Debt collection -- Attempts to collect debt not owed -- Complaint #9987849
Debt Collector Fails to Validate Debt, Consumer Claims
Complaint Overview
Complaint ID: 9987849
Company: Bread Financial Holdings, INC.
Product: Debt collection
Sub-Product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-Issue: Debt is not yours
State: Florida
ZIP Code: 328XX
Date Received: 2024-08-31T12:00:00-05:00
Date Sent to Company: 2024-08-31T12:00:00-05:00
Company Response: Closed with non-monetary relief
Timely Response: Yes
Consumer Disputed: N/A
Submitted Via: Web
Risk Assessment
Risk Level: high
The company's failure to provide proper debt validation, including discrepancies in dates and missing original creditor documentation, suggests a potential violation of the FDCPA.
Consumer Sentiment: negative
Topics: Debt collection, Debt validation, FDCPA
AI Analysis
CFPB complaint 9987849 was filed against Bread Financial Holdings, Inc. regarding Debt collection (Credit card debt), specifically about "Attempts to collect debt not owed". A consumer disputes a debt, claiming the debt collector failed to provide proper validation under the FDCPA, citing discrepancies in payment and charge-off dates and a lack of original creditor documentation. The complaint was received on August 31, 2024 from Florida. The company responded with "Closed with non-monetary relief".
Consumer Narrative
In response to a debt validation request I submitted to XXXX XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX the company provided documents that do not constitute proper validation under the Fair Debt Collection Practices Act ( FDCPA ). The documents included a statement indicating that a last payment was made on XX/XX/year>, with a charge-off date of XX/XX/year>. However, an account summary they provided shows a different last payment date of XX/XX/year>, without any corresponding statement to support this claim. This discrepancy raises significant concerns about the accuracy and legitimacy of the debt information. Furthermore, the documentation provided did not include the original signed promissory note or any other documentation directly from the original creditor, Comenity Bank, proving that I agreed to the terms of this debt. Despite my request for proper validation, XXXX XXXX XXXX and XXXX XXXX XXXX have failed to provide sufficient evidence to substantiate the debt. In addition to these discrepancies, the original creditor, Comenity Capital Bank, has an arbitration agreement that requires any legal disputes to be resolved through arbitration rather than court proceedings. This agreement includes specific terms, such as a 60-day notice requirement before initiating arbitration, waivers of class action and jury trial rights, and a requirement that disputes be resolved individually and through final and binding arbitration. Given the failure to provide proper validation and the inconsistencies in the documentation, I have formally requested that XXXX XXXX XXXX XXXX XXXXXXXX XXXX cease all collection activities and remove the account from my credit report. However, the company has not yet complied with this request. As a result, I am filing this complaint to seek assistance in ensuring that XXXX XXXX XXXX and XXXX XXXX XXXX cease any further collection activities related to this disputed and unvalidated debt and that the inaccurate information is promptly removed from my credit report.
What You Should Do -- Consumer Action Plan
Consumers should carefully review all debt validation documents and, if discrepancies are found, clearly communicate them in writing to the debt collector and consider seeking legal advice.
Legal Context & Consumer Protection Laws
The Fair Debt Collection Practices Act (FDCPA) requires debt collectors to provide specific information to consumers upon request to validate a debt.
Regulatory Insight
This case highlights the importance of debt collectors adhering strictly to FDCPA validation requirements to avoid legal challenges.
Resolution Likelihood
likely
State-Specific Consumer Protections
The complaint was filed in Florida, and the company involved is Bread Financial Holdings, Inc.
Industry Comparison
Many debt collection complaints involve disputes over debt validation and the accuracy of information provided by collectors.
Related Issues
Frequently Asked Questions
What is CFPB complaint 9987849 about?
CFPB complaint 9987849 involves Debt collection (Credit card debt). The consumer reported an issue with "Attempts to collect debt not owed", specifically "Debt is not yours". This complaint was filed against Bread Financial Holdings, Inc. on August 31, 2024.
Which company is complaint 9987849 filed against?
Complaint 9987849 was filed against Bread Financial Holdings, Inc.. You can view all complaints against this company on their profile page at /company/bread-financial-holdings-inc.
What was the company's response to complaint 9987849?
Bread Financial Holdings, Inc. responded with "Closed with non-monetary relief". The response was marked as timely by the CFPB.
When was complaint 9987849 filed?
Complaint 9987849 was received by the CFPB on August 31, 2024. It was sent to Bread Financial Holdings, Inc. on August 31, 2024.
What state was complaint 9987849 filed from?
Complaint 9987849 was filed from Florida. You can view all complaints from this state at /state/FL.
Was the consumer satisfied with the resolution of complaint 9987849?
Dispute information is not available for complaint 9987849.
What product category is complaint 9987849 about?
Complaint 9987849 is categorized under "Debt collection", specifically "Credit card debt". This is one of the product categories tracked by the CFPB.
How was complaint 9987849 submitted?
Complaint 9987849 was submitted via Web. The CFPB accepts complaints through web, phone, mail, email, fax, and referral channels.
What are the consumer's legal options for complaint 9987849?
The Fair Debt Collection Practices Act (FDCPA) requires debt collectors to provide specific information to consumers upon request to validate a debt. This relates to a Debt collection complaint against Bread Financial Holdings, Inc. involving "Attempts to collect debt not owed".
How likely is complaint 9987849 to be resolved?
Resolution likelihood: likely. The company's current response is "Closed with non-monetary relief". The company did respond in a timely manner, which is a positive indicator.
What does the risk level mean for complaint 9987849?
This complaint is rated as high risk. The company's failure to provide proper debt validation, including discrepancies in dates and missing original creditor documentation, suggests a potential violation of the FDCPA.
What regulatory actions apply to complaint 9987849?
This case highlights the importance of debt collectors adhering strictly to FDCPA validation requirements to avoid legal challenges. The CFPB tracks complaints like this one to identify patterns of misconduct across the Debt collection industry.
What should the consumer do about complaint 9987849?
Consumers should carefully review all debt validation documents and, if discrepancies are found, clearly communicate them in writing to the debt collector and consider seeking legal advice.
Are there state-specific protections for complaint 9987849?
The complaint was filed in Florida, and the company involved is Bread Financial Holdings, Inc. This complaint was filed from Florida.
How does complaint 9987849 compare to industry norms?
Many debt collection complaints involve disputes over debt validation and the accuracy of information provided by collectors.
Does the arbitration clause in the original creditor's agreement prevent the consumer from pursuing legal action regarding the debt validation issue?
The arbitration clause may require the consumer to pursue disputes through arbitration rather than court, but its applicability to the debt validation process itself would depend on the specific wording and relevant legal interpretations.
What constitutes 'proper validation' under the FDCPA when a debt has been charged off?
Proper validation typically requires the debt collector to provide documentation that proves the amount of the debt, the name of the creditor, and evidence that the collector has the right to collect the debt, which may include original agreements or account statements.
Disclaimer
This analysis is AI-generated and does not constitute legal advice.