Consumer complaint received 2024-10-23
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Experian Information Solutions Inc. (LA)

I am writing to file a formal complaint regarding the inaccurate and misleading reporting of my auto loan account with XXXX ( Account XXXX : XXXX ) on my credit reports from XXXX XXXX Experian, and XXXX XXXX These inaccuracies are in violation of the Fair Credit Reporting Act ( FCRA ) and have caused undue harm to my creditworthiness. Despite disputing these errors directly with the credit reporting agencies, the issues remain unresolved. 

I have attempted to resolve this matter with the credit bureaus multiple times, yet they continue to report inaccurate and incomplete information. As a result, I am requesting immediate correction. If these issues are not addressed and removed promptly, I will be left with no choice but to pursue legal action for non-compliance under the Fair Credit Reporting Act.

Specific Inaccuracies : Reporting of a Cancelled Debt After Repossession : I received a 1099-C form from XXXX for the cancellation of this debt. Under IRS guidelines, this debt is considered forgiven and is treated as income for tax purposes. Despite this, the credit bureaus are still reporting a balance owed of {$11000.00} as of XX/XX/XXXX. This is a violation of FCRA Section 607 ( b ), which mandates the accurate reporting of information. The balance should be updated to {$0.00} since the debt has been canceled and is no longer collectible. 
Continued Reporting of Negative Information After Repossession : The repossession occurred on XX/XX/XXXX, but all three credit bureaus continue to report negative activity, including repossession ( RP ) status and late payments, well after the account was closed. For example, XXXX shows delinquency throughout XXXX and XXXX, which is inaccurate because no negative information should be reported post-repossession.

Conflicting Dates of Last Activity ( DOLA ) and Closed Dates : The date of last activity is inconsistently reported across the bureaus : XXXX and XXXX report it as XX/XX/XXXX, while Experian reports it as XX/XX/XXXX. 
The correct date is XX/XX/XXXX, the date of repossession. The continued reporting of recent activity is inaccurate and misleading. 
Past Due Amount Reported After Repossession : All three bureaus report a past due amount of {$11000.00} as of XX/XX/XXXX, despite the debt being forgiven via the 1099-C form. This is inaccurate and misleading, as no past due balance exists. The past due amount must be removed or corrected to reflect {$0.00}.

Inconsistent Payment History Reporting : Both XXXX and Experian are reporting a history of late payments after the repossession date, which is inaccurate. This includes continuous RP ( repossession ) codes throughout XXXX and XXXX. No further payment activity should be reported after the repossession date.

Income Reporting : Under the FCRA, credit reporting agencies are prohibited from reporting income. The continued reporting of a balance that has been forgiven via 1099-C amounts to improper income reporting. This balance must be removed from my credit report as it has been canceled and is now considered income for tax purposes. 
Failure to Reflect Dispute Status : XXXX and XXXX show the account as " not disputed, '' and Experian omits any dispute status entirely. Under FCRA Section 611, if a consumer disputes an account, the dispute must be noted on the credit report until resolved. All three bureaus have failed to accurately reflect the ongoing dispute.

IRS publication 4681 states General Rule : " If a debt for which you are personally liable is canceled or forgiven, you must include the canceled amount in your gross income unless a specific exclusion or exception applies. '' Form 1099-C : " A lender who cancels or forgives a debt of {$600.00} or more is required to file Form 1099-C with the IRS, and you must report this as income on your tax return. The amount reported on Form 1099-C is considered taxable income, and the creditor should no longer attempt to collect this amount. '' This section explains that once a debt has been forgiven and reported as income, the creditor can no longer pursue collection efforts.