Debt collection -- Attempts to collect debt not owed -- Complaint #18955891
Debt Collector Pursuing Invalid Debt Discharged by Original Creditor
Complaint Overview
Complaint ID: 18955891
Company: Rozlin Financial Group, INC.
Product: Debt collection
Sub-Product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-Issue: Debt was already discharged in bankruptcy and is no longer owed
State: Texas
ZIP Code: 77006
Date Received: 2025-11-30T12:00:00-05:00
Date Sent to Company: 2026-01-23T12:00:00-05:00
Company Response: Closed with explanation
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Risk Assessment
Risk Level: high
The complaint alleges attempts to collect a debt that was already deemed invalid and resolved in the consumer's favor by the original creditor. This directly implicates potential violations of the FDCPA and could lead to significant financial and credit damage if not addressed promptly.
Consumer Sentiment: frustrated
Topics: debt-collection, invalid-debt, fdcpa-violation, credit-card-debt, rozlin-financial-group, disputed-debt, bankruptcy-discharge
AI Analysis
This complaint describes a situation where Rozlin Financial Group, Inc. is attempting to collect a debt that the consumer states was already resolved in their favor by the original creditor (XXXX) due to a breach of contract. The consumer purchased services from XXXX, paid for them, but never received access. They disputed the charges with their credit card issuer, who agreed the services were not provided and resolved the dispute in the consumer's favor. Despite this, Rozlin Financial Group is now trying to collect the $420.00 balance. This is a serious issue because debt collectors are prohibited from collecting debts that are not legally owed, especially those that have been previously settled or found invalid. This pattern of attempting to collect debts that are disputed, invalid, or already discharged is unfortunately not uncommon in the debt collection industry, particularly with third-party collectors who may purchase old or questionable debt portfolios. The root cause likely lies in Rozlin Financial Group either acquiring a debt that was improperly placed for collection, or failing to conduct adequate due diligence to verify the debt's validity before attempting collection. For other consumers, this means it's crucial to understand your rights when facing debt collection. If a debt was discharged in bankruptcy, settled, or found invalid by the original creditor, a collector cannot legally pursue it. This situation highlights the importance of keeping meticulous records of all communications and dispute resolutions.
Consumer Narrative
Subject : Complaint : Invalid Debt Collection Attempt for Services Not Provided ( XXXX ) To the Consumer Financial Protection Bureau, I am submitting a complaint regarding an improper debt collection attempt by XXXX and the third-party collection agency pursuing an alleged balance of {$420.00}. I had XXXX case numbers with my credit card issuer. Case # XXXX, is for a charge of {$140.00}, billed on XXXX ; it was disputed and final on XX/XX/year>. Case # XXXX, is for a charge of {$140.00}, billed on XXXX ; it was disputed and final on XX/XX/year>. Case # XXXX, is for a charge of {$140.00}, billed on XXXX ; it was disputed and final on XX/XX/year>. These cases were officially closed on XX/XX/year> per my credit card issuer. The debt is invalid. XXXX failed to provide access to the services I purchased, constituting a breach of contract. I disputed the charges with my credit card issuer, and they were resolved in my favor due to lack of services rendered. Despite this, the account has been forwarded to collections. XXXX did not provide me access to my account after I paid for services. I emailed customer support multiple times and they offered me codes which were invalid each and every time. They also offered a specialist in XXXX hours, which in turn advised me there was no supervisor to assist me. The debt collector violated the FDCPA by contacting me and making false statements about the debt. This raises concerns regarding : Attempted collection of a disputed and invalid debt Failure to acknowledge my prior dispute Potential violations of the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) Please note I have filed a complained with the FTC. Please investigate this matter and ensure all consumer protections are upheld. I do not authorize the CFPB or any other agency to share my home address or phone number with XXXX or the collection agency. Please communicate with them using only my email. Also note the collection agency is using an incorrect address for me. I am not familiar with that address. Thank you for your assistance. XXXX XXXX
What You Should Do -- Consumer Action Plan
1. **Gather Documentation:** Collect all evidence of the original dispute with XXXX, the credit card issuer's resolution in your favor, and any communication from Rozlin Financial Group. This includes emails, letters, case numbers, and dates. 2. **Send a Debt Validation Letter:** Immediately send a certified letter with return receipt requested to Rozlin Financial Group demanding validation of the debt. State clearly that you dispute the debt and that it was previously resolved in your favor by the original creditor due to non-provision of services. Request proof of their right to collect and a full accounting of the debt. 3. **File a Formal Complaint:** File a complaint with the Consumer Financial Protection Bureau (CFPB) and the Federal Trade Commission (FTC), referencing your previous FTC complaint. Also, consider filing a complaint with the Texas Attorney General's office. 4. **Consult an Attorney:** Given the potential FDCPA violations and the complexity of discharged debts, consult with a consumer protection attorney specializing in debt collection harassment. They can advise on your rights and potential legal action.
Legal Context & Consumer Protection Laws
The Fair Debt Collection Practices Act (FDCPA) prohibits debt collectors from using deceptive or unfair practices, including attempting to collect debts that are not owed or are disputed. The Fair Credit Reporting Act (FCRA) governs how credit information is reported and allows consumers to dispute inaccurate information on their credit reports, which could be impacted if this invalid debt is reported. The complaint suggests potential violations of both.
Regulatory Insight
This complaint pattern, where debt collectors pursue debts already deemed invalid or discharged, is a recurring issue that the CFPB and FTC actively monitor. Companies like Rozlin Financial Group, especially those acquiring debt portfolios, must adhere to strict verification processes. Repeated violations can lead to significant enforcement actions, fines, and consent orders requiring substantial changes in business practices.
Resolution Likelihood
40%
State-Specific Consumer Protections
Texas has its own debt collection laws, often mirroring the FDCPA but sometimes offering additional protections. The Texas Department of Banking and the Texas Attorney General's office are key state agencies that handle consumer complaints related to debt collection.
Industry Comparison
Rozlin Financial Group's handling, as indicated by the 'Closed with explanation' response, is typical for many collection agencies when a dispute arises. However, the core issue of pursuing a debt that was already resolved in the consumer's favor suggests a potential lapse in their due diligence or internal processes, which is a common but serious failing within the industry.
Related Issues
Frequently Asked Questions
What should I do if a debt collector is trying to collect a debt I already paid or that was discharged in bankruptcy?
If a debt collector is pursuing a debt you believe is invalid, already paid, or discharged in bankruptcy, your first step is to gather all supporting documentation. This includes proof of payment, settlement agreements, or bankruptcy discharge orders. Next, send a formal 'debt validation letter' via certified mail to the collector. This letter should clearly state that you dispute the debt and request proof of their right to collect it, along with a full accounting. Do not admit to owing the debt. If the collector continues to pursue the debt after receiving your letter, or if they report it to credit bureaus, you should file complaints with the CFPB, FTC, and your state Attorney General's office. Consulting with a consumer protection attorney is also highly recommended, as they can advise on your rights and potential legal recourse under laws like the FDCPA.
What are my rights if a debt collector contacts me about a debt I don't owe?
Under the Fair Debt Collection Practices Act (FDCPA), you have significant rights. A debt collector cannot harass you, make false statements about the debt or their actions, or attempt to collect a debt that is not legally owed. If you receive a collection notice for a debt you don't owe, you should immediately send a written dispute letter (preferably via certified mail) to the debt collector within 30 days of their initial communication. This letter should state that you dispute the debt and request verification. If the debt was discharged in bankruptcy, you must provide proof of discharge. The collector must cease collection efforts until they provide you with verification. If they continue to contact you or report the invalid debt to credit bureaus, they may be violating the FDCPA and potentially the FCRA, and you may have grounds for legal action.
Should I file a complaint with the CFPB if a debt collector is harassing me?
Yes, filing a complaint with the CFPB is a crucial step if a debt collector is harassing you or engaging in unfair practices. The CFPB acts as a central repository for consumer complaints and uses this data to identify patterns of misconduct, inform its rulemaking, and pursue enforcement actions against companies. To file a complaint, visit the CFPB website (consumerfinance.gov) or call them. Be prepared to provide details about the company, the debt, the nature of the harassment, and any supporting documentation you have. While the CFPB may not resolve your individual complaint directly, your complaint contributes to broader oversight and can prompt investigations into the company's practices. It's also advisable to file complaints with the FTC and your state Attorney General.
What is Rozlin Financial Group's reputation for handling debt collection disputes?
Information on specific companies like Rozlin Financial Group can be found through consumer complaint databases such as the CFPB's complaint database. Analyzing these complaints can reveal patterns of behavior. While specific company reputations can vary, common issues raised against debt collection agencies often include attempts to collect invalid debts, failure to provide proper validation, and aggressive or misleading communication tactics. It's important to look for trends in complaints related to the specific issues you are facing, such as disputes over debt validity or prior resolutions.
What are the next steps if a debt collector ignores my dispute and continues to demand payment?
If a debt collector ignores your dispute and continues to demand payment, it's a strong indication of potential FDCPA violations. Your next steps should be to escalate your actions. First, ensure you have sent a formal dispute letter via certified mail and have proof of delivery. If they persist, file formal complaints with the CFPB, FTC, and your state Attorney General. Crucially, consult with a consumer protection attorney. Many attorneys offer free initial consultations and work on a contingency fee basis for FDCPA cases, meaning they only get paid if you win. They can send a demand letter on your behalf, negotiate with the collector, or file a lawsuit if necessary to protect your rights and potentially recover damages.
How can a debt collector trying to collect an invalid debt affect my credit score?
A debt collector attempting to collect an invalid debt can significantly harm your credit score if they report the debt to the credit bureaus. Even if the debt is ultimately proven invalid, its presence on your credit report can lower your score, making it harder to obtain loans, credit cards, or even rent an apartment. If the debt is reported as delinquent or in collections, it can remain on your credit report for up to seven years, negatively impacting your creditworthiness. It is therefore critical to dispute the debt immediately and ensure it is removed from your credit report if it is indeed invalid or was discharged in bankruptcy.
Can I join a class action lawsuit against a debt collection company for unfair practices?
Yes, if a debt collection company engages in widespread violations of consumer protection laws like the FDCPA, consumers may be able to join or initiate a class action lawsuit. Class actions are designed to allow a group of individuals with similar claims against a company to seek redress collectively. To determine if a class action is viable or already in progress, you would typically consult with a consumer protection attorney who specializes in class action litigation. They can assess whether the company's alleged misconduct affects a large number of consumers in a similar way and whether pursuing a class action is appropriate. Filing individual complaints with regulatory agencies is also important, as these can sometimes trigger broader investigations that lead to class action settlements.
Disclaimer
This analysis is generated by an AI and is for informational purposes only. It does not constitute legal advice. You should consult with a qualified legal professional for advice specific to your situation.