Consumer complaint received 2024-11-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: FIRST PORTFOLIO SERVICING INC
State: MO

Complaint narrative:
To Whom It May Concern, This letter serves as a formal dispute and demand for action regarding the reporting of an alleged charge-off account by your company Total Visa on my credit report. The account is listed as a charge-off as of XX/XX/year>, yet the balance in question is under {$600.00}, and no 1099-C has been issued to denote debt forgiveness for tax purposes.

Pursuant to 15 U.S.C. 1681i of the Fair Credit Reporting Act ( FCRA ) and 15 U.S.C. 1692g of the Fair Debt Collection Practices Act ( FDCPA ), I am requesting a thorough investigation of this account and immediate remediation of inaccurate or incomplete reporting. 

Legal Issues and Requests Debt Validation Under FDCPA : Provide me with validation of this debt, including the original signed contract that evidences my agreement to the alleged debt and any assignment contract demonstrating your authority to report and collect on this debt.

Failure to provide these documents will constitute a violation of the FDCPA and confirm the debt as unverifiable, necessitating the removal of this account from my credit report.

Incorrect Reporting and Lack of 1099-C Issuance : As per IRS guidelines , creditors must issue a Form 1099-C for canceled or discharged debts of {$600.00} or more. If this debt has not been forgiven, you must substantiate the charge-off status with complete records. If the debt was forgiven, provide the 1099-C immediately.

Continuing to report this account as charged-off while failing to issue a 1099-C misrepresents the account status and violates the FCRAs accuracy requirements under 15 U.S.C. 1681s-2. 
Procedures for Accuracy : Under 15 U.S.C. 1681i ( a ) ( 6 ) ( B ), you are required to describe the procedures used to verify the accuracy and completeness of this information. Provide this description within 15 days of completing your investigation. 
Demands I demand the following : Validation of the alleged debt, including the original signed agreement and any assignment of ownership rights. 
Immediate issuance of a Form 1099-C if the debt has been forgiven or proof that the debt remains valid and collectible.

Immediate correction of my credit report to reflect " PAID IN FULL/AS AGREED '' or complete removal of this account.

Failure to comply with this demand will leave me no choice but to escalate this matter by filing complaints with the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), and state regulatory agencies. I also reserve the right to pursue legal remedies for violations of the FCRA and FDCPA, which may include statutory and punitive damages.

This issue is of critical importance as it continues to harm my financial standing and creditworthiness, impeding my ability to secure basic financial opportunities. I expect your prompt response and resolution within 30 days of receipt of this letter. 

Sincerely, XXXX XXXX

Company public response: Company believes the complaint provided an opportunity to answer consumer's questions
Company response to consumer: Closed with explanation