Consumer complaint received 2026-01-20 00:00:00
Product: Debt collection — I do not know
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: National Credit Systems,Inc.
State: TX

Complaint narrative:
I am filing this complaint to formally report willful and unlawful debt collection practices by National Credit Systems regarding an alleged debt in the amount of {$3600.00}. 

This is my SECOND and FINAL FORMAL DISPUTE of this account. The company was previously notified that this alleged debt is disputed, yet it has continued collection efforts and has falsely reported this account to consumer reporting agencies as valid, causing measurable harm to my credit profile and financial standing. 

Their continued actions constitute knowing, willful, and malicious noncompliance with both federal and Texas state law. 

1. WILLFUL FALSE CREDIT REPORTING ( SECOND NOTICE ) Despite receiving prior written notice that this account is disputed, National Credit Systems has continued reporting this account to consumer reporting agencies without lawful validation.

This conduct violates : 15 U.S.C. 1692e False, deceptive, or misleading representations 15 U.S.C. 1681s-2 ( a ) Furnishing inaccurate or unverifiable information Texas Finance Code 392.202 ( a ) Failure to investigate a disputed debt Texas Business & Commerce Code 17.46 Deceptive Trade Practices Act ( DTPA ) Their continued reporting of disputed and unverifiable information is defamatory, deceptive, and has caused real financial harm.

2. DEBT WAS CHARGED OFF AND WRITTEN OFF FOR TAX PURPOSES The alleged original creditor charged off this account and took a tax deduction for the loss. Once a creditor charges off a debt and claims it as a tax loss, the obligation is extinguished as a consumer debt and converted into a tax-recovered asset.

No IRS Form 1099-C was ever provided to me, which is required when a debt is canceled or written off. 

Attempting to collect a debt that has already been written off and monetized through tax benefits constitutes : Unjust enrichment Double recovery Fraudulent collection activity Violations include : 15 U.S.C. 1692e ( 2 ) ( A ) Misrepresentation of legal status Texas Finance Code 392.304 ( a ) ( 8 ) Misrepresentation of debt status Texas Finance Code 392.304 ( a ) ( 19 ) False or deceptive means to collect 3. SALE OF ALLEGED DEBT FOR PROFIT The alleged original creditor sold this account as a bad-debt asset for profit. National Credit Systems is attempting to collect on an obligation that has already been : Charged off Written off Sold Monetized This constitutes : Deceptive trade practices Conversion Misrepresentation of ownership and legal status Violations include : 15 U.S.C. 1692e ( 2 ) ( A ) Texas Finance Code 392.304 ( a ) ( 8 ) Texas Business & Commerce Code 17.46 4. NOT THE ORIGINAL CREDITOR / NO PRIVITY OF CONTRACT I never entered into any contractual agreement with National Credit Systems. They are a third-party debt collector with no privity of contract. 

They have failed to provide any authenticated : Assignment agreement Chain of title Proof of lawful transfer Accounting ledgers proving ownership This violates : 15 U.S.C. 1692g Failure to validate Texas Finance Code 392.202 ( d ) Failure to provide verification Texas Finance Code 392.303 ( a ) ( 2 ) Attempt to collect unauthorized charges 5. DUPLICATE AND FALSE CREDIT REPORTING This alleged account is appearing as a duplicate collection entry, which misrepresents the character, amount, and legal status of the debt.

Violations include : 15 U.S.C. 1692e ( 2 ) ( A ) 15 U.S.C. 1681s-2 ( a ) Texas Finance Code 392.304 ( a ) ( 8 ) Texas Finance Code 392.304 ( a ) ( 19 ) 6. FAILURE TO INVESTIGATE AND CEASE COLLECTION AFTER DISPUTE Despite written notice of dispute, National Credit Systems : Continued collection efforts Continued credit reporting Failed to provide lawful validation Failed to cease communications Violations include : 15 U.S.C. 1692c ( c ) Failure to cease communication 15 U.S.C. 1692d Harassing conduct Texas Finance Code 392.302 Harassment or abuse Texas Finance Code 392.301 ( a ) ( 3 ) Threatening or coercive conduct STATUTES VIOLATED Federal Law 15 U.S.C. 1692e False and misleading representations 15 U.S.C. 1692d Harassment or abuse 15 U.S.C. 1692c ( c ) Cease communication upon written notice 15 U.S.C. 1692g Failure to validate 15 U.S.C. 1681s-2 ( a ) False credit reporting obligations Texas State Law Texas Finance Code 392.202 ( a ), ( d ) Failure to investigate disputed debt Texas Finance Code 392.301 ( a ) ( 3 ) Threats or coercion Texas Finance Code 392.302 Harassment or abuse Texas Finance Code 392.303 ( a ) ( 2 ) Unauthorized charges Texas Finance Code 392.304 ( a ) ( 8 ) Misrepresentation of debt status Texas Finance Code 392.304 ( a ) ( 19 ) Deceptive collection practices Texas Business & Commerce Code 17.46 Deceptive Trade Practices Act ( DTPA )

Company response to consumer: Closed with explanation