Southwest Credit Systems, LP (“Southwest”) is a debt collection company located in Carrollton, Texas. A quick search of the web reveals multiple complaints about Southwest and its collection methods. It appears, at least in Kentucky, that Southwest collects a lot of telecommunications debt from companies such as AT&T and Windstream Communications, Inc. One of Southwest’s favorite collection tactics is to furnish negative information on the alleged debtor’s consumer credit report.
Southwest, however, does not delete negative information on credit reports after the original creditor has removed an account from Southwest for collection. Southwest’s failure to delete could violate both the Fair Credit Reporting Act and the Fair Debt Collection Practices Act. In essence, the failure to delete negative information on debts that Southwest is no longer actively collecting creates zombie or phantom debts.
After the original creditor (AT&T, Windstream, etc.) removes the account from Southwest for collection, the original creditor often sells the debt to third-party debt buyers such as LVNV Funding, LLC and Midland Funding, LLC. The debt buyer then also furnishes negative information about the same debt to the consumer credit reporting agencies. This results in multiple collection accounts on a credit report concerning the same debt. This has multiplying negative affect on a consumer’s credit report.
If this abuse is happening to you, we can help.