Consumer complaint received 2025-07-08 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: Global Lending Services LLC
State: IL

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  Subject : LEGAL DEMAND REMOVAL OF DEROGATORY CREDIT REPORTING UNDER FCRA 1681e ( b ), STAC AGREEMENT VIOLATION, & ADMISSION OF LIABILITY To Whom It May Concern, I am submitting this letter in reference to several XXXX XXXX XXXX XXXX XXXX XXXX XXXX credit builder accounts that continue to report inaccurate, outdated, and misleading derogatory information despite being closed and paid in full. The specific accounts in question include, but may not be limited to : XXXX XXXX XXXX Your XX/XX/XXXX response to CFPB Complaint # XXXX constitutes a written admission that at least one of these accounts ( XXXX ) was reported as delinquent for XX/XX/XXXX, XX/XX/XXXX, and XX/XX/XXXX, despite being paid and subsequently closed. Additionally, a post-closure payment was accepted and applied to the account on XX/XX/XXXX. 

XXXX. Violation of the Fair Credit Reporting Act ( 15 U.S.C. 1681e ( b ) ) Under the Fair Credit Reporting Act, consumer reporting agencies and data furnishers are required to maintain procedures that ensure the maximum possible accuracy of information. Continued reporting of derogatory payment history on an account that has been : Fully satisfied, Closed with a {$0.00} balance, and No longer contractually active, fails to meet the accuracy standard under 1681e ( b ). Once an account is resolved and the consumer no longer presents risk or outstanding liability, ongoing reporting of past delinquencies serves no predictive value and materially misrepresents the consumers creditworthiness. 

2. STAC Agreement Violation Improper Furnishing of Obsolete or Incomplete Data As you are aware, the STAC ( Standardized Data Reporting Agreement ) governs how data furnishers report tradeline information to consumer reporting agencies. Under this agreement, furnishers must : Cease reporting obsolete or unverifiable derogatory data, Update tradeline statuses to reflect the current condition of the account, and Ensure that closed-paid accounts are not unfairly penalized post-resolution. 

The STAC Agreement does not permit the indefinite continuation of derogatory remarks once an account is closed and paid. Unless otherwise authorized by statute or explicit contractual language, your continued reporting constitutes a violation of the STAC Agreement and improper credit furnishing.

3. Admission of Liability Continued Reporting of Misleading Data Post-Closure Your own letter confirmed that : A payment made on XX/XX/XXXX was applied to unpaid fees after the account had been closed. 

This is a direct admission that derogatory information was allowed to remain on my credit report even after full resolution, placing you in clear violation of : FCRA 1681e ( b ) ( failure to ensure accuracy ), FCRA 1681i ( a ) ( failure to reinvestigate and correct ), and FCRA 1681s-2 ( a ) ( 1 ) ( A ) ( duty not to furnish information known to be inaccurate ). 

Moreover, this represents the kind of conduct rejected by the court in Dennis v. BEH-1, LLC, 520 F.3d 1066 ( 9th Cir. 2008 ), which held that outdated or misleading data, once identified, must be corrected or removed.

4. Violation of 15 U.S.C. 1666b Application of Payments and Penalty Reporting Per 15 U.S.C. 1666b, creditors are required to allocate payments in a way that is fair and does not result in unfair or deceptive billing or reporting practices. The acceptance of a payment after the account closure and then continuing to report the account negatively not only defies common sense but also violates this statutes core principle : timely application and fair representation of resolved debt.

5. Deceptive Trade Practices and Emotional Harm ( Preserved for Civil Action ) This repeated inaccurate reporting has caused me : Loss of credit opportunities, Emotional distress, and Ongoing reputational harm.

I reserve all rights under state UDAP ( Unfair and Deceptive Acts and Practices ) statutes and common law, and this letter will serve as formal documentation should further litigation become necessary.

DEMAND FOR IMMEDIATE RELIEF : You are hereby formally required to : 1.Remove all derogatory payment history on the accounts referenced above, 2.Update all credit bureaus to reflect : Closed Paid as Agreed {$0.00} Balance No Late Payments, 3.Cease and desist from further furnishing of outdated or misleading derogatory remarks, 4.Provide written confirmation of these corrections within 15 calendar days of receipt.

Failure to comply will result in immediate escalation via : Formal enforcement request to the Consumer Financial Protection Bureau, Complaint to the Federal Trade Commission, Formal report of STAC Agreement violation to associated CRAs and data furnishers, and Referral to legal counsel for civil remedy under 15 U.S.C. 1681n and 1681o ( actual, statutory, and punitive damages plus legal fees ). 



Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation