Consumer complaint received 2023-06-03
Company: PRESTIGE FINANCIAL SERVICES INC
State: PA
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Was not notified of investigation status or results

Complaint:
In accordance with the Fair Credit Reporting Act, Prestige Financial Services is violating my rights : 15 U.S.C 1681 section 602 A : States I have the right to privacy 15 U.S. Code 1681a ( 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 ; 15 U.S.C 1681 section 604 A Section 2 : It states a consumer reporting agency can not furnish an account without my written instructions. 15 U.S. Code 1692c - Communication in connection with debt collection : ( a ) Communication with the consumer generally Without the prior consent of the consumer given directly to the debt collector or the express permission of a court of competent jurisdiction, a debt collector may not communicate with a consumer in connection with the collection of any debt 15 U.S. Code 1692b - Acquisition of location information Any debt collector communicating with any person other than the consumer for the purpose of acquiring location information about the consumer shallnot communicate with any such person more than once unless requested to do so by such person or unless the debt collector reasonably believes that the earlier response of such person is erroneous or incomplete and that such person now has correct or complete location information ; not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt ; and 15 U.S. Code 1681i - Procedure in case of disputed accuracy Description of reinvestigation procedure A consumer reporting agency shall provide to a consumer a description referred to in paragraph ( 6 ) ( B ) ( iii ) by not later than 15 days after receiving a request from the consumer for that description. According to consumer law, 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. As defined by the IRS : Even if you didn't receive a Form 1099-C, The IRS Clearly defines a charge off as Gross or Ordinary income. INCOME DOES NOT GET REPORTED ON THE CONSUMER REPORT which in fact makes your reporting of this account inaccurate! By Definition The IRS clearly says a cancelled or charge off is income. The reporting of this account as a debt is inaccurate. I am aware that under the Internal Revenue Code ( IRC ) Section 61 ( a ) ( 12 ), a canceled debt that exceeds {$600.00} is considered taxable income unless an exception applies. A charge-off is considered a canceled debt because the creditor has written off the debt as uncollectible. Therefore, a charge-off can be considered taxable income by the IRS. IRC section 6050P, The lender must file Form 1099-C and send a copy of the amount of debt canceled is {$600.00} or more and the lender is a financial institution, credit union , federal government agency , or other apolicable entity as discussed earlier in chapter 1. This is taken directly from the IRS 2021 publication.

SEND ME MY FORM 1099-C that you should have sent when you filed the account as a canceled debt.

Furthermore, I would like to point out that continuing to report a charged-off debt as delinquent or past due after the debt has been charged off is a violation of the Fair Credit Reporting Act ( FCRA ). The FCRA requires that any negative information on a consumer report must be accurate and up-to-date. Once a debt has been charged off, it is considered settled and a creditor that continues to report a charged-off debt as past due or delinquent is violating the FCRA and the debtor has the right to dispute the information with the credit reporting agencies. 

I have sent letters to Prestige Financial Services to XXXX XXXX XXXX XXXX UT XXXX and XXXX XXXX XXXX XXXX XXXX XXXX, UTAH XXXX have not responded in any form of way and have never sent a 1099-C form back about this erroneous reporting.

Company response to consumer: Closed with explanation