Consumer complaint received 2022-07-18
Company: Bridgecrest Acceptance Corporation
State: GA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account information incorrect

Complaint:
It has come to my attention that Bridgecrest received multiple payouts on my cancelled debt and still proceeded to collect funds from me. 15 U.S. Code 1605 ( a ) ( 5 ) explains that insurance is built into a loans finance charge to ensure lenders receive payment in the event an obligor defaults. Per your reporting to the consumer reporting agencies ( attached ), I defaulted in XX/XX/XXXX, you charged off the account in less than 120 days ( in XX/XX/XXXX ), which means insurance was collected. Reporting this account as a charge-off is tax fraud. When a creditor takes advantage of IRS rules allowing tax deductions for bad debts ; such actions render it inequitable to enforce debts after it has received the tax benefit of a charge-off. See, e.g., Discover Bank v. Shimer, 36 Misc. 3d 1214, ( N.Y. Dist.Ct. XXXX ), Amtrust Bank v. Fossett, 223 Ariz 438, 224 P3d 935 ( App XXXX ), or Franklin Management Corp.v. Nicholas, XXXX WL 893894 ( XXXX XX/XX/XXXX ). The IRS defines a charge off as gross or ordinary income, income is not reported on a consumer report. Why is this account still reporting on my consumer report? Furthermore, you are required to send me a copy of the cancelled debt form. When I realized I had not received this form, I contacted your offices ( in XX/XX/XXXX ) requesting it specifically. A representative interrogated me as to why I needed it, then emailed an interest statement within 72 hours. An interest statement is not a copy of Form 1099-C. This retail installment contract was assigned to Bridgecrest Acceptance Corporation from XXXX, XXXX. on XX/XX/XXXX. Even as a third-party lender, the Federal Trade Commission requires you to comply with the Gramm-Leech Baily Act. You disclosed nonpublic personal information about myself to nonaffiliated third parties, as early as XX/XX/XXXX per my consumer report. Why did you withhold the initial Privacy Policy and Practices notice? There were no " clear and conspicuous '' written notices describing your privacy policies sent to me in any form. I have all of my original documentation from XXXX XXXX, XXXX/Bridgecrest contract. I never received ( 1 ) Privacy OR Opt-Out notice from you or XXXX XXXX, XXXX. at the time of purchase nor shortly thereafter. We had a ( 2 ) year relationship, why didnt you deliver my annual Privacy Notice required throughout that timeframe? If I was provided the opportunity to opt-out I would have, but I was not given a choice.

In summary -- The Federal Deposit Insurance Corporation ( FDIC ) requires closed-end retail loans to be charged-off once they are past due for 120 days or have ( 5 ) missed payments. This account was charged-off in 60 days per Bridgecrests reporting. Bankruptcy considerations do not apply to this account.

TAX FRAUD per your reporting this account was charged-off in XX/XX/XXXX, yet you never sent me a copy of Form 1099-C. You reported this account as gross income to the IRS but continued reporting it as a charge-off to the consumer reporting agencies.

If you reported this account as a charge-off to the consumer reporting agencies yet failed to file the required form with the IRS, this could likely result in penalties under IRC 6721 and 6722. From a consumer/previous customer standpoint, you will certainly be held accountable for intentionally reporting this inaccurate account for ( 2 ) years if Form 1099-C was not submitted.

Once the account was charged-off, your loss was insulated through credit insurance built into the finance charge and you were paid out at the time of default.

You received full payment of the remaining balance from me after you recouped your loss through the tax WRITE-OFF and INSURANCE.

You failed to comply with the Gramm-Leech Baily Act ( 16 C.F.R. 313.4 ( a ), 313.5 ( a ) ( 1 ), and 313.10 ( a ) ( 1 ) ) I was not provided an initial Privacy notice, Opt-Out notice, or an annual notice throughout the duration of our business relationship. Just a reminder, under the GLBA, financial institutions can face civil fines of {$100000.00} per violation, and officers and directors can face personal liability for {$10000.00} civil fines ( also on a per-violation basis ). Moreover, this account continues to report on my consumer report. I am submitting this information to the IRS along with supporting documents. I am opening an investigation into the matter with the XXXX, CFPB, FTC, OCC, my state Attorney General & yours. You have exactly ( 10 ) calendar days to delete this account from my consumer report or I will seek every legal remedy available to file suit against Bridgecrest Acceptance Corporation.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation