CFPB complaint. What now?

[Andrew22]

Hello All:

So, I just filed my first ever complaint with the CFPB. Anyone want to weigh in what I cabn expect? Below is my description:

"On or around March, calls began from Performance Receivables. I answered one call, informed them I owed no debt. I know this to be true because I am enrolled in MyFico monitoring since 2010, and monitor my credit meticulously. I asked rep to refrain from calling and send any further communications by mail. Rep asked for personal info. I hung up. Calls have continued, up to 12-15 per day.

This month, I was denied a credit line increase and my score overnight dropped from 840 to 725. Performance Receivables had reported a collection in excess of $3000. In addition, at the same time, and for the first time, the alleged debt, a Verizon account, allegedly opened in January 2015 in another state, in excess of $2400 appeared for the first time.

I pulled reports from all agencies and it is immediately clear the charges are not mine, and possibly fraud. At no time was fraud raised to me. Just harassing calls. No dunning was ever produced. The calls have caused distress to me and my family. And now I have been denied credit and harmed by what is at least negligence on the part of Performance Receivables, and at worst illegal conspiracy with Verizon. In addition, I am spending time and money attempting to clean up my credit reports."

I don't know how this could happen. Thanks to MyFico, I have great credit and I know how to manage it. But out of nowhere, someone creates a Verizon Wireless Account and it gets reported by Verizon and PR at the same time, for the first time, 7 months later? No new account reported. No 30,60,90 days late. It reported as seriously delinquent. No account info. Opened in another state! So cearly fraud, and possibly worse, I had to report and had to share. The harassment was crazy. And, neither Verizon or PR ever pulled a report on me.

[RobertEG]

In my opinion, the involvment of the CFPB was premature as it relates to the substantive issue of credit reporting and identity theft.

The CFPB would not be privy to any special knowledge of whether the reporting was a result of identity theft/fraud.  They are not the party to idependently make that determination.  The consumer can address the matter without any need to prove anything by use of the identity theft process of FCRA 605B.  A simple sworn statement in a police report is adequate to get the info blocked without any concurrence of anyone, or any need for proofs.

There is no requriment in either the FCRA or the FDCPA that a creditor report prior to referral to a debt collector,or that a debt collector contact or notify the consumer prior to reporting of their collection.

As for requring the debt collector to cease calls, a cease communication request must be in writing per FDCPA 805(c).

There are two possible violations of the FDCPA.

One being the large number of calls, which could be asserted as harassment, and the other being the lack of dunning notice after first communication.

Howver, the other issues do not appear ripe for CFPB involvment.

I would suggest filing of a police report, and sending a copy to the CRA to get the reporting of both the OC and debt collector blocked from credit reports.

The police report can also be sent to both the creditor to obtain copies of their business records relating to the alleged account under FCRA 609(e).

Finally, a DV can be sent both to obtain debt validation and to invoke a cease communiation bar.

[Andrew22]

Maybe.

But a police report on what basis Robert? I don't know anythign about any of this. I never opened an account. It never appeared on my credit report. Verizon Wireless never contacted me. Never sent me a bill. Never reported the account when it opened. Never called me. The CA rep I spoke to offered no info, and asked for sensitive info, ss#, etc. I asked for whatever they think they had in writing. It was never sent. Am I supposed to give some random caller my SS#? And to who was I suppose to send a DV? And on what basis? All I got was phone calls. I had no idea what this was about. I didn't even know what to DV until it was reported as a CO. And the law clearly states that companies must not supply information to a CRA that it knows (or should know) is inaccurate. I reject the idea that I should have to give up information to a collection agency to learn that there may or may not be fraud. The basis of my complaint is that there was clearly NO basis for reporting this on MY credit report for the first time as a CO, and even a cursory look at the account would support that.

[Anonymous]

What he (Robert) said was that it was premature. I took that to mean first deal with the fraud, then follow-up with CFPB.

You do need to make a police report. This happened to my husband a couple of years ago. Suddenly we received a bill from a collection agency for a collection on an AT&T U-verse account. I have an U-verse account, in my name, he never had. We first contacted AT&T, found the correlation between the address they had on record and a previous girlfriend (and yes I needled him on his taste in women, heehee). Then he went to our local police service station and made a simple fraud police report. 5 days later, the report was in their system and we got an official copy which we forwarded to AT&T along with records proving that at the time the account was created, my husband was not living at the address the account was created. I believe AT&T asked for a minimum of 3 different offical records, a lease, bank account statement, utility bill, etc. It was less than a month, more like 2 weeks that we received a letter from AT&T stating that they had completed their investigation and that they had concluded the account was fraudulently opened.

Contact Verizon and get as much information as they have on the account. What address it had on record, when it was opened and for how long. Ask them what they need to open a fraud investigation on their side. Then go to the police station and simply give your report. You won't get any real satisfaction on that end, but they will make a report. Just give the facts. You got a collection notice originating in a state you do not live in, and the account is not yours.

[takeshi74]

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@Andrew22 wrote:

I never opened an account. It never appeared on my credit report. Verizon Wireless never contacted me. Never sent me a bill. Never reported the account when it opened. 

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Cellular service is not credit and does not report.  You cannot rely on reporting or a lack thereof as evidence of anything.

I'd agree that the CFPB complaint was premature as it doesn't seem that you have attempted to address the problem through the proper channels first.

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@Andrew22 wrote:

But a police report on what basis Robert?

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Identity theft.  That's you're saying happened.

[Andrew22]

Hello and thanks to all...

I am dealing with it, I would add.

However, my complaint is that the reporting of the account is clearly negligent. I was not sent a dunning in writing. Calls continued. And, a cursory look at my credit file would clearly and quickly show this account has NO connection to me. That's my complaint.

The account was opened in another state in January, and closed just a month later after $2430 in charges. That Verizon got scammed is clear. That such a clear scam could be reported to collection and put on my credit report when it clealry has no connection to me represents a serious procedural problem.

If a collection agency can find me and call me, why couldn't Verizon find me and call me first? Why do I have to give personal information to a collection agency I have no relationship with and have no reason to trust?

OK, myabe my complaint was premature, and I'll keep you posted.

[Andrew22]

Police report filed...will see where it goes. Won't get a copy of the report for awhile, though...

[Anonymous]

The police report will most likely go nowhere. Pretty sure ours didn't although AT&T was able to figure out who it likely was that opened the account in my husband's name. Based on the address where the service was initiated, my husband said, "Oh, I know someone who used to live there. Jane Doe" And they cross referenced the name and found they did have service under HER name at the address previous to the service under my husband's.

But you need the report to send to the CRB and to Verizon to get it off your records. Be sure to contact Verizon with what you have and ask what they need to prove it wasn't you and get it fixed.

Remember that as far as the dunning letter, contact from the OC, or even from the collection agency (aside from the multiple phone contacts) was likely done via the original address where the account was created. Verizon had bad information, but they didn't KNOW that. The collection agency went with what Verizon gave them. Then they likely skip traced, and found your correct phone number.

I'm not excusing the harrassing phone calls, or even the collection agency not sending the letter to YOUR address prior to reporting the collection; they found your number, I bet they could've gotten an address just as easily. I'm just saying the blame should be pointed for the most part on the identity thief. Skeezy dirtbag that they are.

[Andrew22]

I am not sure I agree with your assessment, Solaire. I just got my TU report, (and lodged a dispute) and Verizon Wireless pulled my TU report on 6/10 and pulled from Equifax on the day the account was opened, 1/19. They would have seen all my correct contact information there. I have not moved in 7 years. There was no "skip-tracing" involved.

What really bothers me now is that I am enrolled in FICO quarterly monitoring and THE INQUIRY DID NOT SHOW UP on my report, nor did I get an alert.

What is also interesting. The Verizon entry has the account being opened on 1/19 and placed for collection on 3/18. A little quick to go to collection, no?

And the original debt is listed at $579 and the original creditor as SPRINT. I have never had an account with either Sprint or Verizon Wireless.

$579 has now magically grown to $3143.

And, the address for Verizon on my TU report is listed as Minneapolis. While on another report, it is listed as Lakeland, Florida? Both are PO Boxes.

[Andrew22]

And once again, Robert is right. I was premature.

Turns out, these are two separate claims. RPM is for a fake sprint account, and Verizon is separate. Verizon has handled the complaint already, and will remove once the police report is filed. My complaint remains: both should NEVER have reported. I should have been contacted by Fraud reps, not collection agents, and Verizon's quick handling of this proves that. They recognized this immediately as fraud.