Consumer complaint received 2025-06-22 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: PENTAGON FEDERAL CREDIT UNION
State: PA

Complaint narrative:
Consumer Financial Protection Bureau XXXX. XXXX XXXX XXXX  XXXX DC XXXX Date : XX/XX/XXXX Subject : Formal Complaint Ongoing Inaccurate Reporting of Charged-Off and Sold Credit Card by Pentagon Federal Credit Union To Whom It May Concern, This letter is a formal complaint regarding Pentagon Federal Credit Union ( PenFed ) and their unlawful, continued reporting of a charged-off and sold revolving credit account across all three major credit bureaus ( TransUnion, Experian, Equifax ) , even though it has been marked as sold to a third-party entity ( SCS ) and carries a {$0.00} balance.

This behavior constitutes intentional and willful noncompliance with the Fair Credit Reporting Act ( FCRA ) and Internal Revenue Service ( IRS ) regulations under 26 U.S. Code 6050P.

Account Summary : Creditor : Pentagon Federal Credit Union ( PenFed ) Account Type : Revolving / Credit Card Account Opened : XX/XX/XXXX High Credit : {$7200.00} Credit Limit : {$6000.00} Balance : {$0.00} Status : Derogatory Collection/Charge-Off Last Reported : TransUnion ( XX/XX/XXXX ), Experian ( XX/XX/XXXX ), Equifax ( XX/XX/XXXX ) XXXX : Charged off as bad debt, Purchased by another lender, Sold to : SCS Violations of Federal Law : Despite this account being sold to a third party and carrying a {$0.00} balance, PenFed continues to furnish derogatory data on this account under their name, in violation of : FCRA 1681e ( b ) : Failure to ensure maximum possible accuracy in consumer reporting FCRA 1681i : Failure to conduct proper reinvestigation and delete disputed, unverifiable information FCRA 1681s-2 ( b ) : Furnishers must not report information that is disputed and can not be verified 26 U.S. Code 6050P ( IRS ) : Creditors must issue a 1099-C for canceled debt over {$600.00} and PenFed has failed to provide one The presence of this inaccurate, derogatory, and misleading account has no legal standing to remain on my credit report. The debt has been charged off, sold, and should no longer be reported by the original creditor ( PenFed ). Any continued reporting is punitive, deceptive, and unlawful.

Damages Suffered : The ongoing false reporting of this account has resulted in : Psychological harm, including stress, anxiety, and emotional fatigue Credit harm, making it impossible to secure a mortgage and forcing me to delay major life decisions Financial loss, due to expenses incurred in mailing disputes, hiring credit consultants, and disputing information that should have been corrected long ago Violation of my federally protected rights, despite repeated efforts to notify both the furnisher and the credit reporting agencies Formal Request for Regulatory Action : I am requesting that the CF
PB : Open an immediate investigation into Pentagon FCUs repeated violations of federal credit reporting laws Require the permanent deletion of this credit card account from my credit file, under PenFeds name Determine whether a 1099-C form was issued by PenFed and hold them accountable if it was not Enforce penalties for furnishing false, derogatory information to consumer reporting agencies Ensure I receive an updated credit report with the account removed entirely from all credit bureaus This type of behavior not only violates federal statutes but perpetuates credit system abuse that financially harms consumers like me who are simply trying to move forward. Please process this complaint with urgency and notify me of all actions taken. 

Sincerely, XXXX XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation