Consumer complaint received 2024-12-03 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: CarMax, Inc.
State: GA

Complaint narrative:
To Whom It May Concern, I am filing this formal complaint against CarMax Business Services, LLC concerning their handling of a retail installment contract for my XXXX  XXXX XXXX ( VIN : XXXX ). This complaint addresses violations of the Fair Credit Reporting Act ( FCRA ), Fair Debt Collection Practices Act ( FDCPA ), and Truth in Lending Act ( TILA ). Due to the significant financial and emotional harm caused by these actions, I demand monetary relief in addition to corrective actions. 

Key Violations 1. Failure to Validate the Debt CarMax has failed to validate the debt despite repeated disputes. Under FDCPA 1692g ( b ), CarMax is required to : Provide a copy of the original retail installment agreement.

Submit chain of title documentation, proving CarMaxs legal ownership of the debt.

Substantiate the balance, including fees, interest, and payments.

Failure to validate the debt invalidates CarMaxs collection and reporting activities and violates federal law. 

2. Improper Repossession During Arbitration CarMax repossessed my vehicle while the account was subject to active arbitration, a process that should have paused all enforcement actions. This repossession : Breaches the arbitration process outlined in the agreement.

Violates FDCPA 1692f, prohibiting unfair collection practices. 
This repossession caused significant harm, forcing me to pay for vehicle rentals and disrupting my personal and professional life.

3. Inaccurate and Misleading Reporting CarMaxs reporting to credit bureaus is inaccurate and misleading, violating FCRA 1681e ( b ), which requires maximum possible accuracy. Specifically : CarMax reported multiple " charge-off '' ( CO ) notations across several months, exaggerating the severity of the delinquency.

The reporting fails to reflect the disputed status of the account, as required under FCRA 1681i ( c ).

These inaccuracies mislead creditors and severely harm my creditworthiness.

4. Violation of FCRA 1681b Permissible Purpose CarMax has not demonstrated that it had a permissible purpose to report this account under FCRA 1681b ( a ). Without my written authorization or proper validation, CarMaxs reporting is unlawful.

5. Violation of TILA Failure to Provide Notice CarMax has not provided proof of compliance with TILA 1666b, requiring a 21-day notice for payment due dates. Any late payment or charge-off entries lacking such notice are invalid.

Harm Caused 1. Financial Harm : Vehicle Rental Costs : Following the repossession, I incurred significant costs for vehicle rentals to meet daily transportation needs.

Loss of Financial Opportunities : Inaccurate credit reporting has resulted in higher borrowing costs and denied credit applications.

2. Emotional XXXX  : The wrongful repossession and inaccurate reporting caused undue stress, disrupting my and my daughters quality of life. Missed appointments and professional opportunities have compounded this harm. 
3. Reputational Damage : The misleading credit entries tarnish my reputation as a reliable borrower, further affecting my ability to secure financial opportunities.

Company response to consumer: Closed with explanation