Consumer complaint received 2024-02-21
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: NAVY FEDERAL CREDIT UNION (CA)

XX/XX/2024 Navy Federal Credit Union XXXX XXXX XXXX XXXX XXXX, VA XXXX Cc : XXXX XXXX XXXX Re : Tax Fraud. 1099-C request ignored. 
Account Number - XXXX XXXX To Whom It May Concern : I am writing to address a matter of significant concern regarding a recent communication regarding the status of a debt that has been charged off. On XX/XX/2024 I submitted a formal request for a copy of the 1099-C form associated with this debt ; however, to date, I have not received a response from your agency. 

Given the lack of response, I am compelled to express my concern regarding potential non-compliance with federal law. As stipulated by federal regulations, entities such as yours are required to file a 1099-C form for discharged debts exceeding {$600.00}. This is a mandatory requirement aimed at ensuring accurate reporting and compliance with tax obligations. 

It is essential to emphasize that according to the Internal Revenue Service ( IRS ), canceled debt is considered ordinary income! 

Because this charge off account is a canceled debt, the IRS states that, federal or government agencies or applicable financial entities ( a creditor ) who discharge ( cancels or forgives ) debts owed of {$600.00} or greater require that the creditor and the debtor submit a 1099-C form.

Consequently, the filing of a 1099XXXX form denotes a transformation of debt into income. This distinction is crucial, as income is not intended to be included on consumer reports and is not reported by consumer reporting agencies. Any failure to accurately report this information constitutes a violation of federal law and has significant repercussions for affected individuals. 

Pursuant to 15 USC 1681s-2 - Responsibilities of furnishers of information to consumer reporting agencies, THE LAW CLEARLY STATES : ( a ) Duty of furnishers of information to provide accurate information ( 1 ) Prohibition ( A ) Reporting information with actual knowledge of errors A personshall not furnish any information relating to a consumerto any consumer reporting agencyif theperson knows or has reasonable cause to believe that the information is inaccurate. 

The previous section imposes strict obligations on furnishers of information to consumer reporting agencies, prohibiting the dissemination of inaccurate information. Given the nature of this charged-off account as income, its inclusion on my consumer report is inaccurate and must be rectified promptly. 

Shall your agency continue to willfully ignore my rights, your CEO XXXX XXXX will be heldaccountable for this willful noncompliance, pursuant to 15 USC 1681n ( a ) ( 1 ) ( A ) which states : 15 U.S. Code 1681n - Civil liability for willful noncompliance ( a ) In general Any personwho willfully fails to comply with any requirement imposed under this subchapter with respect to any consumeris liable to that consumerin an amount equal to the sum of ( 1 ) ( A ) any actual damages sustained by the consumeras a result of the failure or damages of not less than {$100.00} and not more than {$1000.00} Your agency has 5 business days from within receipt of this notice to delete the incorrect information from my consumer report. Failure to address this matter in a timely manner may necessitate further action, including reporting to the IRS, XXXX, the state attorney and potential litigation. I trust that your agency will take immediate steps to ensure compliance with federal regulations and rectify the inaccurate reporting of this information. 

Thank you for your prompt attention to this matter. 

Best regards,