Consumer complaint received 2025-06-07 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: CAPITAL ONE FINANCIAL CORPORATION
State: TX

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX The XXXX, TX XXXX XX/XX/XXXX Capital One P.O. XXXX XXXX XXXX XXXX XXXX, UT XXXX Re : Account Ending in XXXX Case Number : XXXX To Whom It May Concern, This letter is an UPDATED response to your correspondence dated XX/XX/XXXX, regarding the above-referenced account. 

Let me be clear : the practice of continuing to report a charged-off account that has likely been securitized, and simultaneously refusing to issue a 1099-C, raises serious legal and regulatory concerns. Your letter confirms the account was charged off as of XX/XX/XXXX, yet you acknowledge the balance is still owedwhile providing no substantiating documentation that Capital One is the true owner or holder in due course of this alleged obligation. 

Violations and Material Omissions Failure to Issue Form 1099-C You state no 1099-C was issued due to the account not being interest bearing. That rationale is non-responsive. A Form 1099-C is required when a debt is canceled or charged off and is no longer being pursued for collection. Per the Internal Revenue Code

6050P, a creditor must issue a 1099-C upon discharging or canceling a debt of {$600.00} or more. If you have legally written off this account, and no longer intend to collect it, a 1099-C is mandatorynot optional. If, however, the debt was securitized, then Capital One can not claim it is owed anything at all.

Truth in Lending Act ( TILA ) Violations 15 U.S.C. 1666 ( a ) - ( d ) Prior to this account being charged off, Capital One failed to comply with its obligations under 15 U.S.C. 1666 ( a ) ( b ) ( c ) ( d ), which governs the resolution of billing errors. Upon receiving any written notice of dispute, a creditor is required to acknowledge the dispute within 30 days, investigate, and correct or explain the matter within two billing cycles ( but not more than 90 days ). Capital One failed to follow these procedures, thereby violating the statutory protections afforded to consumers under the Truth in Lending Act. Your failure to properly investigate, respond, or correct disputed charges prior to charging off the account renders the charge-off itself defective and subject to reversal.

Fair Credit Reporting Act ( FCRA ) & Misrepresentation Under the FCRA, creditors must ensure all information furnished to consumer reporting agencies is complete and accurate. Continuing to report a charged-off debt, which may have been sold, securitized, or otherwise disposed of, is misleading and potentially unlawful if you no longer own the debt or can not verify the chain of title. The assertion that the balance is still owed while failing to verify actual legal ownership or possession of the underlying instrument is a material misrepresentation under the FCRA and FDCPA. 

Truth-in-Lending & Trust Indenture Act Violations If the underlying agreement was securitizedcommon industry practiceCapital One is no longer the real party in interest. You are therefore precluded from enforcing collection or reporting the account as an asset on consumer reports. The Trust Indenture Act of 1939, coupled with the FTC Holder Rule and UCC 3-305, makes it unlawful for an entity that has sold or assigned its interest to continue asserting creditor rights. 

Unjust Enrichment and Double Entry Accounting You can not simultaneously benefit from a charge-off for tax or accounting purposes, potentially sell the obligation through securitization, and also represent to the public that the balance remains collectible. This constitutes unjust enrichment and may rise to the level of constructive fraud.

Demand for Immediate Action Accordingly, I demand the following : Immediate removal of the account from all consumer reporting agencies on the basis of unverifiable ownership and outdated reporting.

A complete accounting and chain of title for the account, including whether it was sold, assigned, or securitized, and the name of the current holder in due course.

An explanation of why Capital One failed to issue a 1099-C if the account was charged off over five years ago.

A formal retraction of any verified status that has been used in response to consumer reporting disputes without furnishing documentary proof of ownership. 

Should you fail to comply within 15 business days, I will proceed to escalate this matter through formal complaint channels, including Office of the Comptroller of the Currency ( OCC ), Federal Trade Commission ( FTC ), and relevant state attorney general offices, along with initiating legal proceedings for willful noncompliance, economic damages, and statutory penalties under federal law. 

I reserve all rights and remedies, without limitation. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation