Consumer complaint received 2024-11-15 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: Bounce AI, Inc.
State: FL

Complaint narrative:
1. Bounce AI failed to present a signed contract between XXXX or any current owner of the debt and the Consumer. The Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq., and Florida 's consumer protection laws require creditors or their agents to validate and verify the existence of a contractual obligation between the original creditor and the consumer. Without a signed agreement, there is no enforceable contract to support 2. Inconsistent Claimed Amounts The amount claimed by Bounce AI does not match the last known balance on the Defendants account. Under Florida 's Deceptive and Unfair Trade Practices Act ( FDUTPA ), 501.201 et seq., consumers are protected against unfair or deceptive practices. The Bounce A I must provide accurate, detailed documentation to support the amount claimed. Without clear evidence on how this amount was calculated, including itemizations and adjustments, the consumer challenges the accuracy of the debt claimed by the Bounce AI. 
3. Calculation of Amounts and Charge-Off Date Bounce AI has failed to demonstrate how the current balance was calculated versus the charged-off amount. Under FDCPA validation rules, a consumer has the right to request a clear accounting of any debt amount, including how interest and fees have been applied after the charge-off date. Bounce AI failure to provide such a breakdown violates the consumer rights under the FDCPA.

4. Lack of Assignment Documentation Bounce AI has not provided any evidence of the assignment of the debt, including a Bill of Sale or Assignment Document, to prove consumers legal standing to collect this debt or pursue litigation. Florida case law and federal consumer law require that any party attempting to collect on a debt provide clear evidence that they hold the right to collect. Failure to establish the chain of ownership of the debt is grounds for dismissal. 
5. Absence of Insurance Claim and Proof of Loss Bounce AI has not demonstrated that it filed any insurance claims or provided any proof of loss related to this account. In the absence of such claims, there is a lack of clarity as to whether Original debt holder or another party has already been reimbursed for this debt. Such evidence is necessary to determine whether the Original debt holder has incurred any recoverable loss.

6. Failure to Issue Form 1099-C Following Charge-Off The account in question was charged off by Tally on or around XX/XX/year>, yet has not issued the Defendant an IRS Form 1099-C. According to IRS regulations, creditors are required to issue a 1099-C form to the consumer within the same tax year in which a debt of {$600.00} or more is canceled or forgiven. This lack of 1099-C documentation raises questions about the legal ability Bounce AI to pursue this charged-off debt, as well as about potential double recovery, which may constitute an unfair debt collection practice under FDUTPA and the FDCPA. 

If Bounce AI does not present all of this information of proof XXXX XXXX has the right to pursue legal actions for damages under the FDCPA ( up to {$1000.00} per violation, plus attorney fees and costs ).

Company response to consumer: Closed with explanation