Consumer complaint received 2025-07-11 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Unable to receive car title or other problem after the loan is paid off
Company: Lendmark Financial Services
State: NC

Complaint narrative:
Complainant Information : Name : XXXX XXXX XXXX Address : XXXX XXXX XXXX, XXXX, NC XXXX Creditor/Institution : Name : Lendmark Financial Services Branch Address : XXXX XXXX XXXX XXXX, XXXX, NC XXXX XXXX : XXXX Complaint Summary : I am filing this formal complaint against Lendmark Financial Services for violating federal and state laws, causing emotional distress, and unlawfully withholding the title to my lawfully owned vehicle despite having issued a Form 1099-C, which cancelled the alleged debt. 

On or about XX/XX/XXXX, Lendmark Financial Services issued a corrected IRS Form 1099-C in the amount of {$10000.00}, officially reporting the cancellation of debt related to my XXXX XXXX XXXX ( VIN : XXXX ). Under IRS regulations, the issuance of Form 1099-C constitutes a cancellation of debt, and the creditor is barred from attempting further collection, reporting, or enforcement related to that obligation. 

Despite this, Lendmark Financial Services : Has refused to release my vehicle title, which I am lawfully entitled to after debt cancellation ; Continued collection efforts, including improperly reporting the debt on my credit report ; Attempted to sue me in court over this discharged debt ; Caused severe emotional distress, anxiety, and hardship during an already difficult financial period. 

This conduct is not only unfair and deceptive but also a clear violation of the following : Legal Violations : 1. Fair Debt Collection Practices Act ( FDCPA ), 15 U.S. Code 1692e Prohibits false, deceptive, and misleading representations in connection with debt collection. 2. North Carolina General Statutes
75-54 & 75-55 Prohibits unfair debt collection practices, including pursuing debts not legally owed.

3. 26 U.S. Code 6050P Once Form 1099-C is filed, the debt is legally considered cancelled, and any further collection is prohibited.

4. UCC 9-620 Mandates the release of title or collateral once the obligation is satisfied, cancelled, or discharged.

Harms and Impact : Because of this creditors unlawful actions, I have endured serious emotional and psychological harm. I have lost sleep, suffered panic attacks, and struggled financially because I can not access my vehicle title, which affects my transportation and livelihood. I feel intimidated, harassed, and victimized despite having followed the law and received confirmation that this debt was cancelled. I am now facing damage to my credit and mental well-being, all due to improper practices by Lendmark Financial Services .

Relief Requested : 1. Immediate release of my vehicle title for the XXXX XXXX XXXX ( VIN : XXXX ) ; XXXX. Cease all collection activities, including any credit reporting or court filings regarding this debt ; XXXX. Written confirmation of debt cancellation and release of lien ; XXXX. Investigation and enforcement by CFPB into this creditors violations ; XXXX. Any further relief deemed just, including consideration for emotional distress and hardship caused.

Attached Evidence : IRS Form 1099-C ( corrected, issued April 17, 2025 ) ; Affidavit of Truth and supporting declaration ; Formal demand letters previously sent to the creditor ; Evidence of court action and withheld title. 

Respectfully submitted, XXXX XXXX XXXX

Company response to consumer: Closed with explanation