Consumer complaint received 2021-03-10
Company: CREDIT ACCEPTANCE CORPORATION
State: TX
Product: Vehicle loan or lease
Sub-product: Lease
Issue: Struggling to pay your loan
Sub-issue: Problem after you declared or threatened to declare bankruptcy

Complaint:
RE : XXXX XXXX XXXX XXXX XXXX XXXX XXXX ACCOUNT # XXXX On or about, XX/XX/XXXX I received a XXXX notice from the IRS. The notice stated that the IRS received a Form XXXX from XXXX XXXX on XX/XX/XXXX. The Form XXXX reported a cancellation of debt in the amount of {$8400.00}. This caused my XXXX tax return, which was filed on or about XX/XX/XXXX, to be flagged for review. The IRS is now stating that I owe {$4400.00} for not reporting the income on the XXXX. 

The issue that I am having is that I filed for Chapter XXXX Bankruptcy and the debt owed to XXXX XXXX was discharged in XXXX. Apparently, XXXX XXXX depends on a third party to receive bankruptcy notifications. They never received notification of my discharge and therefore, was showing my debt still being owed. This was no fault of mine. 

After eight years, XXXX XXXX decides to file the XXXX. Upon receipt of the IRS notification, I contacted XXXX XXXX. I advised them that the debt had been discharged. I spoke with a bankruptcy representative named XXXX. She pulled a copy of the discharge from PACER and promised to re-open my account in order to flag it as a bankruptcy discharge. She also promised to reach out to the finance team to have the XXXX situation corrected. 

I waited two weeks and called back to follow up. At that time, I spoke with XXXX. XXXX was very helpful and noted that XXXX did not follow through on my request. Upon permission from her supervisor ( XXXX ), XXXX reopened my account while I was on the line. She added a discharge to it and submitted the request to the finance team. After a week, I called back and spoke with another representative who was very abrasive ( I did not get her name due to the tone of the conversation ). She told me that I had to contact my tax professional because they had filed the form. She stated that the supervisor ( XXXX ) told her that there was nothing further that could be done. 

This was contrary to all that I had been told. After being told that she wasn't going to argue with me, I informed this representative that I was going to hang up and call back. When I did, all of my information appeared to have been deleted from the automated system. 

I got another pleasant representative, I didn't get her name either, but she transferred me to XXXX. XXXX advised that the finance team was being unresponsive and she couldn't give out their contact information. I went on to explain to her that this was the fault of XXXX XXXX for not doing their due diligence in managing their bankruptcy accounts. 

I now owe the IRS and they have confiscated my tax refund. This by no means was my fault at all. Because XXXX XXXX erroneously filed a XXXX eight years after the discharge, they should be held liable in fixing this. They are breaking Federal Bankruptcy laws by pursuing a debt after it has been discharged. They have a team of professionals that have the ability to expeditiously correct this issue.

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