Consumer complaint received 2023-08-30
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: CarMax, Inc. (NY)

To the Consumer Financial Protection Bureau ( CFPB ), I am writing to file a formal complaint against CARMAX AUTO FINANCE and the consumer reporting agencies, XXXX and XXXX, for inaccurately furnishing information regarding my account, which has resulted in severe damage to my character, reputation, and way of life. This inaccurate reporting has also adversely affected my ability to obtain credit for personal and household needs. 

On my credit report, CARMAX AUTO FINANCE reports an account balance of {$5000.00} with a status of 'Derogatory ' and 'Charged-off '. This is perplexing because a charged-off account should not have an outstanding balance. Additionally, there is a discrepancy in the dates of the last payment reported by XXXX and XXXX. XXXX reports the last payment as XX/XX/XXXX, while XXXX reports it as XX/XX/XXXX. Furthermore, the last reported dates on XXXX and XXXX do not match, even after my report was updated. XXXX now shows XX/XX/XXXX, and XXXX shows XX/XX/XXXX. 

As per 15 U.S. Code 1681s2, furnishers of information are required to ensure the accuracy of the data they provide to consumer reporting agencies. It is unlawful to furnish information if the furnisher knows or has reason to believe that the information is incorrect. Once notified of inaccuracies by the consumer, the furnisher is prohibited from continuing to provide that erroneous data. 

The IRS guidelines clearly denote that a charge-off is classified as gross ordinary income, which is not reported on consumer reports. Therefore, portraying this account as a debt is fundamentally flawed and inaccurate. 

In the case of Adams v. Equifax Information Services, XXXX, XXXX was sued for inaccurately furnishing information to consumer reporting agencies. The plaintiffs alleged that XXXX violated the Fair Credit Reporting Act ( FCRA ) by failing to maintain reasonable procedures to ensure the accuracy of credit reports and failing to conduct proper investigations of disputed information. This case underscores the importance of accurate reporting and the legal responsibility that agencies have to ensure the veracity of their reports. By continuing to furnish inaccurate information, XXXX and XXXX are putting themselves at risk of similar legal consequences. 

In light of the above, I urge CARMAX AUTO FINANCE, XXXX, and XXXX to rectify the inaccuracies immediately and cease the furnishing of any further erroneous information. This negligence has caused substantial harm to my family and me. This letter serves as a final warning and an opportunity for the mentioned parties to address and correct these inaccuracies. 

I expect a detailed response within 30 days, outlining the corrective actions undertaken. If the current reporting is upheld, a thorough justification, referencing specific sections of the FCRA or other applicable statutes, is mandated. 

Your urgent attention to this pressing matter is anticipated. This letter has been cc'ed to the Consumer Financial Protection Bureau ( CFPB ) and the Attorney General. 

Sincerely, XXXX XXXX XXXX