Consumer complaint received 2025-08-12 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Old information reappears or never goes away
Company: CL Holdings LLC
State: TX

Complaint narrative:
To Whom It May Concern : I, XXXX XXXX XXXX, a XXXXXXXX XXXX XXXX XXXX, am submitting this formal complaint and demand regarding XXXX XXXX XXXX  ( XXXX ), XXXX inaccurate and unlawful reporting and/or collection attempts on an account that was charged-off and closed. XXXX XXXX continued reporting of a balance and/or furnishing of inaccurate information to credit reporting agencies, despite the accounts charged-off and closed status, constitutes violations of the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq., and the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq., as well as other applicable state and federal consumer protection statutes. 

Factual Background The account in question was charged-off and closed by XXXX XXXX. Under industry-standard credit reporting guidelines, a charged-off and closed account that has been sold must be reported with a {$0.00} balance and the notation 'sold/closed. ' Despite this, XXXX XXXX continues to inaccurately report a balance and/or permit collection activity on the alleged debt. 

If the account has been sold, XXXX XXXX no longer has any right to collect or report a balance. If a Form 1099-C was issued, this represents a cancellation of debt and any continued collection activity or reporting of a collectible balance is deceptive and unlawful. 

Legal Framework and Relevant Case XXXX XXXX XXXX XXXX XXXX XXXX  ( XXXX ), XXXX. ( XXXX XXXXXXXX. No. XXXX ) XXXX XXXX agreed to a $ XXXX class settlement for failing to properly update credit reporting and for collecting on charged-off accounts that had been sold and later discharged in bankruptcy. Required deletion/refund relief for affected consumers. 
XXXX v. XXXX XXXX, XXXX. XXXX ( XXXX XXXX. XXXX XXXX, XXXX ) Court held that XXXX XXXX  issuance of a Form 1099C can plausibly suggest cancellation of indebtedness, supporting consumer claims against continued collection or inaccurate reporting. 
Mennes v. XXXX XXXX, XXXX. ( XXXX XXXX XXXXXX/XX/XXXX ) Recognized FDCPA-based claims tied to XXXX XXXX  collection conduct ; noted 1099C alone does not automatically cancel debt but can support claims when paired with misleading conduct. 
XXXX  XXXX v. XXXX, XXXX. XXXX, XXXX XXXX XXXX ( XXXX XXXX XXXXXXXX XXXX, XXXX ) Held that issuance of a 1099C does not, by itself, cancel the debt ; important when distinguishing facts where cancellation is clear. 
XXXX XXXX XXXX XXXX XXXX  ( XXXX ), XXXX, XXXX ( XXXXXXXX XXXX XXXX  XXXX, XXXX ) Discussed FCRA furnisher liability and the duty to reasonably investigate inaccuracies upon notice from a CRA. 
XXXX XXXX, XXXXXXXX XXXX XXXX XXXXXXXX ( XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX ) Clarified that charge-off is an accounting action only ; however, post-charge-off reporting must still be accurate and lawful. 
Violations By continuing to report a balance and/or furnish inaccurate information to credit reporting agencies on a charged-off, closed, and/or sold account, XXXX XXXX has violated : FCRA 1681s2 ( b ) : Duty of furnishers to provide accurate information and to conduct a reasonable investigation upon notice of dispute.

FDCPA 1692e : Prohibition against false, deceptive, or misleading representation of the legal status of a debt.

FDCPA 1692f : Prohibition against unfair or unconscionable means to collect or attempt to collect a debt. 

Demands for Resolution Accordingly, I hereby demand that XXXX XXXX and any affiliated data furnishers or debt buyers : 1. Immediately delete the inaccurate tradeline from all consumer reporting agencies.

2. Cease any and all collection activities related to this alleged debt.

3. Provide written confirmation of the above within 15 days of receipt of this notice.

Failure to comply will result in the filing of formal complaints with the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), and the Office of the Attorney General, and may also result in legal action in state or federal court.

Company response to consumer: Closed with explanation