Consumer complaint received 2024-07-06
Product: Vehicle loan or lease — Loan
Issue: Incorrect information on your report — Account status incorrect
Company: Global Lending Services LLC (MD)

Subject : XXXX XXXX Global Lending Services LLC for Violations of Fair Credit Reporting Act and IRS Reporting Requirements Dear Consumer Financial Protection Bureau, I am writing to file a formal complaint against Global Lending Services LLC concerning their handling of my auto loan account XXXX XXXXXXXX. I believe Global Lending Services LLC has engaged in multiple violations of the Fair Credit Reporting Act ( FCRA ) and IRS reporting requirements. Below, I outline the specific issues and statutes violated : Inaccurate Reporting to Credit Reporting Agencies : Global Lending Services LLC has violated 15 USC 1681s-2 ( a ) ( 1 ) ( A ), which states that a person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or consciously avoids knowing that the information is inaccurate. My account has been inaccurately reported as both a collection and a charge-off to XXXX, XXXX, and XXXX. These are two distinct statuses, and the reporting of my account in this manner is inaccurate and misleading.

Incorrect Reporting of Income on Consumer Reports : According to IRS Publication 4681, a charge-off is considered Gross or Ordinary Income and SHOULD NOT be reported on a consumer report. Global Lending Services LLC has inaccurately reported the charge-off status on my credit report, which is in violation of this IRS guideline XXXX 

Failure to Issue a 1099-C for Cancelled Debt : IRS Publication 4681 requires that a lender issue a 1099-C form for cancelled debt if the amount exceeds {$600.00}. The cancelled debt on my account amounts to {$22000.00}, yet I have never received a 1099-C form from Global Lending Services LLC . They are clearly writing off debt with the IRS which constitutes a shady practice and the omission of form 1099-C has resulted in inaccuracies in my personal tax filings, which may cause further complications and penalties for me. Unacceptable! 

Violation of Privacy Terms & Conditions : In their Privacy Terms & Conditions, Global Lending Services LLC agreed not to share my information with non-affiliates, with the exception of credit " bureaus. '' However, XXXX, XXXX, and XXXX are not true " bureaus '' but are consumer reporting agencies. The Privacy Act of 1974 does not adhere to semantics. The only true credit bureau recognized by federal law is the Consumer Financial Protection Bureau, which does not furnish consumer reports. Therefore, Global Lending Services LLCs sharing of my information with these agencies violates their own privacy terms and the Privacy Act of XXXX 

The practices of Global Lending Services LLC are not only unfair but also legally questionable. Their inaccurate reporting has adversely affected my credit score and financial standing, and their failure to issue the required 1099-C form has caused potential issues with my tax filings.I request that the Consumer Financial Protection Bureau investigate these violations and take appropriate action against Global Lending Services LLC XXXX I also seek rectification of the inaccuracies on my credit reports and issuance of the necessary 1099-C form.Thank you for your attention to this matter. I look forward to your prompt response and resolution of these issues.