Consumer complaint received 2024-06-11
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Experian Information Solutions Inc. (FL)

As of XXXX, upon review of my most recent credit profile with Experian, XXXX and XXXX, there is a charge-off listed with XXXX XXXX XXXX for {$4200.00}. According to the IRS under Instructions for form 1099-C, A debt is deemed canceled when : A discharge of indebtedness because of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. A creditor 's defined policy can be in writing or an established business practice of the creditor. A creditor 's established practice to stop collection activity and abandon a debt when a particular nonpayment period expires is a defined policy. Lenders or creditors are required to issue Form 1099-C, Cancellation of Debt, if they cancel a debt owed to them of {$600.00} or more. Generally, an individual taxpayer must include all canceled amounts ( even if less than {$600.00} ) on the " Other Income '' line of Form 1040. If you are required to file Form 1099-C, you must provide a copy of Form 1099-C or an acceptable substitute statement to each debtor. On the IRS website under : Topic no. 431, Canceled debt Is it taxable or not? Paragraph 6 states : In general, you must report any taxable amount of a canceled debt as ordinary income. According to Experian, a credit report is a record of your history of managing and repaying debt. The charge-off evidences that the debt was canceled. If a Charge-Off is a canceled debt, therefore, a charge-off is ordinary income. The IRS states that Ordinary Income is supposed to be reported as Other Income on form 1040. Only debt gets reported on a consumer report, not income, therefore, reporting a charge-off on my consumer report is inaccurate. As a result, Experian, XXXX and XXXX has violated numerous provisions of the Fair Credit Reporting Act. Firstly, 15 U.S. Code 1681 ( a ) ( 1 ) states : The banking system is dependent upon fair and accurate credit reporting. Inaccurate credit reports directly impair the efficiency of the banking system, and unfair credit reporting methods undermine the public confidence which is essential to the continued functioning of the banking system. 15 U.S. Code 1681 ( a ) ( 4 ) There is a need to insure that consumer reporting agencies exercise their grave responsibilities with fairness, impartiality, and a respect for the consumers right to privacy. 15 U.S. Code 1681e ( b ) Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. As a result, the incompetent reporting of Experian, XXXX and XXXX have gravely undermined the banking system, infringed federal regulations and misrepresented my financial standing as the above listed codes are being violated. This has caused severe damage to my character, my reputation, my general mode of living and my ability to obtain credit for personal and household purposes. Your inaccurate reporting have damaged my livelihood. I respectfully request the Consumer Financial Protection Bureau to investigate this matter thoroughly and take appropriate action against Experian, XXXX and XXXX for their egregious violations of federal statutes and remove the XXXX XXXX XXXXXXXX Charge Off of {$4200.00} from my credit profile. XXXX XXXX Without Recourse