Consumer complaint received 2024-01-21
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Experian Information Solutions Inc. (ME)

With the debtor / creditor relationship to the businesses and relationship with the specific credit reporting agencies listed below following the accounts reported with each agency : EXPERIAN : XXXX XXXX XXXX XXXX : {$27000.00} opened XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX : {$11000.00} opened XX/XX/XXXXXXXX XXXX XXXX XXXX Amount : {$2600.00} opened XX/XX/XXXX XXXX : XXXX XXXX XXXX XXXX XXXX {$27000.00} opened XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$11000.00} opened XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$4300.00} opened XX/XX/XXXXXXXX XXXX Amount : {$2600.00} opened XX/XX/XXXX XXXX : XXXX XXXX XXXX Amount XXXX {$27000.00} XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$11000.00} XXXX XX/XX/XXXX XXXX XXXX XXXX XXXX XXXX XXXX {$4300.00} XXXX XX/XX/XXXXXXXX XXXX Amount : {$2600.00} opened XX/XX/XXXX Each of the debts reported above with the particular credit reporting agencies were all reported as charged-off/written-off 180 days after last " reported payments ''. With that being said The Fair Credit Reporting Act mandates accurate reporting though out the life of a debt, the FCRA requires creditors to report information that is as accurate as possible based on the information reasonably available. Sections 1681 ( b ) of the FCRA states that information must be as accurate as possible, This encompasses any changes in the debt status, including write-offs, adjustments, or offsets. When a Creditor receives a benefit, like a tax deduction, from writing off a debt, it creates an offset that necessitates adjusting reported debt amounts for accuracy. This generally involves informing the borrower and correcting the credit report and/or file to reflect the updated status. Pursuant to IRS publication 453, bad debt deductions. It states bad business debts are deductible on schedule C ( form 1040 ). This would mean that the business writing off an account as a bad business debt would result in said business receiving a benefit. That benefit would be considered an offset to that relatable debt. The list of examples of bad business debts are loans to clients, suppliers, distributors, and employees, credit sales to customers or Business loan guarantees. As I am aware that businesses are not required to inform borrowers that their debt has been written off/charged off, It is important to ensure that fair measures are actively being used to report accuracy of information on credit reports/files pursuant to the Fair Credit Reporting Act. To add to this, Every debt is in fact associated with contracts, this incorporates contract law into the matter. Contract law requires parties to operate in good faith, clean hands, and to communicate with one another. In fact, the most basic fundamental principles of contract law is the parties have a duty to communicate with one another. Now adding into consideration that when a business has received a benefit from writing off a debt, the business can not under the law of the fair credit reporting act, allow the original report to remain unchanged. The benefit operates as an offset and or set off, whether its called a charge-off or write off, it stills operate as a benefit offsetting the negative because the benefit operates as a positive. Since most businesses use accrual method of accounting the offset is mandatory as result of the businesses reporting practices. Failing to report the adjustment of the account resulting from the benefit received means that you are inaccurately reporting, resulting said account ( s ) not being accurately verified, and validated, and the law requires accurate reporting of accounts being validated, verified and accurate in regard to reporting debts, and creditors must do so for the duration of the reporting of the debt. The federal law requires those 3 issues to be addressed by every single creditor. As a result of this information, I am demanding the Creditors show the adjustment of all charge-off/written off accounts to reflect the balance change.

One case citation relatable to this complaint is Johnson v. MBNA American Bank, N.A., 357 F.3d 426 ( 4th Cir. 2004 ) : This case found that a creditor violated FCRA by failing to update a consumers credit report to reflect that a debt had been discharged in bankruptcy. The court emphasized the duty to report accurate information throughout the reporting period.