Additional Information for Phoenix Financial Services, LLC

On June 8th, 2023, the Consumer Financial Protection Bureau issued a Consent Order against Phoenix Financial Services. The Order settles allegations that Phoenix Financial Services violated the Fair Credit Reporting Act by failing to "conduct reasonable investigations of consumer disputes," as well as the Fair Debt Collection Practices Act by "using false and deceptive means to collect debt." Under the terms of the Consent Order, Phoenix Financial Services is ordered to (a) provide redress to affected consumers who received unlawful debt collection letters between January 2017 and the Effective Date of the Consent Order and (b) pay a $1.675 million penalty to the Consumer Financial Protection Bureau. For extended details about the CFPB's action and the Consent Order, you can visit this link: https://www.consumerfinance.gov/enforcement/actions/phoenix-financial-services-llc/.

BBB files indicate that this company may have a pattern of complaint. Specifically, consumers allege the business

• Sends collection notices concerning debt that consumers do not owe and/or have already paid

• Fails to provide verification of debt at the request of consumers

On June 13, 2023, BBB requested that the business respond to the alleged pattern. On July 20, 2023, the business responded to BBB with steps they are implementing to eliminate the alleged pattern of complaint. Their response includes the following statement:

"Phoenix does not issue improper collection notices and we are enhancing out policies and procedures by: 

• Conducting reasonable investigations on all disputes received from consumers, including verification of account details with the creditor

• Randomly auditing and validate debts being credit reported by PFS

• Implementing controls to ensure the accuracy of data furnished to any Credit Reporting Agency and auditing compliance with those controls."

As of August 9, 2023, BBB will continue to monitor the alleged pattern of complaint.