Consumer complaint received 2024-09-16
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: CAPITAL ONE FINANCIAL CORPORATION (CT)

Capital One Credit Card Services is reporting to XXXX 5 late payments on a debt that has been discharged through XXXX XXXX. Once a debt is discharged through XXXX XXXX bankruptcy, the creditor should not report late payments related to that debt to the credit bureaus. The bankruptcy discharge releases me from personal liability for the discharged debts, meaning I am no longer legally obligated to pay them, and Capital One should update their records to reflect this. 

Capital One is not supposed to continue pursuing collection or reporting negative information related to the discharged debt. The same way in which my mortgage lender will not report my on time payments, because they can no longer do any reporting on the account period! As this was the response when I went to the CFPB about my mortgage payments. 

XXXX. Legal Implications of Bankruptcy Discharge When a debt is discharged in XXXX XXXX bankruptcy, its essentially erased from the debtors personal liability. The Bankruptcy XXXX stipulates that the debtor is no longer obligated to pay that debt, and creditors are prohibited from attempting to collect on it. This legal release also extends to reporting negative information about that debt. 

Source : Bankruptcy Code, 11 U.S.C. 524 ( a ) ( 2 ) states that a discharge operates as an injunction against the commencement or continuation of an action, the employment of process, or an act, to collect, recover, or offset any such debt as a personal liability of the debtor. 

2. Credit Reporting Rules Credit reporting is governed by the Fair Credit Reporting Act ( FCRA ), which mandates that credit reports must be accurate and up-to-date. The FCRA requires that information in a credit report must be complete and accurate ( 15 U.S.C. 1681s-2 ). Since a debt discharged through bankruptcy should not be collected or reported as delinquent, continued reporting of late payments for that debt is considered inaccurate. 

Source : Fair Credit Reporting Act, 15 U.S.C. 1681i ( a ) ( 1 ) ( A ) mandates that a credit reporting agency must " correct or delete inaccurate, incomplete, or unverifiable information. '' 3. Precedents and Case Law Courts have ruled on the improper reporting of discharged debts. In XXXX re XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  the court found that a creditors continued reporting of a discharged debt was a violation of the discharge injunction. Creditors in such cases were found to have violated the discharge order and were held accountable for damages. 

Source : In re XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ) - The court ruled that reporting debts discharged in bankruptcy violates the discharge injunction and can result in damages. 

4. Enforcement and Penalties Creditors who continue to report discharged debts may face penalties. Under 11 U.S.C. 105 ( a ), bankruptcy courts have the authority to issue any order necessary to enforce the provisions of the Bankruptcy Code, including the discharge injunction. In cases where creditors violate this injunction, they may be subject to contempt proceedings and may be ordered to pay damages, including punitive damages if warranted.

Source : 11 U.S.C. 105 ( a ) - Bankruptcy courts have broad authority to enforce discharge orders and issue sanctions for violations. 

Bottom line, Capital One is legally and ethically bound to cease all collection activities and REPORTING RELATED to DISCHARGED DEBT. Continued reporting of late payments for this debt is considered a violation of the Bankruptcy Code and the FCRA. Courts have taken actions against creditors in such cases, underscoring the importance of accurate credit reporting post-bankruptcy.

I want the late payments removed immediately, they are suppressing my credit score and damaging my credit. What Capital One is doing as of today is not legal.