Consumer complaint received 2025-04-09 00:00:00
Product: Credit card — General-purpose credit card or charge card
Issue: Problem with a company's investigation into an existing problem — Difficulty submitting a dispute or getting information about a dispute over the phone
Company: Atlanticus Services Corporation
State: NY

Complaint narrative:
Account with XXXX Account ending is XXXX - Inaccurate and Misleading Credit Reporting Practices Warranting Complete Account Removal in Violation of the Fair Credit Reporting Act and Potentially the Truth in Lending Act I am writing to file a formal complaint against XXXX XXXX XXXX  XXXX regarding inaccurate and misleading credit reporting practices related to my credit card account. These practices violate the Fair Credit Reporting Act ( FCRA ), specifically 15 U.S.C. 1681i and 15 U.S.C. 1681s-2, and potentially the Truth in Lending Act ( TILA ). My original credit limit on this account was {$1500.00}. I have reviewed my credit reports with XXXX, XXXX, and XXXX and have noted significant discrepancies. The most egregious inaccuracy is the reported credit limit increase on or around XX/XX/XXXX, across all three major credit bureaus. I never requested nor accepted any offer for a credit limit increase. I have no record of any communication from XXXX offering such an increase, nor did I provide any consent, written or verbal, to raise my credit limit. At the time of this alleged offer, my account balance was approximately {$2800.00}, significantly over my established {$1500.00} credit limit. Adding to the confusion, a communication from XXXX XXXX XXXX, dated XX/XX/XXXX, explicitly states that my account had a credit limit of {$2900.00}. This figure is entirely inconsistent with my understanding and further contradicts the implied credit limit related to the alleged XX/XX/XXXX increase. Critically, XXXX themselves stated in a communication dated XX/XX/XXXX, that my account was permanently closed on XX/XX/XXXX, due to past due and over-limit history, making any subsequent credit limit increase illogical and without my consent. Furthermore, XXXX 's own website states a clear policy : " We do not accept Credit Limit increase requests, '' directly contradicting their claim of offering me one. I spoke with a representative on XXXX XXXX via phone and was told that perhaps you accepted a credit increase on the app by mistake. Furthermore, during a text message conversation with an XXXX representative on XX/XX/XXXX, the representative explicitly stated that there were no late payments being reported to the credit bureaus since XXXX of XXXX. This statement is a direct misrepresentation and a violation of the FCRA 's requirement for furnishers to provide accurate information. My credit reports from XXXX, XXXX, and XXXX all clearly show that XXXX has been reporting late payments on this account consistently from XX/XX/XXXX up until at least XX/XX/XXXX. Moreover, even though the last recorded late fee was assessed on XX/XX/XXXX, and the account was closed on XX/XX/XXXX, XXXX continues to report the account as currently late on my credit reports as of XX/XX/XXXX, which is factually incorrect for a closed account with no outstanding balance ( if applicable ) or a history that doesn't reflect recent delinquencies. Adding to their concerning behavior, when I inquired on or around about a goodwill adjustment for past accurate late payments resulting from a significant hardship a car accident resulting in XXXX and multiple XXXX I was informed that they are obligated to report accurate information and therefore could not grant my request. This rigid stance, in light of their own demonstrable reporting of inaccurate information regarding the credit limit increase and their false statements about the ongoing late payment reporting, reveals a clear double standard and a lack of good faith. This account is causing major harm to my credit history and credit report. Finally, I am deeply concerned about the significant and unauthorized increase in my account balance, which reached approximately {$2800.00}, far exceeding my authorized credit limit of {$1500.00}. I never requested nor authorized spending beyond my {$1500.00} credit limit to this extent, and furthermore, a portion of the charges contributing to this over-limit balance are charges that I am actively disputing as unauthorized. When I inquired via text message on XX/XX/XXXX, whether I had ever opted in or authorized this over-limit spending, XXXX 's response indicated that the inaccurate credit limit increase was done " systematically to bring your account current, '' further confirming their attempt to mask their own mismanagement and the presence of disputed charges. Moreover, in a subsequent text message response from XXXX on XX/XX/XXXX, XXXX explicitly stated : " We see that your XXXX XXXX  XXXX account is not enrolled in over limit protection program. '' This confirmation directly contradicts any potential justification for allowing my account balance to escalate so significantly beyond my authorized credit limit and further underscores the unauthorized nature of this overspending. My desired resolution is the complete removal of this entire XXXX account from my credit reports with all three major credit bureaus ( XXXX, XXXX, and XXXX ) due to the extensive and irrefutable inaccuracies, inconsistencies, and potentially illegal practices outlined above, including the presence of disputed charges contributing to the over-limit balance. The unreliable and contradictory nature of the information associated with this account renders it unfit for inclusion in my credit history. I also urge the CFPB to investigate XXXX 's inconsistent, misleading, and potentially bad-faith reporting practices, particularly in light of the significant hardship I experienced and the illogical actions taken on a closed account without my authorization. I also asked about a payment plan while in the XXXX and was told that XXXX does not have payment hardship plans. Finally XXXX claims that I was not enrolled in an over the limit protection, when in fact I was. I have attached screenshots of the text messages from XXXX confirming the account closure date and stating the {$2900.00} credit limit, as well as a screenshot of their website policy regarding credit limit increase requests, the text message confirming no over-limit protection, and copies of my credit reports showing the inaccurate information and notes from my calls with XXXX. I am also concerned because XXXX refuses to provide my with my account number so that I can dispute the account. I am prepared to provide further information as needed to assist with your investigation. 

Thank you for your time, XXXX XXXX

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation