Consumer complaint received 2022-09-29
Company: CAPITAL ONE FINANCIAL 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:
Capital One is violating my rights as a consumer., even when the company has been put on notice about violations and given the chance to cure Capital One has denied deleting this account from my consumer report. Im going to list the violations. 

Capital One Account ending in XXXX Capital One is reporting the account as a charged off account to my consumer report. The IRS defines a charged off account as gross or ordinary income, it is cancelled debt. The gross or ordinary income is taxable in which the consumer must repost as income to the IRS. The status of this account is not a debt but INCOME and income does not get reported to a consumer report. This is a violation of the FCRA for responsibility of fairness and accurate reporting. A settlement letter that Capital One will try to present does not change the status of the account which is INCOME. 

Capital One is reporting late payments to my consumer report which is a violation of the FCRA. 
15 U.S. Code 1681a - Definitions ; rules of construction ( 2 ) Exclusions.Except as provided in paragraph ( 3 ), the term consumer report does not include ( i ) report containing information solely as to transactions or experiences between the consumer and the person making the report ; The law clearly states a consumer report does not include transactions or experiences. Transactions would be the late payment history that Capital One is reporting to my consumer report. 

Capital One is violating law 15usc 1681a ( d ) ( 2 ) ( B ) ( 2 ) Exclusions.Except as provided in paragraph ( 3 ), the term consumer report does not include ( B ) any authorization or approval of a specific extension of credit directly or indirectly by the issuer of a credit card or similar device ; The term credit credit which is a social security card that is used under Truth and Lending is defined as a Credit Card. 

15 U.S. Code 1602 - Definitions and rules of construction ( l ) The term credit card means any card, plate, coupon book or other credit device existing for the purpose of obtaining money, property, labor, or services on credit. 

The law clearly states any authorization or approval of a specific extension of credit as a result of a credit card device ( social security card ) is excluded from a consumer report. 

Another violation is under the Gramm-Leach-Bliley Act. Discloses are to be given to the consumer which I never been given by Capital One and all conditions have to be met in order for Capital One to disclose my non public personal information to non affiliated third parties. ( consumer reporting agencys. ) 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. 

In addition the Federal Trade Commission states on their website that these discourses are to be given to the customer yearly. I have yet to receive these disclosures. The Federal Trade Commission states without proper consent according to the law it is fraud or identity theft under 18 U.S. Code 1028- Fraud and related activity in connection with identification documents, authentication features, and information. 

Under GLBA, penalties for non-compliance can include fines of up to {$100000.00} per violation, with fines for officers and directors of up to {$10000.00} per violation. 

I will be submitting a complaint to the FTC against Capital One for non compliance. 

Capital One has collected on their insurance premium through the finance charge associated with the account. 

15 U.S. Code 1605 - Determination of finance charge ( a ) Finance charge defined Except as otherwise provided in this section, the amount of the finance charge in connection with any consumer credit transaction shall be determined as the sum of all charges, payable directly or indirectly by the person to whom the credit is extended, and imposed directly or indirectly by the creditor as an incident to the extension of credit. The finance charge does not include charges of a type payable in a comparable cash transaction. The finance charge shall not include fees and amounts imposed by third party closing agents ( including settlement agents, attorneys, and escrow and title companies ) if the creditor does not require the imposition of the charges or the services provided and does not retain the charges. Examples of charges which are included in the finance charge include any of the following types of charges which are applicable : ( 5 ) Premium or other charge for any guarantee or insurance protecting the creditor against the obligors default or other credit loss.

Also, the company has also been relieved of the tax burden with charging off the account. Their is case law behind this : Discover Bank vs Shimer, 36 Misc 3d 1214 ( a ) holding that it is inequitable to allow a creditor to belatedly enforce the alleged debt after it received the tax benefit of the charge off.

Franklin Credit Mgmt Corp vs Nicholas, XXXX  it would be inequitable to require that ( Defendant ) report the discharge of debt as income on his federal tax return or face the potential tax consequences and hold that the plaintiff may continue to hold him liable on the debt Amtrust Bank vs Fossett, 223 Ariz 438 ( issuance of form 1099c after debt was written off is " XXXX XXXX evidence '' that debt had been discharged by creditor, sufficient to create an issue of fact Capital One has caused me and my family severe harm due to your negligence and disregard for following federal laws put in place to protect the consumer. I have put the company on notice of the violations. This is a final opportunity to CURE and DELETE this account from my consumer report.

15 U.S. Code 1681n - Civil liability for willful noncompliance ( a ) In general Any person who willfully fails to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of ( 1 ) ( A ) any actual damages sustained by the consumer as a result of the failure or damages of not less than {$100.00} and not more than {$1000.00} ; or ( B ) in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or {$1000.00}, whichever is greater ; ( 2 ) such amount of punitive damages as the court may allow ; and ( 3 ) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorneys fees as determined by the court.

Company response to consumer: Closed with explanation