Consumer complaint received 2025-12-21 00:00:00
Product: Debt collection — Rental debt
Issue: Threatened to contact someone or share information improperly — Talked to a third-party about your debt
Company: National Credit Systems,Inc.
State: TX

Complaint narrative:
National Credit Systems has responded multiple times using the same templated explanation without providing any new evidence, documentation, or analysis. Each response repeats that XXXX XXXX believes the balance is owed and that the dispute was forwarded to the credit bureaus. This does not constitute a lawful or reasonable reinvestigation. 

Under 15 USC 1681i a 1 A, a furnisher is required to conduct a reasonable reinvestigation of disputed information. Reissuing the same response without reviewing or addressing the substance of the dispute is a violation of this requirement. Their repeated boilerplate replies demonstrate that no reinvestigation is actually taking place. 

National Credit Systems has failed to provide documentation establishing their authority to collect or report. They have not produced a signed contract between me and their company, nor have they produced a valid assignment agreement transferring collection rights from XXXX XXXX to National Credit Systems. Without this documentation, they are furnishing information they can not verify, in violation of 15 USC 1681e b, which requires maximum possible accuracy in credit reporting.

Additionally, under 15 USC 1692g b, a debt collector must cease collection activity until proper validation is provided once a dispute is made. Continued reporting to credit bureaus without providing validation constitutes continued collection activity. Their reliance on an apartment move out ledger does not meet the definition of validation because it does not establish a legal relationship between me and National Credit Systems.

National Credit Systems is also engaging in unfair and deceptive practices by misrepresenting their authority. Under 15 USC 1692e, a debt collector may not falsely imply they have the right to collect a debt when such authority has not been proven. Repeatedly asserting authority without documentation is a material misrepresentation. 

Furthermore, under 15 USC 1681s 2 b, furnishers must review all relevant information provided by the consumer. My dispute specifically challenges authorization and ownership. Their responses ignore those issues entirely, confirming noncompliance. 

Under Texas law, this conduct violates the Texas Finance Code Section 392.202, which requires third party debt collectors to investigate disputes and correct inaccurate information. It also violates Texas Finance Code Section 392.304, which prohibits misrepresentation of the character, extent, or status of a debt and the use of deceptive means to collect or attempt to collect.

Their continued reporting without proof of authorization also constitutes an unfair practice under the Texas Deceptive Trade Practices Act Section 17.46, as they are representing rights and authority they have not substantiated.

At this point, National Credit Systems has demonstrated a pattern of willful noncompliance, not a good faith effort to investigate.

Company response to consumer: Closed with explanation