Consumer complaint received 2018-06-26
Company: CREDIT ACCEPTANCE CORPORATION
State: TX
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:
I financed a vehicle through Credit Acceptance. I week after purchasing, major mechanical damage was discovered, resulting in Cred. Accptnc. to do what they call " pass '' on the vehicle. Pass meaning they were not going to attempt to repossess it due to the extent of the mechanical failures that were present at the time of purchase. The major mechanical issues did not appear until about a week after I had driven the vehicle home. The original seller of the vehicle had reset the fault codes to make the car appear in working condition. After the pass Cred. Accptnc. begin offering a settlement to settle out the account which were twice as much as the vehicles worth. In XX/XX/2017 the vehicle was impacted by Hurricane Harvey. I informed Cred. Accptnc. who then begin to report this on my credit file. The account was sent charged off and reported as such on my credit file. Every month for the past 8-9 months there are inconsistencies with their reporting to credit agencies. The total balance due and past due amounts seem to fluctuate, increasing each month. I contracted XXXX XXXX who informed me that legally once an account is charged off, a creditor is only allowed to charges a specific amount of interest. Cred. Accptnc. has been reporting inaccuracies on an almost monthly basis. I have disputed this account every month for the past 6 months. Each dispute has ended with Cred. Accptnc. having to correct the past/balance due only to report it incorrectly again the following month by adding to my balance/past due amount. I contacted them and asked them to cease from further inaccurate reporting, per the request of XXXX XXXX XXXX, because it is doing major damage to my credit file. Each time it is reported inaccurately it is taking away 68-70 points from my credit score. I spoke with the 3 credit bureaus who advised me to file a complaint with the XXXX and if necessary, take legal action. My credit fluctuates 68-70 points every other month making it almost impossible to stabilize my credit. 

The credit reporting inaccuracies and inconsistencies have been occurring for quite some time now. The account was reported as charged off several times, the latest being inXX/XX/2017. The law states that creditors can not increase the balances and past due amounts on charged off accounts but are allowed to charge interest but only up to a certain percentage. At the time of the account being reported as charged off in XX/XX/2017 the balance was XXXX. Creditors are required to maintain the charged off amount when reporting plus a limited amount of interest, if any. Once charged off late payment are not to continue to increase due to the charged off status. Credit Acceptance made claims that my balance and past due amount increased on my credit report as more payment is due/became past due, but the amount of the increase that has been/is being reported is inconsistent with the monthly payment amount of XXXX. My balances over the last few months have fluctuated from XXXX, to XXXX, back to XXXX, to XXXX, sometimes changing without a 30 billing period in between. The amounts reported continue to fluctuate up and down and have been more and sometimes less than the amount of the monthly payment.

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