Consumer complaint received 2024-07-23
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Bread Financial Holdings, Inc. (GA)

I am filing this formal complaint with the understanding that knowingly making false statements or omitting material facts constitutes a federal criminal violation punishable under 18 U.S.C. 1001 and as perjury under 18 U.S.C. 1621. 

This complaint is against XXXX XXXX XXXX and XXXX XXXX for violating my rights under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 ( c ), and other applicable laws. Under the Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681 ), I have the right to sue XXXX, XXXX, XXXX, and XXXX for negligence and willful noncompliance. 

I dispute any alleged claims reported as consumer debt on my credit report. Sections 616 and 617 of the FCRA outline the civil liabilities for willful and negligent noncompliance, respectively. XXXX XXXX XXXX and XXXX XXXX XXXX along with XXXX, XXXX, XXXX, and XXXX, have willfully failed to comply with federal regulations by misusing my consumer report regarding account number XXXX. This account was paid as agreed in XXXX. They closed the account, removed it from my credit report, and then reopened it without my knowledge, falsely claiming I owe them money. 

The debt collector, XXXX XXXX XXXX, obtained my information without my consent and opened an account in my name. According to 12 CFR 1022.3, identity theft is defined as fraud committed or attempted using the identifying information of another person without authority. Any addition to your report without your written consent could be considered identity theft. Under 15 U.S. Code 1681c-2, blocking information resulting from identity theft is required, and I reported this to the CFPB in complaints I filed in XXXX

Furthermore, 15 U.S. Code 1681e outlines compliance procedures that every consumer reporting agency must follow to avoid violations and limit the furnishing of consumer reports to the purposes listed under section 1681b. These procedures require verifying the identity and purpose of credit users.

Violations of section 1681b for permissible purpose and section 1681c for information contained in consumer reports also violate compliance procedures under this title. 15 U.S. Code 1681n provides for civil liability for willful noncompliance, allowing consumers to recover actual damages or statutory damages between {$100.00} and {$1000.00}, or {$1000.00} for obtaining a consumer report under false pretenses.

15 U.S. Code 1681o provides for civil liability for negligent noncompliance, meaning the law was violated not on purpose but due to a lack of knowledge on required reporting procedures. Under 15 U.S. Code 1681s-2, furnishers of information to consumer reporting agencies are prohibited from reporting information with actual knowledge of errors or after notice and confirmation of errors. They must ensure the accuracy of the information they provide. 

IRS Publication 4681, Chapter 1 regarding canceled debts states that a canceled debt is considered ordinary income, which is taxable. This charge -off is taxable income and not to be included on a consumer report. 15 U.S. Code 1681s-2 states A person shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.

The Privacy Act of 1974 ( 5 U.S. Code 552a ) defines a " record '' and restricts the disclosure of such records without the written consent of the individual to whom the record pertains, except under specific conditions. This includes obtaining satisfactory assurances from consumer reporting agencies that they comply with all U.S. laws related to providing consumer credit information. By failing to comply with these regulations, XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XXXX, XXXX, and XXXX have XXXX both the Fair Credit Reporting Act and the Privacy Act of XXXX.