Consumer complaint received 2025-09-03 00:00:00
Product: Debt collection — I do not know
Issue: Written notification about debt — Didn't receive enough information to verify debt
Company: Self Financial Inc.
State: NC

Complaint narrative:
I am filing a formal complaint against Lead Bank for knowingly and willfully furnishing false, misleading, and contradictory information about a closed installment loan account, originally opened on XX/XX/XXXX, in the amount of {$530.00}, and reported as closed with a {$0.00} balance as of XX/XX/XXXX. 

Despite this account being fully satisfied and closed, Lead Bank continues to furnish derogatory data to consumer reporting agencies most notably, reporting 60-day late payments in XX/XX/XXXX and XX/XX/XXXX. 

The reporting of a XX/XX/XXXX late payment is factually impossible, given that the accounts last payment date is listed as XX/XX/XXXX. This discrepancy is not a minor oversight it is a direct violation of federal law, an act of unlawful re-aging, and an egregious abuse of the credit reporting system. 

Lead Banks conduct represents a systemic pattern of noncompliance with the Fair Credit Reporting Act ( FCRA ) and the duties imposed on furnishers under 15 U.S.C. 1681s-2 ( b ). 



What Happened Detailed Facts XXXX. Account Closed, Yet Still Punished with Derogatory Marks The account in question was closed in XX/XX/XXXX with a XXXX balance. 
Once closed and satisfied, it should not continue to harm the consumer with false delinquencies. 
Yet Lead Bank has intentionally left 60-day late notations in the consumers file, extending derogatory damage far beyond what is legally permitted. 
XXXX. Contradictory Reporting Pays as Agreed vs. Late Payments The account is simultaneously marked as Pays account as agreed while also showing repeated late payments. 
These two designations can not coexist they are contradictory and misleading.

If an account is truly pays as agreed, no late payments should be reported. 
XXXX. Unlawful Re-Aging of Delinquency The most alarming misconduct is the reporting of a XXXX late payment in XX/XX/XXXX despite the fact that the last payment date was XX/XX/XXXX. 
It is logically impossible for a consumer to be delinquent in XX/XX/XXXX on an account that had no payments due after XX/XX/XXXX. 
This false data amounts to illegal re-aging, a prohibited practice where furnishers artificially extend the derogatory reporting life of an account. 
XXXX. Failure to Investigate & Correct Errors Under FCRA 1681s-2 ( b ), once a furnisher is notified of a dispute, it must : Conduct a reasonable investigation, Review all relevant information, Correct inaccuracies, and Report results back to the consumer reporting agency.

Lead Bank failed to meet these obligations. Instead of investigating, they doubled down on false reporting.

5. Systemic Abuse of the Credit Reporting System This is not a clerical mistake it is evidence of a systemic practice designed to keep negative data on consumer files longer than legally permitted.

Such behavior not only harms the consumer but undermines the integrity of the credit reporting system as a whole.

Violations of Federal Law 1. FCRA 1681s-2 ( b ) Furnisher Duties Lead Bank failed XXXX reasonably investigate disputes. 
They failed to delete unverifiable information. 
They furnished contradictory, inaccurate, and outdated data. 
XXXX. FCRA 623 ( a ) ( 1 ) Accuracy in Furnishing Furnishers may not provide information to CRAs that they know ( or should know ) is inaccurate. 
Reporting a XX/XX/XXXX delinquency on a closed account is knowingly false. 
XXXX. FCRA 623 ( a ) ( 2 ) Duty to Update and Correct Furnishers must update and correct information to ensure it is complete and accurate. 
Lead Bank failed to update the account properly upon closure and satisfaction. 
XXXX. FCRA 623 ( a ) ( 5 ) Re-Aging Prohibition Furnishers can not reset the date of first delinquency to extend the derogatory impact. 
Reporting a XXXX delinquency on a XXXXclosed account is re-aging in direct violation of this statute. 
XXXX. Deceptive Practices By labeling the account pays as agreed while reporting late marks, Lead Bank engaged in deceptive furnishing.

Harm Caused Lead Banks misconduct is not harmless. It directly causes : Lower credit scores, reducing access to fair credit opportunities.

Misrepresentation of the consumers financial reliability to lenders, landlords, and employers.

Prolonged derogatory impact from a paid, closed account. 
Emotional distress, reputational harm, and ongoing financial injury.

Company response to consumer: Closed with explanation