Consumer complaint received 2025-01-20 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: Consumer Portfolio Services, Inc.
State: NC

Complaint narrative:
Subject : Formal Complaint Against Consumer Portfolio Services for Violations of Consumer Protection Laws, Charge-Off Reporting, and Failure to Issue 1099-C Form Dear Sir/Madam, I am submitting a formal complaint against Consumer Portfolio Services due to several serious concerns that have negatively impacted my financial situation. I seek immediate intervention from the Consumer Financial Protection Bureau ( CFPB ) to address these violations of consumer protection and credit reporting laws. Below are the details of the issues I am experiencing : 1. Vehicle Purchase Violations I entered into an agreement with Consumer Portfolio Services to finance a vehicle purchase on XX/XX/XXXX. However, shortly after the purchase, I encountered state violations related to the vehicle and significant mechanical issues that became evident within 132 days. These issues have caused significant hardship, as the vehicle was not fit for use, violating North Carolina consumer protection laws related to vehicle sales and warranties. 

It is my understanding that the vehicle was sold in violation of state laws, as it was not compliant with necessary safety standards and had defects that should have been disclosed to me at the time of sale. I am requesting that the CFPB investigate this situation and help facilitate a resolution under consumer protection laws, as the sale of this defective vehicle has caused me undue financial hardship. 

2. Charge-Off Status Without Proper Notification The account related to this loan was charged off as of XX/XX/XXXX, but I have not received any notification about the charge-off status. According to the Fair Debt Collection Practices Act ( FDCPA ), I am entitled to proper notice regarding any charge-off, and I have not been informed in accordance with the law. The failure to notify me of this status is a clear violation of my rights as a consumer.

Additionally, the accounts charge-off was reflected on my credit report without the proper written notice, which is required by law.

3. Failure to Issue 1099-C Form According to the IRS, a 1099-C form must be issued when a debt is forgiven or canceled, including in the case of a charge-off. However, I have not received the necessary 1099-C form for the canceled debt from Consumer Portfolio Services . This failure to provide the re
quired form is creating complications in my tax filings and financial record-keeping.

As the lender, Consumer Portfolio Services is legally obligated to issue this form when the loan is charged off. I request immediate action to ensure that the 1099-C form is provided.

Request for Immediate Action Given the serious nature of these violations, I am requesting the following actions from the CFPB : Investigation into the sal
e of the vehicle, focusing on the state violations and mechanical issues related to the vehicle.

Immediate correction of the charge-off status on my credit report and proper notification to me, as required by the Fair Debt Collection Practices Act.

Issuance of the required 1099-C form for the canceled debt, in compliance with IRS guidelines .

Full documentation of the actions Consumer Portfolio Services intends to take to resolve these issues and bring them into compliance with applicable consumer protection and credit reporting laws.

Request for CFPB Intervention I respectfully request that the CFPB intervene in this matter and assist in the resolution of these serious issues. I am unable to resolve these matters directly with Consumer Portfolio Services, and I am requesting that the CFPB hold the company accountable for its violations.

Please inform me of any further documentation or information required to assist in your investigation. I am looking forward to your prompt response and resolution of these issues. 

Thank you for your attention to this complaint.

Company response to consumer: Closed with explanation