Consumer complaint received 2024-07-24
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Experian Information Solutions Inc. (DE)

To Whom It May Concern, I am writing to formally lodge a complaint against XXXX XXXX for their egregious failure to properly charge off an account that has become clearly uncollectible. Despite my previous correspondence, XXXX XXXX has failed to address the primary issue : their blatant disregard for federal regulations mandating the charge-off of debts that are uncollectible after a specified period of delinquency. 

XXXX XXXX XXXX has misinterpreted my initial dispute, focusing instead on an irrelevant detail concerning the pickup of my vehicle. The real issue at hand is their failure to charge off an account that has been delinquent for over four years, clearly meeting the criteria of an uncollectible debt. This failure constitutes a violation of several federal laws and regulations, including the Fair Credit Reporting Act ( FCRA ), the Fair Debt Collection Practices Act ( FDCPA ), and IRS guidelines on bad debts.

Violations and Relevant Laws Failure to Charge Off as Bad Debt : IRS Regulations : Creditors are required to charge off debts that are clearly uncollectible, typically after 180 days of delinquency ( IRS Regulation Section 1.166-2 ( a ) ). By not charging off this account after four years, XXXX XXXX has violated this requirement, potentially affecting their ability to claim deductions for bad debts. 
False or Misleading Representations : FDCPA ( 15 U.S.C. 1692e ) : Debt collectors, including creditors who collect their own debts, are prohibited from using false, deceptive, or misleading representations to collect a debt. Misrepresenting the status of an account by failing to properly charge it off is a direct violation of this provision ( XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) ). 
Unfair Practices : FDCPA ( 15 U.S.C. 1692f ) : The FDCPA prohibits debt collectors from using unfair or unconscionable means to collect or attempt to collect a debt. Improperly handling the charge-off process, as evidenced by the prolonged failure to charge off an uncollectible account, constitutes an unfair practice ( XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX & XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) ). 

Accuracy and Integrity of Information : FCRA ( 15 U.S.C. 1681s-2 ) : Creditors must ensure that the information they report to credit bureaus is accurate and complete. By failing to charge off an uncollectible debt, XXXX XXXX is reporting inaccurate information, violating their obligations under the FCRA XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX ( XXXX ) ). 

Demand for Action Given the clear violations outlined above, I request the following actions from the CFPB : Immediate Investigation : Conduct a thorough investigation into XXXX XXXX 's failure to charge off uncollectible debts in accordance with federal regulations. 

Correction of Inaccurate Reporting : Ensure that XXXX XXXX deletes the reporting on my credit report and properly charges off the account in question. 

Regulatory Penalties : Impose appropriate penalties on Credit Acceptance for their repeated violations of the FCRA, FDCPA, and IRS regulations. 

Consumer Redress : Ensure that I, and other affected consumers, receive any damages or restitution due as a result of XXXX XXXX 's improper handling of charge-offs. 

I trust that the CFPB will take swift and decisive action to address these violations and hold XXXX XXXX accountable for their misconduct. Please keep me informed of the progress and outcome of this investigation.