Consumer complaint received 2025-02-01 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: WELLS FARGO & COMPANY
State: NJ

Complaint narrative:
Subject : Formal Complaint Violation of Fair Credit Reporting Act ( FCRA ) for Willful Noncompliance Attention Wells Fargo Corporate Compliance and Legal Department : I am writing to formally address your willful noncompliance with the Fair Credit Reporting Act ( FCRA ) regarding your erroneous, false and misleading reporting of an account that has been charged off and settled via IRS Form 1099-C, Cancellation of Debt. Your failure to accurately update and report this account, despite its charge-off status since XX/XX/XXXX, has resulted in severe harm to my credit history, financial standing, and personal reputation. 

Violation of the Fair Credit Reporting Act ( FCRA ) Wells Fargo has willfully and negligently continued to report an inaccurate balance on my credit file, despite my account being settled and closed under IRS regulations. This charge-off should have been properly filed and reported to the IRS during the XXXX tax year, yet Wells Fargo has failed to comply. The IRS has accepted my 1099-C form and will actively audit this matter for possible tax evasion, unreported income, failure to file a return, and failure to pay tax on earned income. This noncompliance is a serious offense that has caused unnecessary harm to me. 

Demand for Damages Due to Wells Fargos reckless and bad-faith reporting, I have suffered financial and reputational damages. As a result, I am demanding compensation of {$1000.00} per month for each month of inaccurate and incomplete reporting, beginning from XX/XX/XXXX, to the present, totaling {$15000.00} USD ( 15 months @ $ XXXX per month ). This amount is non-negotiable, as the IRS is now involved and aware of Wells Fargos bad-faith actions of potential tax evasion. 

Fraudulent Collection Attempts by XXXXXXXX XXXX XXXX XXXX. 
Additionally, debt collector XXXX XXXX XXXXXXXX, XXXX, acting on behalf of Wells Fargo, continues to attempt to collect on this erroneous debt, despite lacking any legal standing to do so. Since this debt has been settled via IRS Form 1099-C, the alleged balance must be updated to {$0.00}. Their continued collection efforts constitute fraud upon the court for attempting to collect on any amount above the settled amount of {$0.00}, and Wells Fargo is complicit in this fraudulent activity. 

Immediate Actions Required To resolve this matter, I am demanding the following : Immediate correction of my credit file to reflect a {$0.00} balance.

Immediate suppression and deletion of the trade-line being reported to any and all credit reporting agencies in perpetuity.

Withdrawal of any claim against me, with prejudice, regarding this settled account.

Full compliance with IRS regulations by properly reporting this charge-off per Form 1099-C requirements. 
Payment of {$15000.00} USD in damages for the 15 months of Wells Fargo 's willful erroneous, inaccurate, incomplete, false and misleading reporting.

If these demands are not met immediately, I will have no choice but to escalate this matter by : Filing IRS Form 3949-A, which will prompt an IRS investigation into Wells Fargos failure to report the charge-off in the appropriate tax year. 
Continued pursuit of legal action in New Jersey state/federal court , where an open counterclaim against Wells Fargo is currently ongoing. 
Seeking further recourse under the Fair Credit Reporting Act ( FCRA ) and consumer protection laws. 
Attached to this complaint/notice, you will find verifiable proof in the form of IRS Form 1099-C ( Copy B and Copy C ), confirming the cancellation of this debt. 

I urge Wells Fargo to immediately rectify this matter and settle it amicably and privately. If you fail to comply, I am fully prepared to pursue all legal avenues available to me.

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 explanation