Consumer complaint received 2024-01-08
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc. (TX)

Dear Consumer Financial Protection Bureau, I am writing to bring to your attention a pressing matter concerning persistent inaccuracies on my credit reports maintained by XXXX, XXXX, and Experian. Despite my explicit exercise of the right to opt-out of any and all authorizations, formally communicated to XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX, respectively, pursuant to 16 CFR 313.7 and 15 USC 6802, the mentioned accounts remain on my reports. 

Attached herewith are my most recent credit reports from all three bureaus, along with copies of the letters sent to each company, detailing my right to opt-out, and providing supporting documentation such as payment history details and dates from each bureau. Regrettably, despite my proactive measures, these companies persist on my credit reports, and XXXX, XXXX, and Experian have failed to uphold my consumer rights by reporting inaccurate details, including payment dates, history, status, and overlooking my right to opt-out. 

I must highlight that, during extensive conversations with an IRS representative, I was informed that any account with a charge-off status is considered inaccurate. The IRS views charge-offs as income, as detailed in Publication 4681 ( 2022 ), Canceled Debts, Foreclosures, Repossessions, and Abandonments. This misinformation has not only impacted my financial standing but has also taken a toll on me emotionally, mentally, and physically. 

As a XXXX father, the damage caused by these inaccuracies is substantial. Therefore, I am formally requesting the immediate removal of the accounts mentioned above from my credit reports, in accordance with the Fair Credit Reporting Act ( FCRA ). Furthermore, I am seeking compensation for the damages incurred as a result of the inaccuracies reported by the credit bureaus. 

I kindly urge the Consumer Financial Protection Bureau to initiate a thorough investigation into this matter and facilitate the prompt removal of the inaccurate accounts, along with appropriate compensation. Your prompt attention to this serious issue is appreciated, and I expect a resolution that aligns with consumer protection laws. 


The applicable legal provisions are delineated in 16 CFR 313.7, 15 USC 6802, and Publication 4681 ( 2022 ), covering matters such as opt-out rights, consumer privacy, and guidelines on canceled debts, foreclosures, repossessions, and abandonments. Additionally, 15 U.S. Code 1681n establishes civil liability for willful noncompliance with credit reporting laws. It is imperative to emphasize that ignorance of the law does not serve as a valid excuse. 

In the event that these issues are not promptly addressed, I will be compelled to escalate the matter to federal court. I would like to bring to your attention that a prior complaint was submitted to the Consumer Financial Protection Bureau ( CFPB ), but regrettably, no corrective actions were taken by the credit reporting agencies. Immediate resolution is sought to rectify the persistent inaccuracies on my credit reports in alignment with the aforementioned legal provisions. 

Enclosed, please find all pertinent documentation to support my complaint. If further information is required, please feel free to contact me at ( XXXX ) XXXXXXXX XXXX XXXXXXXX Thank you for your immediate attention and assistance in resolving this matter immediately. SEE Below 16 CFR 313.7 - Form of opt out notice to consumers ; opt out 313.7 Form of opt out notice to consumers ; opt out methods. 
( a ) ( 1 ) Form of opt out notice. If you are required to provide an opt out notice under 313.10 ( a ), you must provide a clear and conspicuous notice to each of your consumers that accurately explains the right to opt out under that section. The notice must state : ( i ) That you disclose or reserve the right to disclose nonpublic personal information about your consumer to a nonaffiliated third party ; ( ii ) That the consumer has the right to opt out of that disclosure; and ( iii ) A reasonable means by which the consumer may exercise the opt out right. 

( 2 ) Examples ( i ) Adequate opt out notice. You provide adequate notice that the consumer can opt out of the disclosure of nonpublic personal information to a nonaffiliated third party if you : ( A ) Identify all of the categories of nonpublic personal information that you disclose or reserve the right to disclose, and all of the categories of nonaffiliated third parties to which you disclose the information, as described in 313.6 ( a ) ( 2 ) and ( 3 ) and state that the consumer can opt out of the disclosure of that information; and ( B ) Identify the financial products or services that the consumer obtains from you, either singly or jointly, to which the opt out direction would apply.

( ii ) Reasonable opt out means. You provide a reasonable means to exercise an opt out right if you : ( A ) Designate check-off boxes in a prominent position on the relevant forms with the opt out notice ; ( B ) Include a reply form that includes the address to which the form should be mailed ; or ( C ) Provide an electronic means to opt out, such as a form that can be sent via electronic mail or a process at your web site, if the consumer agrees to the electronic delivery of information ; or ( D ) Provide a toll-free telephone number that consumers may call to opt out. 

( iii ) Unreasonable opt out means. You do not provide a reasonable means of opting out if : ( A ) The only means of opting out is for the consumer to write his or her own letter to exercise that opt out right; or ( B ) The only means of opting out as described in any notice subsequent to the initial notice is to use a check-off box that you provided with the initial notice but did not include with the subsequent notice. 

( iv ) Specific opt out means. You may require each consumer to opt out through a specific means, as long as that means is reasonable for that consumer. 

( b ) Same form as initial notice permitted. You may provide the opt out notice together with or on the same written or electronic form as the initial notice you provide in accordance with 313.4. 

( c ) Initial notice required when opt out notice delivered subsequent to initial notice. If you provide the opt out notice later than required for the initial notice in accordance with 313.4, you must also include a copy of the initial notice with the opt out notice in writing or, if the consumer agrees, electronically. 

( d ) Joint relationships. 

( 1 ) If two or more consumers jointly obtain a financial product or service from you, you may provide a single opt out notice, unless one or more of those consumers requests a separate opt out notice. Your opt out notice must explain how you will treat an opt out direction by a joint consumer ( as explained in paragraph ( d ) ( 5 ) ( ii ) of this section ). 

( 2 ) Any of the joint consumers may exercise the right to opt out. You may either : ( i ) Treat an opt out direction by a joint consumer as applying to all of the associated joint consumers; or ( ii ) Permit each joint consumer to opt out separately. 

( 3 ) If you permit each joint consumer to opt out separately, you must permit one of the joint consumers to opt out on behalf of all of the joint consumers. 

( 4 ) You may not require all joint consumers to opt out before you implement any opt out direction. 

( XXXX ) Example. If XXXX and XXXX have a joint credit card account with you and arrange for you to send statements to XXXX 's address, you may do any of the following, but you must explain in your opt out notice which opt out policy you will follow : ( i ) Send a single opt out notice to XXXX 's address, but you must accept an opt out direction from either XXXX or XXXX. 

( ii ) Treat an opt out direction by either XXXX or XXXX as applying to the entire account. If you do so, and XXXX opts out, you may not require XXXX to opt out as well before implementing XXXX 's opt out direction. 

( iii ) Permit XXXX and XXXX to make different opt out directions. If you do so, ( A ) You must permit XXXX and XXXX to opt out for each other; ( B ) If both opt out, you must permit both to notify you in a single response ( such as on a form or through a telephone call ) ; and ( C ) If XXXX opts out and XXXX does not, you may only disclose nonpublic personal information about XXXX, but not about XXXX and not about XXXX and XXXX jointly. 

( e ) Time to comply with opt out. You must comply with a consumer 's opt out direction as soon as reasonably practicable after you receive it. 

( f ) Continuing right to opt out. A consumer may exercise the right to opt out at any time. 

( g ) Duration of consumer 's opt out direction. 

( 1 ) A consumer 's direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically. 

( 2 ) When a customer relationship terminates, the customer 's opt out direction continues to apply to the nonpublic personal information that you collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with you, the opt out direction that applied to the former relationship does not apply to the new relationship. 

( h ) Delivery. When you are required to deliver an opt out notice by this section, you must deliver it according to 313.9. 

( i ) Model privacy form. Pursuant to 313.2 ( a ) of this part, a model privacy form that meets the notice content requirements of this section is included in appendix A of this part. 




15 U.S. Code 6802 - Obligations with respect to disclosures of personal information ( a ) Notice requirements Except as otherwise provided in this subchapter, a financial institution may not, directly or through any affiliate, disclose to a nonaffiliated third party any nonpublic personal information, unless such financial institution provides or has provided to the consumer a notice that complies with section 6803 of this title. 

( b ) Opt out ( 1 ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option. 
( 2 ) Exception This subsection shall not prevent a financial institution from providing nonpublic personal information to a nonaffiliated third party to perform services for or functions on behalf of the financial institution, including marketing of the financial institutions own products or services, or financial products or services offered pursuant to joint agreements between two or more financial institutions that comply with the requirements imposed by the regulations prescribed under section 6804 of this title, if the financial institution fully discloses the providing of such information and enters into a contractual agreement with the third party that requires the third party to maintain the confidentiality of such information. 

( c ) Limits on reuse of information Except as otherwise provided in this subchapter, a nonaffiliated third party that receives from a financial institution nonpublic personal information under this section shall not, directly or through an affiliate of such receiving third party, disclose such information to any other person that is a nonaffiliated third party of both the financial institution and such receiving third party, unless such disclosure would be lawful if made directly to such other person by the financial institution. 

( d ) Limitations on the sharing of account number information for marketing purposes A financial institution shall not disclose, other than to a consumer reporting agency, an account number or similar form of access number or access code for a credit card account, deposit account, or transaction account of a consumer to any nonaffiliated third party for use in telemarketing, direct mail marketing, or other marketing through electronic mail to the consumer. 

( e ) General exceptions Subsections ( a ) and ( b ) shall not prohibit the disclosure of nonpublic personal information ( 1 ) as necessary to effect, administer, or enforce a transaction requested or authorized by the consumer, or in connection with ( A ) servicing or processing a financial product or service requested or authorized by the consumer ; ( B ) maintaining or servicing the consumers account with the financial institution, or with another entity as part of a private label credit card program or other extension of credit on behalf of such entity ; or ( C ) a proposed or actual securitization, secondary market sale ( including sales of servicing rights ), or similar transaction related to a transaction of the consumer ; ( 2 ) with the consent or at the direction of the consumer ; ( 3 ) ( A ) to protect the confidentiality or security of the financial institutions records pertaining to the consumer, the service or product, or the transaction therein ; ( B ) to protect against or prevent actual or potential fraud, unauthorized transactions, claims, or other liability ; ( C ) for required institutional risk control, or for resolving customer disputes or inquiries ; ( D ) to persons holding a legal or beneficial interest relating to the consumer ; or ( E ) to persons acting in a fiduciary or representative capacity on behalf of the consumer ; ( 4 ) to provide information to insurance rate advisory organizations, guaranty funds or agencies, applicable rating agencies of the financial institution, persons assessing the institutions compliance with industry standards, and the institutions attorneys, accountants, and auditors ; ( 5 ) to the extent specifically permitted or required under other provisions of law and in accordance with the Right to Financial Privacy Act of 1978 [ 12 U.S.C. 3401 et seq. ], to law enforcement agencies ( including the Bureau of Consumer Financial Protection [ 1 ] a Federal functional regulator, the Secretary of the Treasury with respect to subchapter II of chapter 53 of title 31, and chapter 2 of title I of Public Law 91508 ( 12 U.S.C. 19511959 ), a State insurance authority, or the Federal Trade Commission ), self-regulatory organizations, or for an investigation on a matter related to public safety ; ( 6 ) ( A ) to a consumer reporting agency in accordance with the Fair Credit Reporting Act [ 15 U.S.C. 1681 et seq. ], or ( B ) from a consumer report reported by a consumer reporting agency ; ( 7 ) in connection with a proposed or actual sale, merger, transfer, or exchange of all or a portion of a business or operating unit if the disclosure of nonpublic personal information concerns solely consumers of such business or unit; or ( 8 ) to comply with Federal, State, or local laws, rules, and other applicable legal requirements ; to comply with a properly authorized civil, criminal, or regulatory investigation or subpoena or summons by Federal, State, or local authorities ; or to respond to judicial process or government regulatory authorities having jurisdiction over the financial institution for examination, compliance, or other purposes as authorized by law. 



Publication 4681 ( 2022 ), Canceled Debts, Foreclosures, Repossessions, and Abandonments 1. Canceled Debts This chapter discusses the tax treatment of canceled debts.

General Rules Generally, if a debt for which you are personally liable is forgiven or discharged for less than the full amount owed, the debt is considered canceled in whatever amount it remained unpaid. There are exceptions to this rule, discussed under Exceptions, later. Generally, you must include the canceled debt in your income. However, you may be able to exclude the canceled debt. See Exclusions, later. 

Example. XXXX owed {$1000.00} to XXXX. XXXX agreed to accept and XXXX paid {$400.00} in satisfaction of the entire debt. XXXX has canceled debt of {$600.00}. 
Example. XXXX owed {$1000.00} to XXXX. XXXX and XXXX agreed that XXXX would provide XXXX with services ( instead of money ) in full satisfaction of the debt. XXXX doesnt have canceled debt. Instead, XXXX has income from services. 
A debt includes any indebtedness : For which you are liable, or Subject to which you hold property. 
Debt for which you are personally liable is recourse debt. All other debt is nonrecourse debt. 
If you aren't personally liable for the debt, you don't have ordinary income from the cancellation of debt unless you retain the collateral and either : The lender offers a discount for the early payment of the debt, or The lender agrees to a loan modification that results in the reduction of the principal balance of the debt. 
See Discounts and Loan Modifications, later. 
However, upon the disposition of the property securing a nonrecourse debt, the amount realized includes the entire unpaid amount of the debt, not just the XXXX of the property. As a result, you may realize a gain or loss if the outstanding debt immediately before the disposition is more or less than your adjusted basis in the property. For more details on figuring your gain or loss, see chapter 2 of this publication or see Pub. 544. 

There are several exceptions and exclusions that may result in part or all of a canceled debt being nontaxable. See Exceptions and Exclusions, later. You must report any taxable canceled debt as ordinary income on : Schedule 1 ( Form 1040 ), line 8c, if the debt is a nonbusiness debt ; Schedule C ( Form 1040 ), line 6, if the debt is related to a nonfarm sole proprietorship ; Schedule E ( Form 1040 ), line 3, if the debt is related to nonfarm rental of real property ; Form 4835, line 6, if the debt is related to a farm rental activity for which you use Form 4835 to report farm rental income based on crops or livestock produced by a tenant ; or Schedule F ( Form 1040 ), line 8, if the debt is farm debt and you are a farmer. 
Form 1099-C If you receive a Form 1099-C, that means an applicable entity has reported an identifiable event to the IRS regarding a debt you owe. For information on the reasons an applicable entity files Form 1099-C, see Identifiable event codes, later. Unless you meet one of the exceptions or exclusions discussed later, this canceled debt is ordinary income and must be reported on the appropriate form discussed above. 

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This is an Image : XXXX you had a XXXX  loan that was discharged after XX/XX/XXXX, and the amount of the discharged loan is nontaxable, you wont receive a Form 1099-C from the lender or servicer of your XXXX  loan. 
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An applicable entity includes the following. 
A financial institution. 
A credit union. 
Any of the following, its successor, or subunit of one of the following. 
The Federal Deposit Insurance Corporation ( FDIC ).

The Resolution Trust Corporation ( RTC ).

The National Credit Union Administration ( NCUA ). 
Any other federal executive agency, including government corporations, any military department, the U.S. Postal Service, or the Postal Rate Commission. 
A corporate subsidiary of a financial institution or credit union ( if the affiliation subjects the subsidiary to federal or state regulation ). 
A federal government agency, including a department, an agency, a court or court administrative office, or a judicial or legislative instrumentality. 
Any organization of which lending money is a significant trade or business. 
For more information on the applicable entities that must file a Form 1099-C, see the 2022 Instructions for Forms 1099-A and 1099-C, available at IRS.gov/pub/irs-prior/i1099ac -- 2022.pdf. 
Identifiable event codes. Box 6 of Form 1099-C should indicate the reason the creditor filed this form. The codes shown in box XXXX are explained next. Also, see the chart after the explanation for a quick reference guide for the codes used in box 6. 
Code AXXXX. Code A is used to identify cancellation of debt as a result of a XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

Code BOther judicial debt relief. Code B is used to identify cancellation of debt as a result of a receivership, foreclosure, or similar federal or state court proceeding other than XXXX. 

Code CStatute of limitations or expiration of deficiency period. Code C is used to identify cancellation of debt either when the statute of limitations for collecting the debt expires or when the statutory period for filing a claim or beginning a deficiency judgment proceeding expires. In the case of the expiration of a statute of limitations, an identifiable event occurs only if and when your affirmative defense of the statute of limitations is upheld in a final judgment or decision in a judicial proceeding, and the period for appealing the judgment or decision has expired. 

Code DForeclosure election. Code D is used to identify cancellation of debt when the creditor elects foreclosure remedies that statutorily end or bar the creditor 's right to pursue collection of the debt. This event applies to a mortgage lender or holder who is barred from pursuing debt collection after a power of sale in the mortgage or deed of trust is exercised. 

Code EDebt relief from probate or similar proceeding. Code E is used to identify cancellation of debt as a result of a probate court or similar legal proceeding. 

Code FBy agreement. Code F is used to identify cancellation of debt as a result of an agreement between the creditor and the debtor to cancel the debt at less than full consideration.

Code GDecision or policy to discontinue collection. Code G is used to identify cancellation of debt as a result of a decision or a defined policy of the creditor to discontinue collection activity and cancel the debt. For purposes of this identifiable event, a defined policy includes both a written policy and the creditor 's established business practice. 

Code HOther actual discharge before identifiable event. Code H is used to identify an actual cancellation of debt that occurs before any of the identifiable events described in codes A through G 15 U.S. Code 1681n - Civil liability for willful noncompliance ( a ) In general Any person who willfully fails to comply with any requirement imposed under this subchapter with respect to any consumer is liable to that consumer in an amount equal to the sum of ( 1 ) ( A ) any actual damages sustained by the consumer as a result of the failure or damages of not less than {$100.00} and not more than {$1000.00} ; or ( B ) in the case of liability of a natural person for obtaining a consumer report under false pretenses or knowingly without a permissible purpose, actual damages sustained by the consumer as a result of the failure or {$1000.00}, whichever is greater ; ( 2 ) such amount of punitive damages as the court may allow ; and ( 3 ) in the case of any successful action to enforce any liability under this section, the costs of the action together with reasonable attorneys fees as determined by the court. 
( b ) Civil liability for knowing noncompliance Any person who obtains a consumer report from a consumer reporting agency under false pretenses or knowingly without a permissible purpose shall be liable to the consumer reporting agency for actual damages sustained by the consumer reporting agency or {$1000.00}, whichever is greater. 

( c ) Attorneys fees Upon a finding by the court that an unsuccessful pleading, motion, or other paper filed in connection with an action under this section was filed in bad faith or for purposes of harassment, the court shall award to the prevailing party attorneys fees reasonable in relation to the work expended in responding to the pleading, motion, or other paper. 

( d ) Clarification of willful noncompliance For the purposes of this section, any person who printed an expiration date on any receipt provided to a consumer cardholder at a point of sale or transaction between XX/XX/XXXX, and XX/XX/XXXX, but otherwise complied with the requirements of section 1681c ( g ) of this title for such receipt shall not be in willful noncompliance with section 1681c ( g ) of this title by reason of printing such expiration date on the receipt.