Consumer complaint received 2024-11-13 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: UPGRADE, INC.
State: NY

Complaint narrative:
I am filing a complaint against UPGRADE for inaccurate credit reporting, violations of the Fair Credit Reporting Act ( FCRA ), and fraudulent practices that have caused me statutory damages. 
My credit report shows an account with UPGRADE as " charged off ''. {$7800.00} However, I have not received a Form 1099-C from the creditor, which is required by the IRS when a debt is forgiven or canceled. This inconsistency raises serious concerns about the accuracy of the information being reported and the creditor 's practices. 
Under the FCRA, specifically 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ), furnishers of information to credit reporting agencies have a duty to provide accurate information. The discrepancy between the " charged off '' status and the lack of a 1099-C form suggests a violation of this provision.

Furthermore, 15 U.S.C. 1681s-2 ( b ) requires furnishers to conduct a reasonable investigation of disputed information. I believe [ Creditor Name ] has failed to properly investigate and correct this inaccuracy, despite my attempts to resolve the issue directly with them. 
Additionally, this account is not being reported consistently to all three major credit reporting agencies ( XXXX, XXXX, and XXXX ). This inconsistent reporting further violates the FCRA 's requirement for accurate and complete information, as stipulated in 15 U.S.C. 1681e ( b ).

I am concerned that this situation constitutes fraud and extortion. By reporting the debt as " charged off '' without issuing a 1099-C, the creditor may be attempting to collect on a debt that has been forgiven for tax purposes, while simultaneously damaging my credit. This practice could be seen as an unfair or deceptive act under 15 U.S.C. 45 ( a ).

The inaccurate reporting has caused me significant harm, including statutory damages as defined under the FCRA. According to 15 U.S.C. 1681n, I may be entitled to actual damages, punitive damages, and reasonable attorney 's fees for willful noncompliance with the FCRA.

I request that the CFPB investigate this matter and require UPGRADE to : Provide documentation supporting the " charged off '' status Issue a Form 1099-C if the debt has indeed been forgiven Correct any inaccurate information on my credit report Ensure consistent reporting across all three major credit reporting agencies Cease any attempts to collect on this debt if it has been forgiven Compensate me for the statutory damages incurred due to their inaccurate reporting The failure of [ Creditor Name ] to address these concerns has caused significant damage to my credit and financial well-being. Their actions appear to be part of a pattern of behavior that the CFPB should investigate, as credit reporting issues continue to be the most common complaint received by your agencyXXXX

Thank you for your attention to this matter. I look forward to a resolution that ensures compliance with federal law, protects consumers from such practices, and provides appropriate compensation for the damages I have suffered.

Company response to consumer: Closed with explanation