Consumer complaint received 2024-08-06
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: EQUIFAX, INC. (GA)

XXXX Dear CFPB, Subject : Complaint Regarding Charged-Off Accounts I am writing to formally lodge a complaint regarding a charged-off account that is affecting my credit report and financial standing. 
The details of the account are as follows : XXXX XXXX XXXXXXXX. XXXX XXXX  has charged-off this account and as such the account has been eliminated from an assets list when it is lost or is deemed to be worthless. Additionally, by charging off this account, XXXXXXXX XXXX has listed the debt as an expense in its profit-and-loss statement, which reduced the companys overall tax liability. Along with the reduction in tax liability that XXXXXXXX XXXX has enjoyed by placing my account in charge-off status, the charge-off is a certificate of indebtedness, i.e. an asset that can be sold on the open market.

For me, a federally protected consumer, this charge-off, for tax purposes, is a cancellation of debt which serves income. Per the IRS 2023 Publication 4681, Generally, if you owe a debt to someone else and they cancel or forgive that debt for less than its full amount, you are treated for income tax purposes as having income and may have to pay tax on this income. By definition income is not a debt and must not be included on a consumer credit report. It is of the utmost importance that this account reporting be rectified immediately. 
XXXX XXXX is in receipt of a letter dated XXXX in which I requested that the account be updated to closed. By way of charging-off the account and not filing the proper documents, XXXXXXXX XXXX in reporting this account, and thus my transaction history to a non-related third-party affiliate, is in violation of several federal laws and its own privacy policy. According to 16 CFR 313.10 XXXX XXXX  was required to provide an opportunity for me, the consumer, to opt out of disclosure of nonpublic personal information. 15 U.S. Code 6809 ( 4 ) The term nonpublic personal information means personally identifiable financial information ( ii ) resulting from any transaction with the consumer or any service performed for the consumer.

Furthermore, 15 USC 6802 ( b ) ( c ) states that " A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless the consumer is given an explanation of how the consumer can exercise that nondisclosure option. '' XXXX XXXX did not provide a clear and conspicuous notice that accurately explains the right to opt out of providing my nonpublic personal information related to my transaction history and has been, until now, unresponsive to my recent request to opt-out which are violations of 12 CFR 1016.1, 12 CFR 1016.4, 12 CFR 1016.7 ( a ) ( 1 ), 12 CFR 1016.7 ( a ) ( 2 ) ( iii ), 12 CFR 1016.7 ( g ), 12 CFR 1016.7 ( h ), and 12 CFR 1016.7 ( i ) among others.

As a consumer, I have the right to ensure my private information, in the form of transaction history, is not shared, which is backed by 15 USC 6801, which states " It is the policy of the Congress that each financial institution has an affirmative and continuing obligation to respect the privacy of its customers and to protect the security and confidentiality of those customers nonpublic personal information. 'XXXX XXXX XXXX is a financial institution by definition under that title. Effective immediately, I am opting-out of any and all authorization I, the consumer, may have given XXXX XXXX written, unwritten, verbal and nonverbal to report my information to a third party, per 15 USC 6802 .

I am asking for it to be ordered to update the account to reflect the closed and placed in a paid as agreed status as is the true status of the account. Furthermore, I am requesting that XXXX XXXX  respect my financial privacy by removing the account balance and number. Furthermore, I am requesting that XXXX XXXX be fined {$1000.00} per violation for Civil Liability for knowing noncompliance under 15 U.S.C. 1681n ( b ) and that I be awarded {$1000.00} under 15 U.S.C. 1681n ( a ) ( 1 ) ( A ) for damages that I have suffered and the resources expended to rectify this issue. 
Regards, XXXX XXXX XXXX XXXX.