Consumer complaint received 2025-05-10 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: NAVY FEDERAL CREDIT UNION
State: FL

Complaint narrative:
Below is the information I submitted to the creditor to validate the debt which has not been done : I am writing to formally dispute the reporting of a charged-off account appearing on my credit report. The details are as follows : Creditor Name : Navy Federal Credit Union Account Number : XXXX XXXX XXXX XXXX Status Reported : Charged-Off Date Reported : XX/XX/year> This entry is inaccurate, misleading, and may be unlawfully reported under both federal credit and tax laws. I am requesting its immediate reinvestigation and deletion for the following reasons : Grounds for Dispute 1. FCRA Violation Incomplete and Inaccurate Reporting Under the Fair Credit Reporting Act ( 15 U.S.C. 1681i ), all information furnished to consumer reporting agencies must be accurate, complete, and verifiable. If a charged-off account has been canceled or forgiven, and a Form 1099-C ( Cancellation of Debt ) has been issued, then the debt has been legally settled and can not continue to be reported as collectible or delinquent. 

If the debt was truly charged off and forgiven as income ( as reported to the IRS ), then continuing to list it on my credit report in any derogatory fashion constitutes dual harm it falsely labels me as delinquent and potentially subjects me to double liability. 

2. IRS Reporting vs. Credit Reporting Misrepresentation of Status If the creditor reported this charge-off to the IRS on a Form 1099-C, they declared the debt as income, not an active obligation. Once a debt is forgiven and reported to the IRS, it can not remain on a consumer credit report as a collectible debt or delinquent obligation. 
I am requesting proof of whether a 1099-C was issued, and if it was, this account must be immediately deleted from my credit file. 

3. Violation of Privacy Under GLBA If non-public personal information related to a discharged or settled debt was shared or mishandled after cancellation, that may violate provisions of the Gramm-Leach-Bliley Act. Any continued reporting must be justified with a legally valid and enforceable debt instrument, which I hereby request you validate. 

4. Double Dipping form 1099A This filing with the Internal Revenue Service indicates that the property securing the debt was either abandoned or acquired by you. Based on this filing, it is presumed you may have claimed a financial loss or tax credit, which constitutes the account as disposed of. 
If a Form 1099-C ( Cancellation of Debt ) was subsequently filed, then the debt has been formally discharged, treated as income to me, and is no longer legally enforceable. 
5. Pooled, Securitized and Trust Account Show the validity and current ownership of the above-referenced account, which is being reported and/or collected under your name. After conducting a comprehensive forensic audit, I have obtained verifiable documentation indicating that this account has been pooled, securitized, and transferred to a trust. 
The audit clearly reveals that this account was transferred from your institution to an affiliated entity and eventually placed into a securitized trust, whereby investors receive the benefits of the accounts receivables. This transfer appears to have been done without disclosure to me as the consumer, and no legal notice of change in ownership or assignment has been issued in compliance with applicable laws. 
Accordingly, under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g, and the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2, I hereby request : 1. The name and address of the current legal owner of the debt. 
2. A complete chain of title and assignment history showing lawful ownership. 
3. A certified copy of the Pooling and Servicing Agreement ( PSA ) or any legal document confirming the account transfer to a third party. 
4. A signed contract or instrument bearing my signature showing your authority to collect on behalf of the current owner. 
5. Confirm whether a 1099-C was issued to the IRS for the debt cancellation. 
6. If verified as canceled/forgiven, the account must be fully removed from my credit file. 
7. Provide written confirmation of the outcome within 30 days as required by law. 
Until this information is provided in full, I demand that you cease all collection activity and correct any inaccurate or incomplete reporting to the credit bureaus. Failure to do so may result in legal action for : Willful misrepresentation of debt ownership Continued collection of a debt not lawfully held Furnishing false information to credit reporting agencies Emotional distress, reputational damage, and financial harm You have 30 days to respond to this notice with the requested documentation. If you can not validate the ownership of the account, you must immediately remove all entries from all credit reporting agencies and cease collection attempts. 
Please be advised this letter serves as a formal notice of dispute under federal law. All future communication should be in writing.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with non-monetary relief