Consumer complaint received 2024-12-24 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: WELLS FARGO & COMPANY
State: TX

Complaint narrative:
I am filing this complaint against WFBNA Auto ( also associated with Wells Fargo Auto, Wells Fargo Dealer Services, and Wells Fargo Bank , N.A . ) for multiple violations of federal law, failure to comply with IRS regulations regarding written-off debt, and reporting potentially fraudulent and inaccurate information about a debt on my credit reports. Below are the specific violations and inaccuracies, along with the grounds for my request to have this account removed immediately from my credit reports.

Violations Identified 1. Failure to Provide Validation of Debt Despite my formal request, WFBNA Auto failed to provide : A signed agreement or contract confirming my obligation to repay the alleged debt.

Proof that they legally own this debt and have the right to collect it. 
Evidence to support the balance of {$3900.00}, as reported.

This failure violates 15 U.S.C. 1692g ( b ) of the Fair Debt Collection Practices Act ( FDCPA ), which requires debt collectors to cease collection activities until they validate the debt when requested.

2. Reporting of a Potentially Fraudulent Debt I have no knowledge of this debt, and I have never been notified of its existence before seeing it on my credit reports. I have never signed any agreement or contract with WFBNA Auto that obligates me to repay this alleged debt.

The companys failure to provide validation raises concerns that this debt may be fraudulent. Reporting unverifiable or fraudulent debts to credit bureaus violates the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( b ) ), which mandates that furnishers of information verify the accuracy and legitimacy of the debts they report.

3. Failure to Notify Me of Debt Collection Efforts WFBNA Auto failed to notify me about this alleged debt as required by 15 U.S.C. 1692g ( a ) of the FDCPA, which mandates that debt collectors provide written notice of a debt within five days of their initial communication.

4. Failure to Issue a Form 1099-C for Written-Off Debt The account comments indicate that WFBNA Auto charged off this debt as a loss, which means they likely wrote it off as uncollectible. However, I have not received a Form 1099-C ( Cancellation of Debt ), as required by the Internal Revenue Service ( IRS ).

According to IRS Publication 4681 and 26 U.S.C. 6050P, if a creditor cancels a debt of {$600.00} or more, they are required to issue a 1099-C to both the debtor and the IRS, indicating that the debt has been forgiven.

By failing to issue a 1099-C, WFBNA Auto is in violation of IRS regulations .

Additionally, once a debt is canceled and reported via a 1099-C, it can no longer be reported to credit bureaus as a collectible debt. Reporting such a debt violates the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( a ) ). 

XXXX. Inaccurate Reporting of Account Information Several inaccuracies appear in the credit reporting for this account : Discrepancies in the Last Reported Dates Across Bureaus XXXX and XXXX report the last reported date as XX/XX/XXXX. 
XXXX reports it as XX/XX/XXXX. 
These inconsistencies violate the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( a ) ), which requires accurate and consistent reporting of consumer information. 

Conflicting Comments Section Across Bureaus XXXX states, Charged off as bad debt. Profit and loss write-off. 
XXXX  states, Merchandise was taken back by credit grantor ; there may be a balance due. Unpaid balance reported as a loss by the credit grantor. 
XXXX states, Charged off account. Auto. 
These conflicting comments create confusion and violate XXXX U.S.C. 1681e ( b ), which requires credit reporting agencies and furnishers to maintain accurate and up-to-date information. 

Inconsistent Reporting of Date Last Active XXXX reports the Date Last Active as XX/XX/XXXX. 
XXXX reports it as XX/XX/XXXX. 
XXXX reports it as XX/XX/XXXX. 
This discrepancy violates the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( a ) ).

Inaccurate Payment History The payment history reflects CO ( Charge-Off ) status inconsistently across different months and agencies. For instance, XXXX shows OK for all months in the past two years, despite the account being charged off.

This misrepresentation violates 15 U.S.C. 1681e ( b ), which requires the reporting of accurate payment history information.

6. Continued Reporting of Unverified and Written-Off Debt By continuing to report this unverified and likely written-off debt to the credit reporting agencies ( XXXX, XXXX, and XXXX ), WFBNA Auto is engaging in unfair and deceptive practices. This violates the Consumer Financial Protection Act ( 12 U.S.C. 5531 ), which prohibits unfair, deceptive, or abusive acts or practices.

I respectfully request the Consumer Financial Protection Bureau ( CFPB ) to : Conduct a thorough investigation of WFBNA Autos collection practices, reporting accuracy, and compliance with IRS regulations.

Impose appropriate penalties on WFBNA Auto if it is determined that they : Violated the FDCPA, FCRA, or IRS regulations.

Engaged in fraudulent or deceptive reporting practices.

Require WFBNA Auto to issue the appropriate 1099-C for the canceled debt if applicable and ensure that the debt is removed from all credit reports.

Notify state attorney generals and other regulatory bodies to address potential widespread misconduct by WFBNA Auto.

If this account continues to be reported inaccurately or fraudulently, I reserve the right to pursue legal action, including claims for statutory damages, attorneys fees, and any additional relief available under the FDCPA, FCRA, and applicable IRS regulations.

Given these violations and inaccuracies, I respectfully request that WFBNA Auto take the following actions immediately : Remove this account from all credit reporting agencies ( XXXX, XXXX, and XXXX ) due to the lack of validation, fraudulent nature, and inaccurate reporting of this account. 
Cease all collection activities related to this alleged debt. 
Provide written confirmation that this account has been removed from my credit reports and that no further collection actions will be taken. 

This complaint is not a request for further validation. The burden of proof lies with the debt collector to establish ownership and validity of the debt before engaging in collection activities or reporting it to credit bureaus. As WFBNA Auto has failed to meet these obligations and has reported inaccurate and potentially fraudulent information, I demand the immediate removal of this account from my credit reports.

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