Consumer complaint received 2024-06-22
Product: Payday loan, title loan, personal loan, or advance loan — Personal line of credit
Issue: Incorrect information on your report — Account status incorrect
Company: MARINER FINANCE, LLC (IN)

XXXX XXXX XXXX XXXX XXXX XXXX, IN XXXX XX/XX/XXXX Mariner Finance XXXX XXXX XXXX XXXX XXXX, MD XXXX USA RE : Inaccurate Reporting, Tax Violation, and Legal Notice for Account No. XXXX XXXX XXXX NOTICE TO AGENT IS NOTICE TO PRINCIPAL, NOTICE TO PRINCIPAL IS NOTICE TO AGENT To Whom It May Concern, This letter serves as a formal and urgent notice regarding the inaccurate reporting of my account, referenced above, to the consumer reporting agencies. Your failure to comply with federal law has severely damaged my credit profile, reputation, and financial standing. 

On XX/XX/XXXX, I applied for and received a loan from Mariner Finance. Your recent correspondence, dated XX/XX/XXXX, asserts that the information you furnished to the credit reporting agencies is accurate and that a 1099-C form will not be issued because the debt remains collectible. This response is inadequate and fails to address the legal requirements under federal law.

Violations Under Federal Law : Fair Credit Reporting Act ( FCRA ), 15 U.S. Code 1681s-2 ( a ) Duty of Furnishers of Information to Provide Accurate Information ( 1 ) Prohibition : ( A ) Reporting Information with Actual Knowledge of Errors : You are prohibited from furnishing any information relating to a consumer to any consumer reporting agency if you know or have reasonable cause to believe that the information is inaccurate.

Your report of this account as a charge-off or write-off for profit and loss purposes is factually incorrect and legally indefensible. According to the Internal Revenue Code ( IRC ) and IRS guidelines, a charge-off, once it is deemed uncollectible, should be treated as canceled debt and reported as gross income.

IRS Guidelines : Internal Revenue Code ( IRC ) : Section 61 : Defines gross income to include all income from whatever source derived, including canceled debts.

Section 108 : Deals with the exclusions applicable to cancellation of debt ( COD ) income.

IRS Publications : Publication 4681 : Details the tax implications of canceled debts, foreclosures, repossessions, and abandonments.

Publication 525 : Outlines what constitutes taxable and nontaxable income, including canceled debts.

The IRS mandates that a canceled debt must be reported as gross income. If the canceled debt exceeds {$600.00}, you are required to issue Form 1099-C to both the IRS and the debtor. Failure to do so not only violates IRS regulations but also results in the furnishing of inaccurate information to the credit reporting agencies.

Tax Violation and Fraudulent Reporting to XXXX : I have also discovered that the status of a charge-off or write-off has been inaccurately reported to XXXX, which is a violation of tax laws and constitutes fraudulent reporting. This misrepresentation has significant legal implications and further damages my financial standing and reputation.

Demand for Immediate Action : You are hereby demanded to : 1. Cease and Desist : Immediately cease reporting the account as a charge-off or write-off to XXXX. 
2. Correction : Correct the reporting to accurately reflect the status of the account as canceled debt, and issue Form 1099-C as required by law.

3. Delete the Account : Delete the account from all consumer reporting agencies within ten ( 10 ) business days, including XXXX. 
4. Provide Evidence : Furnish all documentation and evidence used in your investigation to verify the accuracy of the reported information to XXXX. 

Failure to comply with these demands within ten ( 10 ) business days from the date of this letter will result in legal action to enforce my rights under the Fair Credit Reporting Act, the Consumer Credit Protection Act, and other applicable federal laws. This may include filing complaints with the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), and taking legal action for damages caused by your negligent and unlawful reporting.

Furthermore, I will be filing an IRS Form 3949 tax violation due to the inaccurate reporting of this account.

This is your final notice to correct this grievous error. Continued non-compliance will be met with legal action to the fullest extent permitted by law. 

Sincerely, XXXX XXXX Enclosures : Copy of Drivers License Copy of Utility Bill Copy of Previous Correspondence