Consumer complaint received 2024-10-27
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: U.S. BANCORP (NJ)

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NJ XXXX XX/XX/year> XXXX XXXX  XXXX XXXX XXXX XXXX, MN XXXX Subject : Legal Demand for Compliance and Full Documentation Account Number XXXX Dear US Bank Customer Advocacy Team , This letter serves as my formal response to US Banks communication dated XX/XX/year>, regarding the above-referenced account. I find your response inadequate and legally deficient under federal consumer protection laws, including the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ), the Dodd-Frank Acts UDAAP provisions , and IRS regulations governing Form 1099-C. In addition, I reference the New Jersey Consumer Fraud Act ( CFA ) and other New Jersey consumer protection standards. 
As a consumer, I am afforded explicit rights under these laws, and US Banks handling of this account does not meet the legal standards required to ensure accuracy, transparency, and fairness. I am demanding that US Bank address the following violations and take immediate corrective actions. 
1. Fair Credit Reporting Act ( FCRA ) Compliance Mandate for Accurate and Complete Reporting Under 15 U.S.C. 1681s-2 ( a ), US Bank , as a data furnisher, is legally obligated to report only complete and accurate information to credit reporting agencies. The law mandates full verification of debt details to prevent inaccurate reporting that can harm consumer credit profiles. 
US Bank has reported the balance as " charged off '' but continues to list a deficiency balance, without a clear and detailed calculation provided to me. The burden of proof is on US Bank to validate the accuracy of the amount reported to CRAs, including each fee, interest, or cost included in this balance. 
Action Required : I demand an immediate recalculation and verification of the deficiency balance, with a full itemization of all charges post-repossession, as required under FCRA. Any errors found must be corrected across all CRAs to reflect accurate reporting in compliance with FCRA standards. 
2. Fair Debt Collection Practices Act ( FDCPA ) Prohibition of Misleading and Unfair Collection According to 15 U.S.C. 1692e and 1692f, any attempt to collect a debt must be free from deceptive, misleading, or unfair practices. By marking the account as " charged off '' and simultaneously asserting a remaining balance without transparent and itemized justification, US Banks actions may constitute misleading collection activity. Under FDCPA, I am entitled to a complete breakdown of any claimed debt, including clear documentation of how the deficiency balance was calculated. 
Action Required : I demand that US Bank provide a full, itemized, and independently verifiable accounting of this deficiency balance, breaking down the total into specific amounts for repossession costs, sale proceeds, interest, fees, and other charges. This accounting must adhere strictly to FDCPA standards to ensure no unfair or deceptive practices are involved. 
3. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Consumer Protection Against Unfair Practices The Dodd-Frank Act, under 12 U.S.C. 5531 and 5536, prohibits any acts or practices that are deemed unfair, deceptive, or abusive toward consumers. By failing to provide full documentation and closing this dispute prematurely without addressing the full scope of my concerns, US Bank is engaging in practices that impair my ability to verify the debt, constituting a potential UDAAP violation. This obfuscation prevents transparency and exposes me to unjust financial harm. 
Action Required : US Bank must take corrective action by reopening my dispute and engaging in full compliance with UDAAP guidelines. This includes providing every detail of the deficiency balance, a copy of all documents related to repossession and sale proceeds, and confirmation that any amounts claimed adhere to fair and transparent standards. 
4. IRS Regulations on Form 1099-C Obligation to Issue Upon Determination of Debt Forgiveness or Abandonment of Collection IRS regulations mandate that creditors issue Form 1099-C when a debt of {$600.00} or more is canceled, forgiven, or deemed uncollectible. IRS Code 1.6050P-1 states that if a creditor has either abandoned collection efforts or reached a significant triggering event, issuance of Form 1099-C is required. Your response fails to clarify whether further collection is intended, and if so, on what basis, given the charged-off status of the account. 
Action Required : US Bank must confirm its intent to pursue or abandon further collection efforts. If no active collection is pursued, you are required by law to issue Form 1099-C for any balance deemed uncollectible, accurately reflecting the debt status with the IRS. If collection is ongoing, provide an updated summary of the collection efforts and an explanation of the legal grounds under which they are pursued. 
5. New Jersey Consumer Fraud Act ( CFA ) Compliance Obligation to Disclose Complete and Accurate Information Under N.J.S.A. 56:8-2, the New Jersey Consumer Fraud Act protects consumers from any act or omission that may mislead, deceive, or defraud. US Banks failure to disclose an itemized accounting of all post-repossession charges constitutes an omission that obscures the true nature of my financial obligations, which is in direct violation of New Jerseys CFA. I have the right to complete transparency regarding any balance that US Bank claims I owe. 
Action Required : I demand a detailed and transparent accounting of all amounts owed, consistent with New Jersey CFA requirements. This includes a line-by-line summary of every charge, fee, interest, and cost related to the repossession, sale, and deficiency. Failure to provide this may result in further action, as non-compliance with CFA subjects US Bank to penalties and additional regulatory scrutiny. 
Summary of Demands for Immediate Action To rectify these issues and ensure compliance with federal and state law, I demand that US Bank : 1. Recalculate and Itemize the Deficiency Balance : Full, transparent documentation, detailing each element of the deficiency balance. 
2. Issue Form 1099-C if Collection is Concluded : Confirm status of collection efforts ; if collection is deemed unfeasible or abandoned, issue a Form 1099-C to prevent improper tax liability. 
3. Update and Correct CRA Reporting as Needed : Delete all negative information and ensure reported to CRAs immediately. 
4. Review and Update Compliance Practices : Ensure that your consumer compliance systems meet FCRA, FDCPA, UDAAP , Dodd-Frank , and New Jersey CFA standards , avoiding similar issues for other consumers. 
If these demands are not met within 30 days of the date on this letter, I will have no alternative but to file formal complaints with the CFPB, the Federal Trade Commission ( FTC ), and New Jerseys Division of Consumer Affairs, and will seek further remedies available under applicable federal and state law. 
Your attention to these legal compliance issues is essential. I expect prompt action and a thorough, written response that affirms US Banks adherence to all cited consumer protection statutes. 
Sincerely, XXXX XXXX XXXX