Consumer complaint received 2024-10-30 00:00:00
Product: Debt collection — Other debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Zions Debt Holdings
State: TX

Complaint narrative:
I am formally submitting a complaint against Zions Debt Holdings for their continued reporting of inaccurate and derogatory information on my credit report. Despite the fact that this account was paid in full and closed in XX/XX/XXXX, Zions Debt Holdings has knowingly and wrongfully continued to report it as outstanding. This has caused significant harm to my credit rating and financial standing. 

It is my understanding that under federal and Utah state law, debt collectors are obligated to provide accurate information to credit reporting agencies. Zions Debt Holdings actions in this case appear to be a willful violation of these laws, causing me undue financial and emotional distress. This conduct not only violates fair debt collection practices but also raises concerns of potential extortion. By reporting an erroneous debt that was paid years ago, it appears that they may be attempting to pressure me into additional, unjust payments to avoid further credit damage. 

I am aware that previous debt collectors operating within Utah have faced legal consequences for similar fraudulent actions and consumer rights violations. Numerous cases demonstrate that Utahs judiciary has penalized debt collection agencies that intentionally misrepresent accounts and engage in unethical practices with the intent to harm consumers. The case of Utah XXXX XXXX XXXX XXXX ( XXXX ) and other precedents underscore Utahs commitment to upholding consumer protections against abusive collection tactics. 

Zion Debt Holdings, based in Utah, appears to have adopted or assumed the debt accounts previously managed by XXXX XXXX. Unfortunately, their business practices raise serious ethical and legal concerns. Zion Debt Holdings has been reported to pursue payments on accounts that were already resolved and paid off through XXXX XXXX. They often refuse to accept account settlement letters from XXXX XXXX as proof, effectively ignoring valid documentation that these debts were satisfied. 

A disturbing pattern in their operations involves targeting older debts, often five years or older, in the hopes that customers no longer have the necessary records to confirm payment. This predatory tactic takes advantage of peoples lack of access to old paperwork and strains their finances by attempting to collect on debts that were already resolved. Additionally, Zion Debt Holdings has reportedly been inaccurately reporting these accounts to credit agencies, causing damage to peoples credit scores without legitimate grounds. 

Zion Debt Holdings, under the ownership of XXXX XXXX XXXX, has also been known to offer settlements on these falsely reported debts for a fraction of the balance, but these offers only come after theyve unjustly impacted credit records. Their approach raises significant concerns about fair debt collection practices and transparency. 

For your reference, I have attached a copy of the settlement letter I received from XXXX XXXX on XX/XX/XXXX showing the derogatory account was closed in good standing at that time. Since XX/XX/XXXX, I haven't received any correspondence from XXXX XXXX XXXX. I was only made aware of this fraudulent debt when it appeared on my credit report as an unpaid account. When I first called and spoke with them on XX/XX/XXXX to resolve the issue they denied having any affiliation with XXXX XXXX and claimed to have bought the debt from XXXX directly. This ALSO turned out to be a lie. XXXX XXXX and Zions Debt Holdings are run by the same XXXX buddies and share the same phone number and addresses. XXXX XXXX and XXXX XXXX. I want to bring the hammer down on these guys. 



If you research XXXX XXXX XXXX XXXX XXXX, a case from XXXX of XXXX, the facts to my experience with Zions Debt Holdings are almost verbatim.

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation