Consumer complaint received 2023-03-29
Company: PENTAGON FEDERAL CREDIT UNION
State: FL
Product: Debt collection
Sub-product: I do not know
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
So i have to actually show you how your violating the fair credit reporting act Lets begin. 

1 According to Title 15 USC 6802 - Obligations with respect to disclosures of personal information ( XXXX ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institutionclearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option I never got such disclosures XXXX According to title 15 USC 1681s-2 Responsibilities of Furnishers of information to consumer reporting agencies ( a ) Duty of furnishers of information to provide accurate information ( 1 ) Prohibition ( A ) Reporting information with actual knowledge of errors A person shall not furnish any information relating to a consumer to any consumer reporting agency if theperson knows or has reasonable cause to believe that the information is inaccurate. 
( B ) Reporting information after notice and confirmation of errors A person shall not furnish information relating to a consumer to any consumer reporting agency if ( i ) the person has been notified by the consumer, at the address specified by the person for such notices, that specific information is inaccurate; and ( ii ) the information is, in fact, inaccurate. 
I have made it known to them about this XXXX. By Definition the IRS Clearly says a canceled debt or Charge off is income. The reporting of this account as a debt is inaccurate.A debt is deemed canceled on the date an identifiable event occurs or, if earlier, the date of the actual discharge if you choose to file Form 1099-C for the year of cancellation.

An identifiable event is one of the following. 
A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. 
A creditor 's defined policy can be in writing or an established business practice of the particular nonpayment period expires is a defined policy. 
A creditor 's established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is defined policy In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged for less than the amount you must pay, the amount of the canceled debt is taxable and you must report the canceled debt on your tax return for the year the cancellation occurs. The canceled debt isn't taxable, however, if the law specifically allows you to exclude it from gross income. These specific exclusions will be discussed later. 

After a debt is canceled, the creditor may send you a Form 1099-C, Cancellation of Debt showing the amount of cancellation of debt and the date of cancellation, among other things. If you received a Form 1099-C showing incorrect information, contact the creditor to make corrections. For example, if the creditor is continuing to try to collect the debt after sending you a Form 1099-C, the creditor may not have canceled the debt and, as a result, you may not have income from a canceled debt. You should verify with the creditor your specific situation. Your responsibility to report the taxable amount of canceled debt as income on your tax return for the year when the cancellation occurs doesn't change whether or not you receive a correct Form 1099-C.

In general, you must report any taxable amount of a canceled debt as ordinary income from the cancellation of debt on Form 1040, U.S. Individual Income Tax Return, Form 1040-SR, U.S. Tax Return for Seniors or Form 1040-NR, U.S. Nonresident Alien Income Tax Return ( attach Schedule 1 ( Form 1040 ), Additional Income and Adjustments to IncomePDF ) if the debt is a nonbusiness debt, or on an applicable schedule if the debt is a business debt. See Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments ( for Individuals ). Cancellation of a debt may occur if the creditor can't collect, or gives up on collecting, the amount you're obligated to pay. 

So XXXX XXXX XXXX is Blatantly trying to make Collections on Debt that doesn't exist they admitted it on there own letter the account was charged off as a credit loss on XX/XX/2017 In general, if you have cancellation of debt income because your debt is canceled, forgiven, or discharged you must report any taxable amount of a canceled debt as ordinary income from the cancellation of debt on Form 1040, U.S.

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