Consumer complaint received 2023-07-18
Company: SYNCHRONY FINANCIAL
State: NC
Product: Debt collection
Sub-product: Credit card debt
Issue: Attempts to collect debt not owed
Sub-issue: Debt is not yours

Complaint:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX NC, XXXX D.O.B : XX/XX/XXXX SSN : XXXX XX/XX/XXXX To whom it may concern, SYNCHRONY BANK , I am putting you on notice that you have violated my rights as a consumer. The charged off account you furnished on my consumer credit report is inaccurate and you have written off this charged off account on your taxes and received a tax credit for it. In addition to getting a tax credit for this cancelled debt you then sell the cancelled debt to a NON-AFFILIATED DEBT COLLECTOR ( XXXX XXXX XXXX ) this violates 15 U.S. Code 6802 ( b ) ( A ) ( B ) ( C ) you literally shared and sold my personal identifiable Information, my name, my address, my phone number, and my social security number with a complete stranger without my consent which is identity theft for additional profits. Once a debt has been canceled by the lender and the lender has written that debt off on their taxes and received a tax credit for that debt it can not be sold to a NON AFFILIATED third party debt collector for additional profits because the original creditor has written off the debt and received a tax credit for that debt and they are required to send the consumer a 1099-C that they must file on their federal income tax return because the account is no longer a charge off or debt it is now gross ordinary income as defined by the IRS. The consumer must file a 1099-C that they receive from the original creditor on their federal income tax return even if the consumer does not receive a form 1099-C, from the original creditor they must report the cancelled debt as gross ordinary income on their federal income tax return. The consumers income is not a part of their consumer credit report. The original creditor ( SYNCHRONY BANK ) and the debt collector who they sold the account to ( XXXX XXXX XXXX ) have fraudulently furnished inaccurate accounts on my consumer credit report. The IRS considers a cancellation of debt or charge off as gross ordinary income which must be filed on the consumers federal income tax return. The fraudulent actions of the original creditor ( SYNCHRONY BANK ) along with ( XXXX XXXX XXXX ) the debt collector they sold the account to has caused me and my family financial stress that has affected our general mode of living this is a a nightmare! I would like the CFPB to investigate the actions of these two companies their actions violate multiple consumer laws that they continue to ignore and refuse obey. The U.S. CONGRESS put consumer laws in place to protect consumers so that the proper authorities will enforce them and bring to justice the violators that break them! 
( 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 chapter1.

The above paragraph is taken directly from IRS publication 2021. 

INCOME DOES NOT GET REPORTED ON THE CONSUMER CREDIT REPORT!!! 

SYNCHRONY BANK AND XXXX XXXX SERVICES HAVE VIOLATED : 15 U.S. Code 1681s2 - 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 the person 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 15 U.S. Code 6802 - Obligations with respect to disclosures of personal information ( a ) Notice requirements Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title.

( b ) Opt out ( 1 ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly 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 demand that you delete this erroneous and inaccurate account now from all major consumer reporting agencies! 


XXXX XXXX

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 non-monetary relief