CFPB Complaint


Consumer Complaint Submission

Date Received: 2018-10-26T00:00:00

Product: Other debt

Issue: Attempts to collect debt not owed

Consumer Consent Provided to Share Complaint: Consent provided

Consumer Complaint: I am a recent college graduate looking for help resolving an issue with a fraternity I belonged to in college.

The fraternity alleges I owe {$1400.00} to pay for dues accumulated during the time that I was a member. However, they are attempting to collect for a period of time during which I was not a member, and for a larger amount than was originally communicated. They are using Fidelity Capital Holdings as their debt collector.

The fraternity, the XXXX XXXXXXXX XXXX XXXX of the XXXX XXXX University, has alleged that I signed a series of documents that prove that the debt belongs to me. They are stating that I signed these documents when I joined the fraternity, which was in the XX/XX/XXXX. The agreement, according to the fraternity, obliges me to pay an undisclosed and arbitrarily conceived amount of money for an indefinite period of time. I did not sign any such document, and to my knowledge such a contract is illegal. The fraternity refuses to provide me with an exact date that this alleged contract came into being, and they have for months refused to provide me with any documentation corroborating their claims.

XXXX XXXX works with a 3rd party billing partner, XXXX. If a fraternity decides that they wish to move forward with a Collections procedure for an individual, XXXX initiates that process with their debt collector. XXXX XXXX reached out to XXXX and started the pre-collections procedure. In response, I sent a Letter of Debt Validation to XXXX. XXXX confirmed with me that the letter was received on XX/XX/XXXX.

I have spoken on the phone with XXXX every single day since XX/XX/XXXXXXXX, when I sent the letter. Their representatives have communicated to me that XXXX XXXX do not intend to respond to the letter. There is no documentation in existence whatsoever corroborating XXXX XXXX ‘s claims, verifying that the debt belongs to me, or validating Fidelity Capital Holdings ‘ collection efforts.

XXXX XXXX is a college fraternity being run by a bunch of young men ages XXXX-XXXX. They are not trained in proper or legal accounting practices, and as a result have slipped into a pattern of fraudulent debt collection behavior.

Furthermore, it is a violation of the Fair Debt Collection Practices Act for XXXX to continue to collect on this account, as they did not even make an attempt to respond to my letter of Debt Validation. I did not sign ANY document whatsoever when I joined XXXX XXXX, and in the absence of any validation of the alleged debt, I ask that XXXX XXXX cease and desist collection efforts.

READ  HCFS Health Care Financial Services, Inc. - CFPB Complaint ID 2838414

Lastly, it has come to my attention that funds collected by XXXX XXXX and XXXX are used for illegal activities, including underage drinking, illicit drug abuse and sale, gambling, and credit card fraud. The adult representative of the chapter has engaged in lewd and salacious conduct with a young member on at least one occasion. I have ample documentation to verify this information if need be.

Regarding the attached documents : 1. A representative from XXXX XXXX headquarters sent an email entitled ” XXXX XXXX ” to XXXX, which they forwarded to me.
2. ” XXXX XXXX XXXX ” is an email sent over the XXXX XXXX XXXX chapter email distribution list. It was sent XX/XX/XXXX and directly contradicts the letter sent by XXXX.

XXXX said, ” The fees currently are {$100.00}, {$200.00} and {$200.00} respectively … these fees have been consistent for at least the past 5 years. ” This email, from the then-Chapter President, proves that the chapter has been changing the dues on a yearly or semi-annual basis, and that the amount that they charge is more than 5 times what they purport to charge.

This is blatantly fraudulent behavior. According to 807 of the Fair Debt Collection Practices Act, ” A debt collector may not use any false, deceptive, or misleading representation or means in connection with the collection of any debt. ” It continues, ” … following conduct is a violation of this section : … ( 2 ) The false representation of — ( A ) the character, amount, or legal status of any debt.

Their failure to provide any proof or validation of the debt whatsoever represents a wholly false representation of the character and legal status of the debt. Furthermore, without validation of the debt, there is no way for me to check if I have already paid a portion of the alleged debt. Therefore, Fidelity ‘s behavior has directly led to a gross misrepresentation of the amount.

Furthermore, respondent to Section 808 of the Fair Debt Collection Practices Act : A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section : ( 1 ) The collection of any amount ( including any interest, fee, charge, or expense incidental to the principal obligation ) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

READ  CURO Intermediate Holdings - CFPB Complaint ID 3090617

Even if you take XXXX XXXX preposterous claim as truth, that the contract I allegedly signed allowed them to decide a new amount to charge whenever they want, and for an undisclosed time period, this would be a direct violation of Section 808.1 of the FDCPA. Their claim that such a contract exists is certainly desperate, but also demonstrates their ignorance to fair debt collection practices. To be clear, I never signed any documentation when I joined XXXX XXXX. The refusal of all parties to comply with my Debt Validation Request should provide a clear indication that no such documentation exists ; otherwise they would have sent it already.

XXXX XXXX, XXXX, and Fidelity Capital Holdings have consistently rejected my requests for proof of debt ; the burden of proof resides squarely with these three companies.

The discrepancy between what they claim to charge and actually charge can most likely be recuperated in the cost of the above-mentioned illegal activities.

In conclusion, I ask that Fidelity Capital Holdings cease and desist all debt collection efforts in relation to this account, and to permanently close my account.


State/Zip: CA

Company Response to Complaint: Closed with explanation

Was Company Response Timely: No

Did Consumer Dispute Company Response: N/A

Complaint ID: 3057892

The above data is from the Consumer Financial Protection Bureau. Keep in mind that every company will get a complaint from time-to-time, even the great ones. But there are a few key data points that will give you an idea about how well the company values their customers and handles consumer issues.

Look at the item Company Response to Complaint: and Did Consumer Dispute Company Response: to get a better idea of how this was resolved. And the field Consumer Complaint: can give you some context of the issue.

In particular what you are looking for was that the company response was timely and that the consumer did not dispute it. The posting of complaints has proven to be a valuable resource for both companies and consumers.

About the author

Research Department

Here is where you will find important stories located from around the web which can impact you and your financial life.

Scroll to Top