Consumer complaint received 2024-09-03
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt was already discharged in bankruptcy and is no longer owed
Company: Mandarich Law Group, LLP (NV)

XXXX XXXX XXXX XXXX Care of XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Nevada XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX XXXX, IL XXXX __________________________ Subject : Dispute of Inaccurate Information on Credit Report To Whom It May Concern, I am writing to dispute inaccurate information on my credit report concerning the following accounts : 1. XXXX XXXXXXXX XXXX XXXX XXXX Account Number : # XXXX Charge Off Amount : {$4100.00} Charge Off Date : XX/XX/XXXX XXXX. **XXXX XXXX** Account Number : # XXXX Charge Off Amount : {$2400.00} Charge Off Date : XX/XX/XXXX XXXX. XXXX XXXXXXXX XXXX XXXX XXXX Account Number : # XXXX Undesignated Owner 4. XXXX XXXX Account Number : # XXXX Charge Off Amount : {$2100.00} Charge Off Date : XX/XX/XXXX XXXX. **XXXX XXXX XXXXXXXX Account Number : # XXXX Charge Off Amount : {$980.00} Charge Off Date : XX/XX/XXXX Additionally, the following collection accounts are disputed : 1. XXXX XXXX XXXX XXXX Account Number : # XXXX [ missing valid Purchase Agreement ] Collections Amount : {$980.00} Collections Opened : XX/XX/XXXX XXXX. XXXXXXXX XXXX XXXX** [ Litigation ] Account Number : # XXXX [ missing valid Purchase Agreement ] Collections Amount : {$1600.00} Collections Opened : XX/XX/XXXX XXXX. XXXX XXXX XXXX** [ Litigation ] Account Number : # XXXX [ missing valid Purchase Agreement ] Collections Amount : {$1800.00} Collections Opened : XX/XX/XXXX This account was charged off by [ XXXX XXXXXXXX XXXX XXXX XXXXXXXX. ], and it has now been transferred to your organization [ XXXX XXXX XXXX ]. I did not receive a XXXX form from the original creditor or from your organization indicating that the debt has been canceled and reported as income to the IRS. Despite this, the account remains listed on my credit report in a manner that is damaging and misleading. Which are Grounds for Cease and Desist due to Inaccurate Reporting ( FCRA ) : Under the Fair Credit Reporting Act ( FCRA ), all information reported to credit bureaus must be accurate and complete. The continued reporting of this charged-off account by your organization, despite its unclear status and lack of a 1099-C form, raises serious concerns about the accuracy of the information being reported. Fair Debt Collection Practices Act ( FDCPA ) : As the current owner of this account, your organization is responsible for ensuring that the debt is reported accurately and fairly. Reporting a charged-off account without clarity on its tax status may constitute a violation of the FDCPA, especially if the debt has already been effectively discharged by the original creditor. Potential Tax Implications : The absence of a 1099-C form leaves ambiguity regarding the status of this debt. If the debt was forgiven or canceled, it should not continue to be reported as collectible, as this misrepresents the true state of the account. Demand for Action : I hereby demand that you : Immediately update the status of this account with all credit reporting agencies to reflect its accurate and current status. Cease all reporting of this account to credit reporting agencies until the matter is resolved and all discrepancies are clarified. Provide written confirmation within 30 days that the necessary corrections have been made, or that a 1099-C form will be issued if the debt is indeed canceled.

These accounts are in violation of multiple laws set forth by Congress. According to 15 U.S. Code 1681a ( 2 ) ( a ) ( i ), a consumer report should not include information solely related to transactions or experiences between the consumer and the reporting entity. Additionally, 15 U.S. Code 1681s-2 ( a ) ( 1 ) ( A ) stipulates that a person shall not furnish information to any consumer reporting agency if they know or have reasonable cause to believe the information is inaccurate. Furthermore, under IRS guidelines, a charge-off is considered gross or ordinary income and should be reported on a 1099-C form if the debt is greater than {$600.00}. Since I did not receive a 1099-C for these amounts, the reporting of these accounts as debts is inaccurate.
I have also revoked any authorization previously given under the Privacy Act of 1974 and the FCRA, and I am opting out of any further reporting as outlined under 5 U.S. Code 552a and 15 U.S.C. 6802.

I request that you investigate these accounts and correct or remove the inaccurate information from my credit report. Please provide a written response within 30 days regarding the results of your investigation.

Thank you for your prompt attention to this matter. 

Sincerely, XXXX XXXX XXXX XXXX Protected Consumer, without recourse.