Consumer complaint received 2024-09-30
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: TD BANK US HOLDING COMPANY (CT)

I, XXXX XXXX, hereby submit this formal complaint against XXXX XXXX, XXXX, TD Bank, XXXX XXXX XXXX, XXXX XXXX Bank, XXXX Bank, and XXXX Bank for violations of the Fair Credit Reporting Act ( FCRA ) in relation to the improper and misleading reporting of a charged-off account. Additionally, XXXX XXXX, XXXX, and TD Bank has engaged in practices that XXXX violate federal tax law principles regarding double recovery, as established in several landmark court decisions and IRS rulings. 
XXXX. Improper Monthly Reporting of Charge-Offs XXXX XXXX XXXX XXXX, TD Bank, XXXX XXXX XXXX XXXX XXXX XXXX Bank XXXX XXXX Bank XXXX and XXXX  Bank has XXXX in the practice of reporting the account as " charge off '' every month, thereby creating the misleading impression that the account has been charged off repeatedly. Under accounting and legal standards, a charge-off is a one-time event. Repeated reporting of this charge-off constitutes inaccurate reporting and violates FCRA Section 623 ( a ) ( 1 ) ( A ) ( 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) ), which requires furnishers to provide accurate and complete information.

This inaccurate reporting is also in violation of FCRA Section 607 ( b ) ( 15 U.S.C. 1681e ( b ) ), which mandates that furnishers must adopt procedures that ensure the maximum possible accuracy of consumer information. By continuing to report the charge-off on a monthly basis, XXXX XXXX XXXX XXXX, TD Bank, XXXX XXXX XXXX XXXX XXXX XXXX Bank XXXX XXXX Bank XXXX and XXXX XXXX has XXXX extended the negative impact of this event on my XXXX XXXX. 
XXXX. Improper Reporting of Credit Limits on Charged-Off Accounts In addition to the above, XXXX, TD Bank, XXXX XXXX XXXX XXXX XXXX XXXX Bank XXXX XXXX Bank XXXX and XXXX  Bank has XXXX reported a credit limit on the charged-off and closed account. This is misleading because a charged-off account is no longer an active line of credit. Reporting a credit limit falsely suggests that there is still available credit, which affects my credit utilization ratio and further damages my credit score. This practice is in clear violation of the accuracy standards required under 15 U.S.C. 1681e ( b ), as the information furnished is neither relevant nor accurate. 
XXXX. Misleading Reporting of a XXXX Balance on a Charged-Off Account Furthermore, XXXX Bank XXXX and XXXX XXXX XXXX continues to report a XXXX balance on the charged-off accounts they have furnished on my credit report, while also maintaining the status of the account as " charged off. '' This reporting is misleading and suggests that the debt is still tied to the original creditor, even though they no longer own it, having sold it to a third party. Under Rev. Rul. 70-367, 1970-2 C.B. 37, once a bad debt deduction is taken, the debt is considered worthless, and any subsequent attempt to claim ownership or collect on it constitutes an improper attempt at double recovery. 

XXXX. Violation of Federal Tax Law Principles of Double Recovery This issue also implicates principles established in federal tax law regarding double recovery. Several key cases emphasize that creditors can not claim a bad debt deduction while simultaneously asserting continued ownership or collectibility of the debt : United States XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) : The U.S. Supreme Court ruled that a taxpayer must recognize income when a debt is XXXX to prevent benefiting from both a deduction and continued control over the debt. This principle applies here because [ Creditors Name ] can not continue reporting and benefiting from the charge-off while the debt has been XXXX or sold. 
XXXX XXXX v. XXXX, XXXX XXXX. XXXX ( XXXX ) : The XXXX XXXX ruled that once a debt is claimed as uncollectible, it can not be treated as still owed. By continuing to report the account, XXXX XXXX, XXXX, TD Bank, XXXX XXXX XXXX, XXXX XXXX Bank, XXXX Bank, and XXXX Bank are attempting to assert the existence of a debt that has already been deemed worthless. 
XXXX XXXX XXXX XXXX v. XXXX, XXXX XXXX. XXXX ( XXXX ) : This case reinforces that a creditor can not claim a bad debt deduction while simultaneously attempting to assert the debts collectibility. 
XXXX v. XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : The XXXX XXXX ruled that a debt must be proven worthless before a deduction can be claimed, and any subsequent assertion of the debts collectibility would be improper.Please also see my request to opt.