Consumer complaint received 2025-03-19 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: ResidentCollect, Inc.
State: TX

Complaint narrative:
After attempting to apply for a home for my family and I and being immediately denied prior to ever providing proof of income I began to feel like I had been scammed. I dug into the issue of course only to find that I had been denied due to a collection being held on my credit report by a 3rd party company, debt collector. On XX/XX/XXXX | reached out to the third party collector via email and followed up by hand delivering those emails to them at their front office the following day XX/XX/XXXX. I spoke with XXXX women in which one stated that she would be my agent for the case. Nearly XXXX weeks later nothing happened until XX/XX/XXXX the collection was removed however it was put right back on the following day XX/XX/XXXX, after realizing this I have again began the process over in submitting my disputes in which I have attached the entirety of my Email thread between myself and the the 3rd party agency. And as of today XX/XX/XXXX they have still failed to provide proof validating the debt including signed documentation of myself and the company to verify the legitimacy of the debt as well as fail to provide the necessary documentation to compliance with federal law I have attached my proof of the following attempts between myself and innovative recovery. 

Dear Innovative Recovery Inc, This letter serves as my second formal dispute regarding the inaccurate reporting of the following collection account on my credit report : Account Information : Account Name : INNOVATIVE RECOVERY INC Account Number : XXXX Original Creditor : XXXX XXXX  Date Opened : XX/XX/XXXX Balance : {$1000.00} Date Updated : XX/XX/XXXX High Balance : {$1000.00} Past Due : {$1000.00} Pay Status : >Collection< Remarks : >PLACED FOR COLLECTION< Estimated Removal Date : XXXX/XXXX In my previous dispute, I requested proof validating this debt, including signed documentation from myself and your company verifying the legitimacy of this debt. To date, you have failed to provide the necessary documentation in compliance with federal law. 

Legal Violations and Consumer Rights : Illegal Transfer of Debt The original creditor, XXXXXXXX XXXX, allegedly sold this debt to Innovative Recovery Inc. Under federal regulations, such a transfer without my authorization or proper notification is illegal and constitutes an unfair or deceptive practice under the Fair Debt Collection Practices Act ( FDCPA ).

15 U.S.C. 1692e ( 2 ) ( A ) : Prohibits false representation of the character, amount, or legal status of any debt.

15 U.S.C. 1692e ( 5 ) : Prohibits threatening to take any action that can not legally be taken.

15 U.S.C. 1692f ( 1 ) : Prohibits the collection of any amount unless it is expressly authorized by the agreement creating the debt or permitted by law.

CFPB Regulation : It is illegal to sell or transfer a debt without proper notification, as it may be considered an unfair, deceptive, or abusive act or practice.

FTC Guidelines : Selling or transferring a disputed or unauthorized debt is considered unfair and deceptive. 

Failure to Verify Debt Under 15 U.S.C. 1692g ( b ) of the FDCPA, I have the right to request verification of the debt. Since I previously requested full validation, which you have failed to provide, you are in direct violation of federal consumer protection laws.

Fair Credit Reporting Act ( FCRA ) Violations 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Requires furnishers to provide accurate and complete information to consumer reporting agencies.

15 U.S.C. 1681i ( a ) ( 1 ) ( A ) : Requires credit reporting agencies to conduct a reasonable reinvestigation of disputed information within 30 days.

15 U.S.C. 1681e ( b ) : Requires credit reporting agencies to follow reasonable procedures to ensure maximum possible accuracy of the information reported.

Demand for Immediate Action I am formally demanding that you take the following actions immediately : Remove this collection account from my credit report due to the illegal transfer and failure to validate the debt. 

Provide full verification of the debt, including original signed documentation, proof of ownership, and authorization of the sale. 

Provide written confirmation of the results of your investigation. 

Legal Consequences of Non-Compliance Failure to comply with this request within five ( 5 ) business days will result in the following actions : Filing formal complaints with the XXXX XXXX XXXX ( XXXX ), the Federal Trade Commission ( FTC ), the Consumer Financial Protection Bureau ( CFPB ), and other relevant regulatory authorities. 

Pursuing legal action for non-compliance, including seeking damages for any continued harm to my creditworthiness. 

I expect your prompt attention to this matter and a written response confirming the removal or verification of this account. Please provide me with an updated copy of my credit report reflecting the changes. 


Formal Dispute and Demand for Immediate Removal of Collection Account XXXX XXXX To XXXX I am writing to formally dispute the inaccurate reporting of the following collection account on my credit report : Account Name : INNOVATIVE RECOVERY INC Account Number : XXXX Original Creditor : XXXX XXXX Date Opened : XX/XX/XXXX Balance : {$1000.00} Date Updated : XX/XX/XXXX High Balance : {$1000.00} Past Due : {$1000.00} Pay Status : >Collection< Remarks : >PLACED FOR COLLECTION< Estimated Removal Date : XXXX/XXXX This account is being inaccurately reported, and I am disputing its validity for the following reasons : Illegal Transfer of Debt : It has come to my attention that XXXX XXXX sold this debt to Innovative Recovery Inc . Under federal regulations enforced by the Consumer Financial Protection Bureau ( CFPB ) and the Federal Trade Commission ( FTC ), this action is illegal because the debt was transferred without my authorization or notification. This constitutes an unfair or deceptive practice under the Fair Debt Collection Practices Act ( FDCPA ). 

15 U.S.C. 1692e ( 2 ) ( A ) : Prohibits false representation of the character, amount, or legal status of any debt. Selling the debt without proper authorization misrepresents its legal status.

15 U.S.C. 1692e ( 5 ) : Prohibits threatening to take any action that can not legally be taken. Continuing to report this debt or attempting to collect on it after an unauthorized sale is unlawful.

15 U.S.C. 1692f ( 1 ) : Prohibits the collection of any amount unless it is expressly authorized by the agreement creating the debt or permitted by law.

CFPB Regulation : It is illegal to sell or transfer a debt without proper notification, as it may be considered an unfair, deceptive, or abusive act or practice.

FTC Guidelines : Selling or transferring a debt that is disputed or unauthorized is considered unfair and deceptive.

No Verification of Debt : Under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g ( b ), I have the right to request verification of the debt. To date, I have not received any validation or sufficient documentation proving that this debt is accurate, valid, or legally collectible.

Potential FCRA Violations : Under the Fair Credit Reporting Act ( FCRA ), the following provisions are relevant to this dispute : 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Requires furnishers to provide accurate and complete information to consumer reporting agencies.

15 U.S.C. 1681i ( a ) ( 1 ) ( A ) : Mandates that credit reporting agencies conduct a reasonable reinvestigation of disputed information within 30 days.

15 U.S.C. 1681e ( b ) : Requires credit reporting agencies to follow reasonable procedures to ensure maximum possible accuracy of the information reported.

I am demanding the following actions be taken immediately : Immediate removal of this collection account from my credit report due to the illegal sale of debt. 
Full verification of the debt, including original documentation, proof of ownership, and authorization of the sale. 
Written confirmation of the results of your investigation. 
Failure to provide verification and remove this inaccurate account within XXXXive ( 5 ) business days will compel me to file formal complaints with the Federal Trade Commission ( FTC ), the Consumer Financial Protection Bureau ( CFPB ), and other relevant regulatory authorities. Additionally, I am prepared to pursue legal action for non-compliance, including seeking damages for any continued harm to my creditworthiness. 

Please investigate this matter promptly and provide a written response confirming the removal or verified status of this account. I expect an updated copy of my credit report reflecting the change. 

Thank you for your immediate attention to this matter.

Company response to consumer: Closed with explanation