Consumer complaint received 2025-06-19 00:00:00
Product: Debt collection — Credit card debt
Issue: Attempts to collect debt not owed — Debt is not yours
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: SC

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX # XXXXXXXX XXXX SC XXXX XXXX XXXX Date : XXXX To : XXXX USAA  XXXX XXXX XXXX, XXXX XXXX TX XXXX Subject : Demand for Investigation and Removal of Fraudulent Charge-Offs and 1099-C Violations To Whom It May Concern, I am writing to formally address and dispute significant discrepancies and questionable accounting practices reported by your institution. Upon evaluating your financial reporting in accordance with Generally Accepted Accounting Principles ( GAAP ) and reviewing my credit file and IRS filings, I believe your company has engaged in fraudulent and deceptive practices in violation of both credit reporting laws and IRS regulations. 
Issues Identified : 1. Improper Charge-Off Reporting : The account listed under Account Number XXXX has been reported as a charge-off on my credit report. However, there is no legitimate documentation supporting the legal validity of this debt, nor any substantiated balance due that adheres to GAAP standards of revenue recognition and debt extinguishment.

2. Failure to Issue IRS Form 1099-C : Under IRS regulations , once a debt is discharged or deemed uncollectible and written off as a loss, a 1099-C Cancellation of Debt form is legally required to be issued to the debtor and the IRS. Your company has failed to issue this document, indicating that you may have claimed a loss for tax benefit purposes while continuing to collect or report the debt, a clear indication of deception and potential tax fraud.

3. Violation of GAAP and Misleading Accounting : By failing to reconcile the charge-off through proper debt forgiveness documentation and by continuing to list an extinguished liability on my credit profile, you have misrepresented your financial standing both to the IRS and to credit reporting agencies. This misreporting may constitute material fraud under GAAP and deceptive reporting practices under the Fair Credit Reporting Act ( FCRA ).

Demands : Immediate deletion of the fraudulent charge-off from all credit reporting agencies.

Issuance of IRS Form 1099-C, retroactive to the year the charge-off was recorded, in compliance with IRS tax law.

A written explanation detailing the accounting treatment of the charge-off and whether it was claimed as a loss or remains collectible.

Full documentation showing legal ownership, assignment, and validation of the alleged debt.

Failure to respond to this letter within 15 business days will result in the filing of complaints with : The IRS Office of Professional Responsibility The Consumer Financial Protection Bureau ( CFPB ) The Federal Trade Commission ( FTC ) The Office of the Inspector General ( OIG ) This matter is serious, and I expect full transparency and compliance with federal law and GAAP standards. 

Sincerely, XXXX XXXX

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 non-monetary relief