Consumer complaint received 2025-05-03 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc.
State: NC

Complaint narrative:
I am writing to formally dispute the accuracy and legality of the continued reporting of a charged-off account that has been written off and sold by the original creditor. On XX/XX/year>, I formally disputed this account on the basis that the original creditor wrote off and sold the account, meaning they were fully compensated either through sale or tax offset. As such, they have no lawful claim to report an outstanding balance. Under 15 U.S.C. 1681i ( a ) ( 1 ) ( A ), They are required to investigate and respond to consumer disputes within 30 days. That time has passed. 

This continued reporting as an outstanding balance owed is false, misleading, and in violation of federal law, including but not limited to : 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) Duty of Furnishers of Information to Provide Accurate Data This section prohibits any entity from furnishing information to consumer reporting agencies that it knows or has reasonable cause to believe is inaccurate. Reporting a debt that has been written off and sold as still " owed '' or " outstanding '' violates this provision. 

XXXX. 15 U.S.C. 1681a ( 4 ) Definition of Consumer Report The law defines a consumer report as information bearing on a consumers creditworthiness. When a charged-off debt is sold, the original creditor has no remaining financial interest and should not report it as a currently due debt, as that misrepresents the status and nature of the account. 

XXXX. 15 U.S.C. 1681e ( b ) Reasonable Procedures to Assure Maximum Possible Accuracy Consumer reporting agencies are required to follow reasonable procedures to ensure maximum possible accuracy. Continuing to display a balance due on a sold charge-off fails this standard. 

XXXX. 15 U.S.C. 1692e ( 2 ) ( A ) ( FDCPA ) False Representation of the Legal Status of a Debt Debt collectors and creditors are prohibited from falsely representing the character, amount, or legal status of any debt. Representing a charged-off and sold debt as still owed to the original creditor violates this statute.

5. IRS Form 1099-C and Discharge Implication In many cases, a creditor that writes off and sells a debt issues a Form 1099-C, indicating that the debt has been canceled and the creditor has taken a tax benefit. Once a debt is canceled or forgiven, it is no longer legally collectible by the original creditor, and it should not be reported as outstanding.

The original creditor has been fully compensated either through a sale or tax offset.

The debt, if sold, is now owned by a third-party debt buyer, and the original creditor has no legal claim to it.

Reporting it as outstanding by the original creditor is factually incorrect and legally noncompliant.

I am requesting that this trade line be corrected or removed to reflect the true and lawful status of the account.

Pursuant to my rights under the Fair Credit Reporting Act, I request : Immediate re-investigation of this accounts accuracy. 

Correction or deletion of any inaccurate, misleading, or outdated information. 

Written confirmation of the results within 30 days, as required by 15 U.S.C. 1681i.

Failure to comply may result in the pursuit of further remedies under federal law, including complaints to the Consumer Financial Protection Bureau ( CFPB ) and possible civil litigation for willful or negligent

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