Consumer complaint received 2026-01-24 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Deficiency balance after repossession
Company: Consumer Portfolio Services, Inc.
State: CA

Complaint narrative:
RE : FORMAL LEGAL DEMAND UNLAWFUL AND INACCURATE CHARGE-OFF REPORTING CREDITOR : XXXX XXXX XXXX | ACCOUNT NO. XXXX To Whom It May Concern, This letter constitutes a formal dispute, legal notice, and demand for immediate deletion pursuant to the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq., applicable legislative authority, and controlling federal case law.

You are currently reporting the following tradeline on my consumer credit file : Creditor : XXXX XXXX XXXX Account Status : Charge-Off Remarks : Profit and Loss Write-Off Reported Balance / Amount Past Due : {$19000.00} Payment History : No history available Months Reviewed : XXXX Last Activity : XX/XX/XXXX This reporting is legally inaccurate, materially misleading, and statutorily impermissible. 
I. LEGAL DEFECT : A CHARGE-OFF WITH A CONTINUING BALANCE IS NOT MAXIMALLY ACCURATE A charge-off designated as a profit and loss write-off is, by definition, an accounting determination that the creditor has written the debt off as a loss. Continuing to report a past-due balance after such a write-off creates a false representation of legal liability. 
Federal courts have repeatedly held that credit reporting must reflect legal reality, not internal accounting fiction. 
15 U.S.C. 1681e ( b ) requires consumer reporting agencies to follow reasonable procedures to assure maximum possible accuracy. 
Reporting a written-off debt as both charged off and past due is internally contradictory and materially misleading, even if the numeric amount is disputed. 
See XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  ( XXXX XXXX. XXXX ) ( information that is technically correct but misleading is actionable under the FCRA ). 
XXXX. XXXX XXXX VIOLATIONS INCOMPLETE AND UNVERIFIABLE DATA Under the XXXX XXXX XXXX Credit Reporting Standards, a tradeline must contain complete historical data, including : Date of First Delinquency ( DOFD ) Payment rating history Months reviewed Accurate balance status consistent with account condition This tradeline reports : XXXX months reviewed No payment history No delinquency timeline A balance inconsistent with a profit-and-loss write-off XXXX XXXX rules are clear : if data can not be verified as complete and accurate, it must be deleted, not updated. 
XXXX. FAILURE OF REASONABLE REINVESTIGATION Once placed on notice of dispute, a credit bureau may not simply rely on automated furnisher confirmation. 
XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX XXXX ) A CRA must conduct an independent and reasonable reinvestigation. 
XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) Continued reporting of disputed, unverified debt violates 1681i. 
Here, the absence of any payment history or months reviewed proves verification is impossible. 

IV. CONSTITUTIONAL DUE PROCESS VIOLATIONS Credit reputation is a protected liberty and property interest under the Fifth and Fourteenth Amendments. 
By continuing to publish factually defective adverse credit data, you are facilitating a deprivation of property ( credit access, pricing, housing, employment opportunities ) without due process of law. 
See : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) V. FORMAL DEMAND Accordingly, I hereby demand that XXXX, XXXX and XXXX : XXXX. IMMEDIATELY DELETE the XXXX XXXX XXXX tradeline in its entirety XXXX. Cease reporting any balance, past-due amount, or adverse status associated with this account XXXX. Provide written confirmation of deletion within XXXX calendar days of receipt of this notice If you fail to comply, I will proceed without further notice to : File complaints with the Consumer Financial Protection Bureau ( CFPB ) and Federal Trade Commission ( FTC ) Refer this matter to the State Attorney General Initiate civil litigation seeking statutory damages, actual damages, punitive damages, and attorneys fees under 15 U.S.C. 1681n and 1681o This letter serves as formal notice. Continued reporting after receipt constitutes willful noncompliance. 
All rights are expressly reserved. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation