Consumer complaint received 2025-03-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: ENCORE CAPITAL GROUP INC.
State: MD

Complaint narrative:
RE : Account Number : XXXX I am writing in response to your letter dated XX/XX/year>2025, which was a response to my Notice of Intent to Arbitrate. While your letter acknowledges receipt of my previous correspondence, it fails to address the actual legal concerns raised in my original notice. 

In my original correspondence, I raised specific and substantive concerns regarding the legal standing of your companys attempt to collect this debt. More specifically, I challenged your false claims of your intent to take legal action, which I identified as a false and misleading statement made in direct violation of the Fair Debt Collection Practices Act ( FDCPA ), including but not limited to 1692e ( 5 ) and 1692e ( 10 ).

Your companys threat of legal action directly contradicts the binding arbitration clause set forth in the original credit card agreement issued by XXXX XXXX That clause clearly states that either party may elect arbitration for any dispute arising out of the account. Under the Federal Arbitration Act ( 9 U.S.C. 1-16 ), once arbitration is elected, all disputes must be resolved in that forum. Your continued references to potential litigation are therefore knowingly false and constitute deceptive collection practices under FDCPA 1692e ( 5 ) and 1692e ( 10 ).

Additionally, I requested the immediate deletion of the account from my consumer credit reports based on your companys violations and your failure to validate the debt in accordance with FDCPA 1692g ( b ). Your response did not include a signed agreement or a chain of assignment from the original creditor.

Since you have identified yourselves as the current owner of this alleged debt, you have assumed both the rights and obligations under the original agreement, including the binding arbitration clause. However, under Uniform Commercial Code ( UCC ), Article 3, a 'holder in due course ' acquires certain immunities from defenses that might otherwise be raised. Because you purchased a defaulted/charged-off account, you had notice it was overdue at the time of purchase. This disqualifies you from holder-in-due-course status under UCC 3-302 ( a ) ( 2 ) and makes your company simply an Ordinary Holder. Without this status, you are subject to all defenses I may assert under UCC 3-305 ( a ) ( 2 ), including lack of standing, failure to validate, and improper collection practices. Therefore, your purchase does not automatically grant you incontestable rights, and your continued collection attempts and credit reporting constitute legally challengeable actions.

This letter serves as a final demand that you immediately and permanently delete this account from all consumer reporting agencies, as you have failed to validate the debt, and your ongoing conduct has resulted in reputational harm and regulatory violations.

Your failure to meaningfully respond to my original letter is not only legally insufficient but suggests deliberate avoidance of your statutory and contractual obligations. This is your final opportunity to resolve this matter amicably and avoid further escalation. If you fail to comply with these demands, I will elect to proceed with initiating arbitration and consider seeking statutory damages for each identified violation under 15 U.S.C. 1692k and 15 U.S.C. 1681n.

Company response to consumer: Closed with non-monetary relief