Consumer complaint received 2025-07-06 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: MEI AUTO FINANCE INC
State: TX

Complaint narrative:
I co-signed an auto loan back in XXXX for my son 's mother. The car broke down three weeks after purchase with a completely broken transmission. I offered to pay half of the repair of {$2500.00} to have the transmission replaced if they cover the other half they refused. Last payment activity on this account was XX/XX/XXXX. I voluntarily surrender the vehicle back to the car lot because it was not running. The account was charged off the company took tax write offs and submitted a 1099C under my name to the IRS in the amount of {$10000.00} the same amount submitted on the 1099C. The account was charged off in XXXX with 1099C submission. Since then, the company has XXXX  out balance and quit reporting miss payments or any other information on XXXX and XXXX XXXX however, on XXXX  a company called MFC located at XXXX XXXX XXXX XXXX, XXXX XXXX XXXX with the phone number XXXX has repeatedly over the past 7 to 9 months reopened my account with XXXX  and falsely reports missed payments on a closed charged off account with 1099C submission they also increase the amount owed from XXXX dollars to {$10000.00}. Every month they change the status of this trade line for no other reason than harassment. Collection activity is supposed to cease once the 1099C has been submitted and I carry the burden of an IRS debt MFC causes irreparable damage to my credit history causing massive fluctuation in my credit score causing hundred point dips in my credit score month after month. I have to call XXXX  monthly to dispute this information that is being falsely reported as a means of harassment and collection attempts, basically saying that if I want it to stop to pay the debt of {$10000.00}! All other trade lines on XXXX XXXX and XXXX  have no new activity being reported! This company has repeatedly refused to stop causing irreparable damage to my credit history and every time I dispute the information monthly that they submit they have to fix it and every time I dispute it is corrected for exactly 30 days until they do it again! Again when I spoke to the compliance officer at this company, MFC I was told if I wanted it to stop I would have to pay the {$10000.00} to get them to stop damaging my credit! This is pure harassment and collection attempts by a company who has already taken tax credits on the loss of the vehicle and the nearly {$2800.00} down that was put on the vehicle at the time of purchase! XXXX  agrees that this form of activity is nothing more than a shakedown for a collection of {$10000.00} so they will stop damaging my credit history with XXXX! This activity did not begin until I wrote a letter to the company asking for a compassionate removal of the trade line due to the fact I was looking for a new job and needed a clean and healthy credit report! I have no collections on any of my credit reporting agency account. This is the only blemish on my credit they refused and ever since then they have began harassing me with this activity and trying to shake me down for an amount of money that they have charged off submitted the 1099C and taking Tax brakes covering their losses! The outcome I would like to see by this complaint is for this trade line to be completely removed or for the company to be instructed to not make any more changes to this already closed account and charge it off account since XXXX! They are a shady car dealership and I'm sure this is a tactic they use to get even more money out of people to get them to stop harassing them by means of destroying their credit history.

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