Consumer complaint received 2025-01-17 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Investigation took more than 30 days
Company: CarMax, Inc.
State: PA

Complaint narrative:
I am submitting this formal complaint against CARMAX AUTO FINANCE for its failure to respond to my lawful requests for documentation, its continued reporting of inaccurate information, and its possible violation of federal and state regulations. CARMAX AUTO FINANCE refusal to comply with these obligations undermines the accuracy and integrity of credit reporting systems and exposes me to undue harm. Factual Background : On XX/XX/year>, I disputed the accuracy of CARMAX AUTO FINANCE reporting of a charge-off on my credit report. As part of this dispute, I specifically requested the following documentation : Verification of the debt, including the original agreement and complete payment history. The Employer Identification Number ( EIN ) of CARMAX AUTO FINANCE. Form 1099-C if the alleged charge-off is classified as income under IRS guidelines. An explanation detailing the date, amount, and justification for the charge-off. Despite providing CARMAX AUTO FINANCE with the legally mandated 30 days to respond to my request, they have failed to supply any documentation or evidence to substantiate their claims. Violations : Noncompliance with the Fair Credit Reporting Act ( FCRA ) : CARMAX AUTO FINANCE failure to verify and validate the debt violates the provisions of the FCRA, which obligate furnishers to investigate disputes thoroughly and respond within the prescribed timeline. Reporting a charge-off without supporting evidence undermines my right to accurate and fair credit reporting. Knowingly Reporting Inaccurate Information : If the account was not actually charged off, CARMAX AUTO FINANCE act of knowingly misrepresenting the account status constitutes a willful violation of the FCRA. Such conduct not only damages my creditworthiness but also demonstrates a reckless disregard for the law. Potential Violations of Tax Law : The IRS defines a charge-off as a cancellation of debt, which may constitute taxable income. If CARMAX AUTO FINANCE claims to have charged off this debt, they are obligated to issue a Form 1099-C and provide their EIN for tax reporting purposes. By failing to provide this documentation, CARMAX AUTO FINANCE has created uncertainty regarding my tax obligations and exposed me to potential legal and financial consequences. Violation of Pennsylvania Fair Credit Extension Uniformity Act ( FCEUA ) : Under the FCEUA, creditors are prohibited from engaging in unfair or deceptive practices in the collection or reporting of debts. CARMAX AUTO FINANCE failure to validate the debt and continued reporting of unsubstantiated information constitute such practices. Harm Caused : CARMAX AUTO FINANCEs actions have directly harmed me by : Lowering my credit score and affecting my ability to obtain credit on fair terms. Causing emotional distress and financial uncertainty. Potentially exposing me to tax liabilities without adequate documentation to address them. Requested Relief : Immediate Removal of the Charge-Off : CARMAX AUTO FINANCE must immediately cease reporting the charge-off and remove the inaccurate entry from my credit report. Provision of Requested Documentation : Verification of the debt, including all supporting documentation. A copy of Form 1099-C and CARMAX AUTO FINANCE EIN for tax reporting purposes, if applicable. Full Investigation by the CFPB : I request that the CFPB investigate CARMAX AUTO FINANCE practices and impose any necessary corrective actions or penalties to ensure compliance with applicable laws.

Company response to consumer: Closed with explanation