Consumer complaint received 2025-02-04 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: WELLS FARGO & COMPANY
State: AL

Complaint narrative:
I am writing to file a formal complaint against WFBNA Card, a financial institution that has violated several consumer protection laws in relation to the charged-off account listed below. In addition to their failure to issue a 1099-C form for the written-off debt, as required under IRS guidelines, they have also incorrectly reported this account on my credit report despite my never having been late with a payment. Furthermore, I have fully paid off the account, yet it continues to be reported inaccurately. These violations are severely impacting my credit and financial standing. I request immediate intervention by the CFPB to address this unlawful conduct. 
Account Information : Account Name : WFBNA Card Account Number : XXXX Account Type : Charge Card Date Opened : XX/XX/XXXX Status : Account charged off. {$1400.00} written off. 
Amount Past Due : {$1400.00} ( as of XX/XX/XXXX ) Status Updated : XX/XX/XXXX Balance : {$1400.00} ( updated XX/XX/XXXX ) Credit Limit : {$1400.00} Highest Balance : {$1400.00} On Record Until : XX/XX/XXXX Account Name : WFBNA Card Account Number : XXXX Account Type : Secured Card Date Opened : XX/XX/XXXX Status : Paid, Closed. 
Status Updated : XX/XX/XXXX Balance : {$0.00} Credit Limit : {$300.00} Highest Balance : {$310.00} Grounds for Complaint : Failure to Issue 1099-C for Written-Off Debt : According to IRS guidelines, when a creditor writes off a debt and the amount forgiven is {$600.00} or more, the creditor is legally obligated to issue a 1099-C form to the debtor. WFBNA Card has written off the debt for {$1400.00} on the account, yet they have failed to issue me a 1099-C form, in direct violation of 26 U.S. Code 108. This is a serious violation of IRS tax law, as canceled debt is considered income, and the 1099-C form must be sent for tax reporting purposes.

Improper Reporting of Canceled Debt : Despite the debt being written off, WFBNA Card continues to report this account as a charged-off account with a balance of {$1400.00} on my credit report. This is a violation of the Fair Credit Reporting Act ( FCRA ), which requires creditors to report only accurate and current information. As the debt was written off, it should no longer be reported as past due. Failing to correct this information constitutes a misrepresentation and violates the FCRAs provisions on inaccurate credit reporting ( 15 U.S.C. 1681s-2 ).

Account Is Paid Off and No Late Payments : I want to emphasize that I have never been late with a payment on this account. In fact, this account was paid off in full. The reporting of this charged-off account as past due is not only inaccurate but misleading to future creditors and employers. This information is severely damaging to my credit score and overall financial reputation.

Violation of Consumer Protection Laws : By continuing to report this written-off debt as past due, WFBNA Card has violated the Fair Debt Collection Practices Act ( FDCPA ), which prohibits the reporting of inaccurate, misleading, or incomplete information. Furthermore, the failure to issue a 1099-C form is a violation of tax regulations, as well as consumer reporting laws.

Legal Violations and Requested Action : Violation of IRS Tax Code : WFBNA Card is legally obligated to issue a 1099-C form for the written-off {$1400.00}, but they have failed to do so. 

Violation of the Fair Credit Reporting Act ( FCRA ) : Reporting a written-off debt as past due is a violation of the FCRA, which mandates accurate and fair reporting. 

Violation of the Fair Debt Collection Practices Act ( FDCPA ) : The continued reporting of this debt as past due, despite it being paid off and written off, is a violation of the FDCPA.

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 non-monetary relief