLLECTIONS & OUTSOURCING, INC.
State: CA

Complaint narrative:
Several days ago I called Fair Collections and Outsourcing because I recently received the contract, ledger, and moveout statement I requested from them in XXXX regarding XXXX XXXX XXXX. I did so because the amount in collections on my credit report seemed excessive and it didn't seem right to me. When I reviewed the documents given to me by XXXX XXXX my suspicions were correct. The amount owed is about {$1400.00} higher than it is supposed to be. 
The amount reported on my credit report and being collected by Fair Collections Outsourcing is {$1400.00} higher than would be legitimately owed because in XXXX XXXX XXXX own move out statement, XXXX XXXX is reversing the first month 's free rent and charging me for it. After reading the entire contract and all the documents provided to me by XXXX  XXXX, I didn't see any section or clause where it said they could do so. After reviewing all the documents once again, I called Fair Collections Outsourcing to which I will refer to as FCO from this point on. At first the person who answered the call was a XXXX XXXX. In the conversation I informed her of the nature of my dispute and asked her to clarify to me or point out where specifically it says XXXX XXXX can take back their first month 's free rent and charge me for it. XXXX asked to put me on mute while she looked this up. During the time I was on mute, the call " dropped. '' Once my call to FCO was lost I decided to call back immediately. I then spoke to a XXXX XXXX. I let her know I was just on the phone and the call was dropped so I was calling back. She said I was speaking to XXXX XXXX and she was the manager. XXXX then asked to help me instead and then asked what she could help me with. I asked XXXX the same questions as to why I was being charged for the first month 's rent when it was free and where in XXXX XXXXXXXX XXXX paperwork did it state they could do that? She then told me to hold on and tried to hand me off to XXXX and put me on hold for some time. I was a bit annoyed at this point because if she wasn't going to help me out, then why would she ask me how she could help me out? Why didn't she just transfer me from the beginning especially knowing that I was already speaking with her manager? After some time, XXXX came back on the line and began asking me to clarify the nature of my dispute. I repeated what I had asked XXXX as well as XXXX earlier. I asked why XXXX XXXXXXXX is reversing the first month 's free rent and where in their paperwork does it say they can do that? This is where the call started going south and I began feeling compelled to file this complaint against them. 
At the point of my conversation with XXXX where she begun to come up with reasons as to why I was being charged for something I was given for free, her first response to me was " that's just how it is. '' Obviously, " thats just how it is is not a valid reason. I told her that was just an assumption. I needed something in writing that said they could do so and so far, I hadn't received one. XXXX then put me on hold while she reviewed the contract. When she came back on the line, she tried to quote the early moveout clause which was section 11. I read it back with her and told her that clause did not say they can take back the first month 's free rent. Section 11 is a standard clause in rental agreements, and to summarize what the clause is for, the clause is to recover any actual damages caused by an early termination such as the remainder of rent owed for the remaining months on the lease agreement as well as any cleaning or repair costs incurred by the property management. Since the first months rent was free, there is no damages for that month, and they can not arbitrarily decide to charge me for it. 
During the conversation with XXXX a lot of things transpired which have now caused me to file this complaint. At one point of the conversation, XXXX was telling me her opinion of how can you expect a free months rent without completing the lease agreement? She repeated that sentiment a few times to which I was forced to finally correct her and say I am not expecting A free months rent, I am expecting the FIRST months rent as was part of XXXX XXXX apartments marketing ploy to get customers to rent with them. At this point XXXX tried to change tactics and offered to settle with me for {$970.00} total. Truth be told, I let XXXX know I was happy with the offer and I was willing to agree to deal but I requested the account be deleted from my report because of the discrepancies of the amount owed and the highly disputed nature on the legality of the debt at this pointy. XXXX flat out said no. There would be no deletion. I let her know that I could not in good conscience pay the settlement without the deletion knowing full well this account was being misreported for four years and an illegal amount was being collected especially when I had the proof in my hands and in XXXX XXXX own statement. Somewhere along the line XXXX then acknowledged my dispute had merit so she changed tactics and said I get what your saying, but even if they take out the first months rent charge all that would happen is the collection would be reported to the appropriate amount and you would still be saving a lot of money by taking the {$970.00} settlement now. I apologize in advance for that last quote as I may be paraphrasing a bit. XXXX had to repeat it and correct herself a few times for that statement to come out clear and understandable. Still, I know enough to understand that if an account has been misreported for four years illegally, they cant simply choose to fix it at this point. My score has been artificially lowered and jeopardized for all these years and I have suffered the consequences of XXXX XXXX and FCOs willful negligence by being denied credit and opportunities on numerous occasions. My actual damages greatly exceed XXXX XXXX apartments at this point. 
After some more banter back and forth with XXXX she stated in the call she was going to note down I refused to pay. This is where I finally realized she wasnt even trying to help but was just playing typical collector. I let her know those notes would be a complete lie as I am willing to take the {$970.00} settlement she offered but would require a deletion because under the F.D.C.P.A. and the F.C.R.A. any debt being collected must be valid and this debt was not. Any account being reported on a credit report must be always accurate and this debt was not. She then started asking me if I was a collector and if I was in the business. The conversation went on for a bit more and I asked if I could speak to her compliance department. All she offered was to go back to XXXX XXXX and ask them about the nature of my dispute. She then said she didnt know when they would respond but that she would notify me once they did. 
As to you the C.F.P.B., I understand you are not my lawyers and can not act as such. But I would strongly suggest you look into FCOs business practices. I myself am not a lawyer and am far from a litigious person, but it is 2021 and I have enough of an education to be able to research consumer rights, tenant laws, and collection laws. In these phone calls I made to FCO, they broke several collection laws and comported themselves like the typical collectors of old who cared for nothing except to collect a debt regardless of what they had to do in order to collect. On numerous occasions they broke 807. False or misleading representations They did so by trying to collect a wrong amount. Their own move out statements show they are reversing my credit for the first months free rent without anything in writing saying they could do so. 

They also broke it when they said but even if they take out the first months rent charge all that would happen is the collection would be reported to the appropriate amount Its too late to try and correct four years of misreporting. 

They also broke 808. Unfair practices They did so by once again attempting to collect a wrong amount not authorized by the agreement. 

They also broke it by first trying to settle the debt with me instead of removing the erroneous and invalid debt from my credit report or taking my legitimate dispute back to their client from the beginning. 

Ultimately they showed their unclean hands and their willingness to circumvent the law if it benefits them. Because of this, I am no longer content to wait for FCO to get word back from their client. I am filing this complaint and I demand FCO removes this account from my credit report at once.

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