Consumer complaint received 2025-08-03 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Notice to repossess
Company: FC HoldCo LLC
State: AZ

Complaint narrative:
To Whom It May Concern, I am submitting this formal complaint for the 3rd time regarding Flagship Credit Acceptance LLC, which has engaged in unlawful and deceptive conduct in connection with the repossession and sale of my vehicle, inaccurate credit reporting, and violations of Arizona and federal consumer protection laws. 

Flagships recent response to the Consumer Financial Protection Bureau, dated XX/XX/year>, falsely claimed that they were not responsible for sending repossession sale notices to my correct address and that they are not obligated to issue me a Form 1099-C. Both claims are legally and factually incorrect. 

Failure to Notify Using Known Address Flagship stated they sent a pre-sale repossession notice to a private XXXX mailbox and claimed they have no responsibility for my not renewing that mailbox. However, they had my valid residential address on file from the very beginning : My drivers license, which was submitted with my application, showed my correct home address. 
My retail installment contract, which Flagship used to finance the vehicle, also includes this same address. 
My vehicle registration also shows the car was registered to my residential address, not a mailbox. 
Despite having this information, Flagship failed to use it to notify me of the repossession sale as required under UCC Article 9 and Arizona law. I never received any notice of the vehicles sale, nor any opportunity to redeem it. 
This violates Arizona Revised Statutes XXXX, which mandates that a secured party send a debtor " reasonable authenticated notification '' before disposing of collateral. The letter must be legible, traceable, and delivered. Flagship has yet to provide proof that thy did this and choosing not to mail the letter to my residential address and instead mailing the notice to my XXXX mailing address which is now a known-outdated addresswhen my correct address was availabledoes not meet this standard. 

1099-C Form Violation Flagship also stated that they are not obligated to send me an IRS Form 1099-C because they " did not cancel the debt. '' However : They charged off the account and reported the account to the credit bureau as a profit and loss write off.

They reported the account as an open charge-off to the credit bureaus for over 2 years damaging my credit rating. 
As a result, I am now subject to potential tax consequences for a debt they claim still exists but are not actively collecting. 
Under IRS regulations ( 26 U.S. Code 6050P ), a lender must issue a 1099-C when a debt of {$600.00} or more is discharged, settled, or becomes uncollectibleespecially after a charge-off. Flagships refusal to do so leaves me in financial limbo and violates federal tax reporting requirements. 

Unlicensed Lending in Arizona Flagship Credit Acceptance is not licensed to make, fund, or service consumer auto loans in the state of Arizona. They attempted to use the originating dealerships license to fund the loan ; however, once the dealership assigned the loan to Flagship, they became legally responsible for obtaining their own lender license.

This violates the following Arizona laws : A.R.S. 6603 ( A ) : Requires any person engaging in the business of a consumer lender to be licensed by the deputy director.

A.R.S. 44282 : Requires a license for any company purchasing or servicing auto retail installment contracts.

Flagship has no Arizona license. Continuing to service, collect, report, or enforce a loan in Arizona without proper licensing is illegal under both state and federal law. 

Summary of Violations Flagship Credit Acceptance has violated : * Arizona UCC repossession and sale notification laws * Federal Fair Credit Reporting Act ( FCRA ) for reporting unclear or misleading tradeline data * IRS tax code by refusing to issue a Form 1099-C or confirm the status of the deficiency balance * Arizona lending regulations for operating without a required state license * Consumer fraud protections by ignoring a valid service dispute and repossessing the vehicle under questionable contract terms Enclosed Documentation I am including the following to support this complaint : A copy of my drivers license showing my residential address A copy of the retail installment contract showing Flagship had the correct address on file ( my residential address is highlighted ) A copy of Flagships XX/XX/year> CFPB response A copy of my credit report showing Flagship reporting the account being reported negative for over 2 years and as a charge off and profit write off

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