Product: Debt collection

XXXX XXXX XXXX XXXX XXXX, XXXX, NY XXXX XX/XX/XXXX CFPB Dear CFPB : My name is XXXX XXXX and I am contacting you to resolve Charge Offs on my Credit Report for Santander Bank with Account number : XXXX. 
I am requesting this Debt be removed from my Credit Reports. 
As part of the process of closing on the purchase of my home in XX/XX/XXXX, I had to pay off a few creditors : One of those Creditors was Santander Bank. I am enclosing a copy of the check issued by my attorneys office for the full amount owed based on the statement received. This was during COVID-19. The bank did not cash the check timely, when they were contacted, I was informed due to delays in opening backed up accumulated mail they can not confirm receipt of my check. My check was eventually cased and this account should have been closed. A few months later I received an outstanding bill from Santander. I explained that I paid my balance in full. Due to their delay in cashing my check it incurred finance charges. I explained to the bank if they can grant a courtesy waiver of the finance charges since I paid the balance in full and the reason the finance charges were incurred were in fact a delay in them processing my payment timely. Santander refused to waive the finance charges. Several months later, I continue to receive their notice and constant calls during all times of the day and this was subsequently reported on my credit report. I again contacted Santander to offer to pay the initial balance that was incurred after the check was cashed and they refused this option. They wanted the payment in full. I should not have to pay any of these finance fees since my card was paid off. 
I also contacted XXXX in late XXXX and XXXX to establish a dispute through them, I submitted copies of the check sent and additional documentation that the balance was paid in full. XXXX refused to remove and correct this on my report. 
What Ive identified per 15 U S C 1666 ( b ) Guidelines, items ( a ) and ( b ) seems to apply to the finance charges that Santander is imposing. 
( a ) TIME TO MAKE PAYMENTS A creditor may not treat a payment on a credit card account under an open end consumer credit plan as late for any purpose, unless the creditor has adopted reasonable procedures designed to ensure that each periodic statement including the information required by section 1637 ( b ) of this title is mailed or delivered to the consumer not later than 21 days before the payment due date.

( b ) GRACE PERIOD If an open end consumer credit plan provides a time period within which an obligor may repay any portion of the credit extended without incurring an additional finance charge, such additional finance charge may not be imposed with respect to such portion of the credit extended for the billing cycle of which such period is a part, unless a statement which includes the amount upon which the finance charge for the period is based was mailed or delivered to the consumer not later than 21 days before the date specified in the statement by which payment must be made in order to avoid imposition of that finance charge. 
As of date, Santander is reporting this as a charge off on my credit and this is greatly impacting my ability to live an affordable life with my income being a single parent with XXXX young adults with XXXX having a XXXX. I am forced to pay high interest rates, being declined for credit or to even finance a much needed vehicle to be able to transport to and from work. I am not even able to assist my young adult children in a vehicle to travel to and from school. I am not even able to get approved for a credit card or a home equity loan to consolidate my debt. I am currently in a state of financial hardship and I am imploring on your fair judgement to have this removed off of my reports.

I began to do some research on Charge Offs and according to what I was able to locate on the IRSs website : To my understanding, this charge off is when an entity no longer want to pursue a debt and report it as a loss. Based on IRS Publication 4681 ( 2023 ) Under the IRS guidelines on Collections of Debt/discharge/charge off of debt : If your debt is forgiven or discharged for less than the full amount owed, the debt is considered canceled for the forgiven or discharged amount that you no longer need to pay. Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're obligated to pay. If you own property securing a debt, cancellation of the debt may occur due to foreclosure, repossession, voluntary transfer of the property to the lender, abandonment of the property, or a mortgage modification.

Code GDecision or policy to discontinue collection. Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. For purposes of this identifiable event, a defined policy includes both a written policy and the creditor 's established business practice. 
The lender must file Form 1099-C and send you a copy if the amount of debt canceled is {$600.00} or more and the lender is a financial institution, credit union , federal government agency, or other applicable entity, as discussed earlier in chapter 1 of Collections of Debt based on Publication 4681 ( 2023 ).

By Definition, the IRS Clearly says a Cancelled debt or Charge off is Income. The reporting of this account as a debt is inaccurate. 


I am seeking your assistance in having this debt removed off of my credit as soon as possible. I hope that the information I have submitted satisfies your requirement to have this removed. I find it difficult to resolve any discrepancies with the Credit Reporting Bureaus. As per 15 U S C Code 1681 et seq, governs access to consumer credit report records and promotes accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies ( CRAs ). The CRA 's are not promoting fairness or accuracy in my information. 

Respectfully, XXXX XXXX