Consumer complaint received 2024-10-22 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: TRANSUNION INTERMEDIATE HOLDINGS, INC.
State: MI

Complaint narrative:
Dear CFPB, I am writing to formally dispute Auto Club Trust, FSB ( ACT ) continued reporting of a charge-off on my credit report. This is more than a simple reporting issueit reflects a disturbing pattern of double-dipping and potential fraud designed to manipulate both consumer reporting agencies and the U.S. tax system. 

ACT has classified this alleged debt as a charge-off, which should signify its closure and removal from my credit report. Yet, they persist in reporting the account, benefiting from it in multiple ways. It is clear they are attempting to exploit the system by claiming the charge-off as a tax deduction, while simultaneously inflicting harm on my credit profile. This contradiction not only raises ethical concerns but also puts them in direct violation of the Fair Credit Reporting Act ( 15 U.S.C. 1681 ), which mandates accurate reporting.

Let me also make this abundantly clear : I have a legal right to privacy under these laws. ACT 's failure to verify and remove this alleged debt is a violation of my consumer rights, and I am entitled to {$1000.00} per violation under the FCRA. These violations continue to accumulate each day this illegitimate charge-off remains on my credit report. 

ACTs actions represent a deliberate attempt to double-dip by simultaneously taking advantage of the tax benefits from a bad debt deduction under 26 U.S. Code 166 ( Bad debts ) while profiting off the damage caused to my credit. This kind of conduct could very well constitute tax fraud, and I fully intend to bring this matter to the attention of the IRS if it is not resolved immediately. 

I demand the following : Full documentation of the procedures ACT has followed in verifying this alleged debt and their basis for continuing to report it as a charge-off. This includes every step of their process, the employees involved, the internal communications, and the exact e-signature procedures used to verify this account. I want to know who signed off on this, down to the managers managers, their lunch breaks, and the step-by-step actions taken to ensure accuracy. 

Proof that ACT has not claimed this debt as a tax write-off while continuing to report it to the credit bureaus. If ACT is attempting to benefit both waysby claiming the account as a loss while still using it to harm my creditthis is a clear case of tax evasion, and I will report it to the IRS for further investigation.

Immediate removal of this charge-off from all credit reporting agencies. The continued reporting of this account as a charge-off, while ACT derives other benefits from it, is a blatant violation of the Fair Debt Collection Practices Act ( 15 U.S.C. 1692 ). If not removed promptly, I will pursue further legal action under the FCRA, FDCPA, and any applicable state laws.

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 non-monetary relief