Debt collection -- Took or threatened to take negative or legal action -- Complaint #16460328

Complaint Overview

Complaint ID: 16460328

Company: Southwest Recovery Services, INC.

Product: Debt collection

Sub-Product: I do not know

Issue: Took or threatened to take negative or legal action

Sub-Issue: Threatened or suggested your credit would be damaged

State: Maryland

ZIP Code: 20602

Date Received: 2025-10-08T12:00:00-05:00

Date Sent to Company: 2025-10-23T12:00:00-05:00

Company Response: Closed with explanation

Timely Response: Yes

Consumer Disputed: N/A

Submitted Via: Web

Consumer Narrative

subject : Improper debt collection, unvalidated sublease charges, repeated unauthorized ACH fees, and unexplained monthly charges by XXXX XXXX XXXX & its collection agency I am filing this complaint against XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX and its collection agency Southwest Recovery Services Collector for XXXX XXXX improper debt-collection practices, unauthorized ACH withdrawals, unexplained recurring fees, and failure to provide required lease documentation related to my sublease inside XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Background & Lease Terms I was a subtenant of XXXX XXXX XXXX XXXX renting and operating a nail-salon space inside XXXX for XXXX years XXXX XXXX lease terms : XXXX ( first term ) : I signed the lease and the accompanying handbook rules. XXXX ( second term ) : I signed only the renewal lease listing rent and term. I did not sign any updated handbook or policy rulebook for the XXXX term. During the XXXX lease term, XXXX XXXX required me to remodel the store at my own expense. The total remodeling cost was {$11000.00}, which I paid in full by cashed checks and money orders, as confirmed by my records and their receipts. In fact, I paid more than required over {$12000.00} total. Despite this, XXXX XXXX repeatedly billed me additional fees and outstanding balances every month for several years without any notice, explanation, or supporting documentation. COVID Hardship & Waivers During the XXXX pandemic, I briefly fell behind due to state shutdowns. I contacted XXXX, a XXXX XXXX representative, who confirmed in writing that late fees would be waived due to XXXX hardship. I resumed on-time payments after reopening, yet XXXXXXXX XXXX continued to add random fees and balances to my account even after the business stabilized. Unauthorized ACH Withdrawals & Hidden Fees Although I always paid rent by check or money order, XXXX XXXX attempted unauthorized ACH withdrawals from my bank account since XXXX, shown on Invoice # XXXX, where charges were labeled UNAUTH. In addition, XXXX XXXX repeatedly billed me {$35.00} ACH fees and other unexplained service fees, even though I never authorized electronic debits or signed any ACH agreement. These actions violate the Electronic Fund Transfer Act ( EFTA ) and Regulation E, and represent deceptive billing practices. End of Lease & XXXX XXXX My lease ended XX/XX/XXXX. XXXX XXXX representative XXXX XXXX instructed me by text to complete white-box restoration ( painting, signage removal, cleaning, patching, etc. ) for turnover to XXXX. I completed everything as directed, sent photos/videos on XX/XX/XXXX, and XXXX confirmed completion with a thumbs-up emoji, saying she had forwarded them to XXXX. XXXX manager inspected and accepted the space within XXXX days of my move-out, and XXXX has used the area since that time. After I moved XXXX XXXX never contact me until On XX/XX/XXXX, I received the phone call from collection agency, I called XXXX XXXX representatives to complain about it, no one taking my call. I emailed to both collections company and XXXX nails to disputes all those nonsense charge and request prove of documentation XXXX inspection, they keeps ignoring and continue threaten me and tell me to go back to XXXX to redo the XXXX XXXX and send them pictures again by XX/XX/XXXX XXXX. If not they the balance {$9500.00} still in the invoice. Its been over 3 months. Once XXXX accepted possession, XXXX XXXX no longer had any legal right to demand further work or impose additional fees. False {$9500.00} Claim & Failure to Validate Months later, XXXX XXXX and its collection agency began demanding {$9500.00} for incomplete XXXX XXXX I repeatedly asked both parties to provide : A XXXX XXXX report or proof of deficiencies ; Both signed leases ( XXXX and XXXX ) ; Any handbook or policy allegedly signed for the second term ; A full account ledger with details of all monthly fees and balances ; My {$2400.00} security-deposit accounting ; and Confirmation of COVID late-fee waivers. Neither XXXX XXXX nor the collection agency has ever produced these documents. Instead, they continue to pursue collection without proof, violating the Fair Debt Collection Practices Act ( FDCPA ) and Fair Credit Reporting Act ( FCRA ). Summary of Payments and Proofs Paid {$12000.00} total toward required remodel ; original balance was {$11000.00}. XXXX XX/XX/XXXX email confirms a {$1000.00} waiver. XXXX XXXX charged multiple monthly ACH Fees and unexplained balances over several years without notice or explanation. Invoice # XXXX shows XXXX attempts marked XXXX. Security deposit {$2400.00} from first term never refunded or itemized. XXXX work completed and approved by XXXX, and XXXX accepted the store. Requested Action by CFPB 1. Require XXXX XXXX XXXX and its collection agency to cease all collection and credit reporting until they provide complete validation and documentation of all charges. 2. Investigate XXXX XXXX unauthorized ACH withdrawals and recurring unexplained monthly fees as potential EFTA and Regulation E violations. 3. Require both parties to remove or correct any negative credit reporting and mark the account Disputed by Consumer. 4. XXXX XXXX Nails to return my {$2400.00} security deposit and formally recognize the COVID late-fee waivers. 5. Review both companies for unfair and deceptive practices against subleased salon operators inside XXXX XXXX

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This analysis is AI-generated based on publicly available CFPB complaint data. It does not constitute financial or legal advice.

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