Shyju K.’s Battle Against Unfair Debt Collection Practices

In today’s financial landscape, credit reporting is crucial in determining a person’s ability to secure loans, mortgages, and even housing. This system spiraled into a distressing nightmare for Shyju K., a Kirkland, Washington resident and diligent consumer. What began as a straightforward apartment move turned into a long battle against inaccurate credit reporting, aggressive debt collection, and emotional turmoil.

A Move Gone Wrong: The Backstory

Shyju’s journey started in March 2018 when he signed a lease at The Heights at Bear Creek Apartments. As a responsible tenant, he paid a $250 security deposit as part of his agreement. He lived in the apartment through the ups and downs of life, including navigating the challenges posed by the COVID-19 pandemic. In early February 2020, Shyju decided to purchase a home and notified his apartment complex of his intention to vacate upon the lease’s expiration on March 15, 2020. The process of moving out seemed seamless, with no issues on the horizon.

On March 17, 2020, Shyju received a final account statement from The Heights at Bear Creek Apartments that left him with a sense of closure. The statement indicated that he owed $286.22 for miscellaneous fees and move-out costs. However, after applying his $250 deposit, he was only responsible for a remaining balance of $36.22. With confidence, he made the payment on April 6, 2020, assuming he had settled everything with the apartment.

This assumption was short-lived. Just months later, on October 8, 2020, Shyju received another “final account statement” from the complex. This document was marked “Revised” and shockingly indicated that he owed $250.00. Confused and concerned, Shyju reached out to Brooke R., the senior property manager at the complex, for clarification.

In an exchange that only deepened his confusion, Ms. R. explained that due to new COVID-related laws, the complex was “refunding” security deposits but simultaneously required tenants to pay back any outstanding balance from the final statements, effectively charging them twice for the same debt. She reassured him that he would receive his deposit back, but he would need to return that amount upon receiving it. Unfortunately, Shyju never received this refund.

A Harrowing Experience: Debt Collectors Enter the Scene

As time went on, Shyju began receiving phone calls from debt collectors demanding the now-mysterious $250 balance. Distressed and frustrated, he tried repeatedly to contact both The Heights at Bear Creek Apartments and the debt collectors to clarify the situation and rectify what he believed was a mistake. Yet, his attempts were met with silence or vague responses, leaving him feeling powerless and anxious.

The situation escalated on May 30, 2023, when Columbia Debt Recovery LLC, doing business as Genesis, contacted him via email attempting to collect the $250 debt, with an additional interest charge of $4.44. This was the first time Shyju had seen Genesis’s name linked to this supposed debt, triggering a wave of panic.

On June 26, 2023, Shyju sent a formal letter to Genesis disputing the debt's validity and requesting that they cease any further communication. USPS tracking shows the letter was delivered on July 5, 2023. Unfortunately, Shyju never received a response. Instead, Genesis persisted with their collection efforts, bombarding him with phone calls and emails, leaving him feeling harassed and distressed.

Taking Action: Disputes and Responses

Recognizing the urgency of his situation, Shyju took matters into his own hands. On June 29, 2023, he sent another letter, this time to The Heights at Bear Creek Apartments, requesting an audit of his account and disputing the inaccurate information they had reported. He sought clarity on the status of his security deposit refund and the revised charges.

In the meantime, in June and July 2023, he took the initiative to dispute the collection account with all three major credit bureaus—Experian, Equifax, and TransUnion. On July 12, 2023, he received a response from Experian, confirming the deletion of the Genesis account from his report. However, a notification from Equifax on July 16, 2023, stated that they could not locate a credit file for him. This left Shyju bewildered, especially considering his long-standing credit history.

By July 21, 2023, TransUnion responded by verifying the accuracy of the disputed information. Frustrated by the lack of resolution, Shyju disputed the claims with Equifax and Genesis again. On August 4, 2023, he sent another dispute letter to Equifax, which was received on August 10. Yet, by August 21, Equifax responded by asserting that the reporting was accurate, despite Shyju’s evidence to the contrary.

Meanwhile, on August 7, he sent a certified dispute letter to Genesis, and on August 23, he sent a follow-up letter to both TransUnion and Equifax. The responses remained consistent: both bureaus refused to delete the Genesis account. On October 5, 2023, Shyju pulled his Equifax report to find that not only was the disputed Genesis account still being reported, but a second duplicate account had also surfaced.

The Consequences: Damaging Effects on Credit

As a result of Genesis's ongoing erroneous reporting and the credit bureaus' failure to act on Shyju’s disputes, he suffered significant damages. The inaccurate collection account suggested that he was delinquent and responsible for a debt that did not exist. This erroneous reporting directly and indirectly impacted his credit score, making it practically impossible for him to obtain credit.

Collection accounts are notorious for their detrimental effects on credit scores, often resulting in drops of 50 to 100 points, regardless of the amount owed. This impact is even more pronounced when the collection is recent, as Shyju experienced. Upon information and belief, he was denied credit at least once during 2023 due to the inaccurate reporting from Genesis, including a denial for a credit card with Capital One.

The psychological and emotional toll on Shyju cannot be overstated. He endured stress, anxiety, and frustration over the situation, impacting his day-to-day life and work. The hours spent disputing the inaccurate information and attempting to resolve the issues consumed valuable time that could have been better spent elsewhere. He faced humiliation and embarrassment as he navigated the credit application process, knowing that he was being judged by inaccurate information.

Taking Legal Action: Seeking Justice

Realizing the gravity of his situation, Shyju sought the help of Consumer Attorneys. Our team quickly recognized the potential violations of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA) on the part of Genesis and the credit bureaus. We filed claims against both Equifax and TransUnion for their refusal to conduct reasonable reinvestigations of the disputed account and against Genesis for failing to properly investigate Shyju’s disputes, and their persistent attempts to collect an invalid debt.

Our case highlighted the following key points:

• Inaccurate reporting. Genesis attempted to collect on a nonexistent debt, misrepresenting the amount owed and ignoring Shyju’s legitimate disputes.
• Failure to reinvestigate. TransUnion and Equifax both failed to follow the mandates of the FCRA, which requires credit reporting agencies to conduct thorough investigations into disputed information and ensure the maximum possible accuracy.
• Emotional distress. The harassment and anxiety caused by Genesis’s relentless pursuit of a debt that was not owed significantly impacted Shyju’s mental well-being and quality of life.

After thorough negotiations, we achieved a remarkable six-figure settlement with Genesis, Equifax, and TransUnion, which left Shyju feeling relieved and vindicated. This resolution compensated him for the damages he suffered and reinstated his faith in the justice system.

Conclusion: A Victory for Consumers

Shyju K.’s experience serves as a sobering reminder of the potential pitfalls consumers face in the realm of credit reporting and debt collection. His journey underscores the importance of vigilance and action in the face of errors that can seriously affect one’s financial health and mental well-being.