Consumer complaint received 2025-02-05 00:00:00
Product: Debt collection — Auto debt
Issue: Took or threatened to take negative or legal action — Threatened or suggested your credit would be damaged
Company: Consumer Portfolio Services, Inc.
State: NJ

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, NJ XXXX XXXX XXXX Date : XX/XX/XXXX Subject : Formal Dispute and Request for Deletion of Charge-Off Account To Whom It May Concern, I am writing to formally dispute the reporting of a charge-off account listed on my credit report. This account, furnished by Consumer Portfolio Services Inc, is being reported inaccurately and must be removed in accordance with the Fair Credit Reporting Act ( FCRA ) and other applicable laws. 

Account Information : Creditor Name : Consumer Portfolio Services Inc. 
Account Number : XXXX Charge-Off Date : XX/XX/XXXX Amount : {$22000.00} FCRA Violation & Failure to Issue IRS Form 1099-C Under the Fair Credit Reporting Act ( 15 U.S.C. 1681s-2 ( a ) ), data furnishers are required to report only accurate and verifiable information. However, in this case, the creditor has failed to comply with IRS regulations regarding debt cancellation reporting, which directly impacts the accuracy and legality of this tradelines continued presence on my credit report. 

According to IRS regulations ( 26 U.S.C. 6050P ), a financial institution must issue a 1099-C if a debt of {$600.00} or more has been canceled, discharged, or forgiven. The failure to issue this form raises questions about the validity of the charge-off itself. If the creditor considers the debt uncollectible and charged off, and no 1099-C was issued, then the reporting of this account as an outstanding delinquent debt is inaccurate and misleading. 

Request for Removal Given these inconsistencies, I am requesting the immediate deletion of this charge-off account from my credit report. Per the FCRA : 15 U.S.C. 1681i ( a ) ( 1 ) ( A ) : You are required to investigate disputed information within 30 days and remove inaccurate or unverifiable accounts.

15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) : Data furnishers must correct or delete inaccurate or incomplete information.

15 U.S.C. 1681e ( b ) : Credit bureaus must ensure the maximum possible accuracy of reported information.

Since the creditors failure to issue a 1099-C brings the validity of this debt into question, continued reporting of this account violates my consumer rights. 

Supporting Documents Enclosed, I have included copies of the following : Drivers License and Social Security Card Next Steps & Response Deadline Please conduct an immediate investigation and provide written confirmation of the deletion of this account from my credit file within 30 days, as required by law. If the information is not removed, I request documentation proving the creditors compliance with IRS 1099-C regulations and verification that this debt is legally reportable. 

Failure to comply with this request will result in further action, including complaints with other regulatory authorities and potential legal recourse. 

I appreciate your prompt attention to this matter and expect a written response by XX/XX/XXXX. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation