Consumer complaint received 2025-03-16 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: Equity Sales Finance, Inc.
State: FL

Complaint narrative:
Dear CFPB, I am filing a formal complaint against EQUITY SALES for violations of the Fair Credit Reporting Act ( FCRA ), precisely 15 U.S.C. 1681s-2 ( b ), which governs the responsibilities of furnishers of information to credit bureaus. EQUITY SALES are reporting inaccurate, incomplete, and misleading information about my account to the credit bureaus, and they have failed to correct these inaccuracies despite my disputes. 

Background : EQUITY SALES is reporting an account with the following details : Account Number : XXXX Account Type : Installment sales contract Account Status : Derogatory ( Charged off as bad debt ) Balance : {$470.00} Payment Status : Collection/Chargeoff Last Reported : XX/XX/XXXX Date Last Active : XX/XX/XXXX Date of Last Payment : XX/XX/XXXX Discrepancies and Inaccuracies : Incorrect Account Status : The account is reported as charged off, but this is incorrect. [ Provide details about why the charge-off is inaccurate, e.g., " I paid the account in full '' or " I was never notified of the charge-off. '' ] Incorrect Balance : The balance is reported as XXXX, b u t t h e c o r r e c t b a l a n c e s h o u l d b e XXXX, but butthecorrectbalanceshouldbeXXXX because [ explain why the balance is incorrect, e.g., " I paid the account in full, '' or " the debt was settled. '' ] Incorrect Payment Status : The payment status is reported as Collection/Chargeoff, but this is inaccurate because [ explain why the status is incorrect, e.g., " I made all payments on time, '' or " the account was settled. '' ] Incomplete Payment History : The payment history is incomplete and does not reflect my actual payment behavior. For example, [ explain any missing or incorrect payment history details ].

Failure to Notify : EQUITY SALES never notified me that the account would be reported as a charge-off or sent to collections, which violates my rights under the FCRA.

Missing 1099-C Form : Since the account was charged off, EQUITY SALES must issue me a 1099-C form ( Cancellation of Debt ) and report the canceled debt to the IRS. I have not received a 1099-C form for this account, which raises questions about whether EQUITY SALES followed proper legal and tax procedures when charging off the debt. 

Insurance on the Debt : I am also inquiring whether EQUITY SALES filed an insurance claim on this debt. If they received insurance proceeds for the charged-off amount, they may not have the legal right to continue reporting the debt or attempting to collect it.

Legal Violations : EQUITY SALESs actions violate the following provisions of the Fair Credit Reporting Act ( FCRA ) : 15 U.S.C. 1681s-2 ( a ) : Furnishers must provide accurate and complete information to credit bureaus. 

EQUITY SALES is reporting inaccurate and incomplete information about my account, which violates this provision.

15 U.S.C. 1681s-2 ( b ) : Furnishers must investigate and correct inaccuracies upon receiving a dispute from a credit bureau . 

I have disputed these inaccuracies with the credit bureaus, but EQUITY SALES has failed to correct the errors. 

15 U.S.C. 1681c ( a ) : Outdated information ( e.g., charged-off accounts ) should not be reported misleadingly.

EQUITY SALES reports the account as a misleading and inaccurate charge-off.

Case Law References : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) : The Supreme Court held that furnishers of information must reasonably ensure the accuracy of the information they report. EQUITY SALESs failure to correct inaccuracies is unreasonable and violates this standard. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : The court ruled that furnishers must conduct a reasonable investigation when a consumer disputes information. EQUITY SALES has failed to conduct such an investigation. 

XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX : The court emphasized that furnishers must ensure the accuracy of the information they report. EQUITY SALESs inaccurate reporting violates this requirement.

Company response to consumer: Closed with explanation