Consumer complaint received 2025-05-29 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Experian Information Solutions Inc.
State: TX

Complaint narrative:
This complaint is in regards to all credit reporting agencies and the CFPB. none are doing their due diligence to verify the legitimacy of credit complaints. Subject : Formal Complaint Against all credit reporting agencies and the CFPB for Failure to Enforce Credit Reporting Standards Regarding Securitized Charged-Off Debts To Whom It May Concern, I am writing to formally file a complaint against the Consumer Financial Protection Bureau XXXX CFPB ) for its willful negligence in protecting consumers from false and misleading credit reporting practices conducted by financial institutions, specifically in relation to charged-off and securitized debt. Background : When a creditor charges off a debt, it is acknowledging the debt as uncollectible for accounting purposes. However, what is often omitted in these transactions is the fact that many of these debts have already been securitizedsold to Special Purpose Vehicles ( SPVs ) or trustsat or near the origination of the account. Once a debt has been securitized, it is no longer owned by the original creditor. Thus, their continued reporting of such debts on a consumer report, under their name as the " owner '' of the account, is inaccurate and constitutes a violation of the Fair Credit Reporting Act ( FCRA ). Violations and Consumer Harm : False Verified Status : Creditors are routinely marking accounts as verified in response to consumer disputes, even when they no longer own or possess the debt, nor can they produce the original physical agreement. This is misleading and a material misrepresentation. Failure to Issue IRS Form XXXX : Creditors are required under federal law to issue a Form 1099-C upon cancellation of a debt. The lack of such form issuance while continuing to report a charged-off balance is a red flag that the account is not truly owned or collectible. FCRA and FDCPA Violations : Reporting a charged-off, securitized account as an asset of the creditor misrepresents the nature of the obligation. This inaccurate credit reporting can destroy a consumers ability to obtain housing, transportation, or creditthus causing long-term economic harm. Trust Law & UCC 3-305 ( Holder in Due Course Rule ) : Once the instrument ( credit agreement ) is sold into a securitized trust, the originating creditor no longer qualifies as the holder in due course and can not legally enforce the debt. Per the FTC Holder Rule and UCC 3-305, one can not assert a claim to payment if the instrument is no longer in their possession and they are not the real party in interest. CFPBs Failure : Despite numerous consumer complaints citing this exact pattern of abuse, the CFPB continues to accept the verified responses from creditors at face value, without requiring actual validation or ownership documentation. This is willful negligence. The CFPB 's inaction and failure to enforce existing protections have effectively allowed these institutions to mislead consumers, damage credit profiles, and continue abusive practices without consequence. Relief Requested : I am requesting the CFPB to : Cease accepting unverifiable " verified '' responses from furnishers without documentation proving ownership of the debt. Require furnishers to produce a chain of title or proof of ownership when responding to disputes. Mandate the issuance of IRS Form 1099-C for any debt that has been charged off and sold/securitized. Initiate enforcement actions against repeat violators of FCRA and FDCPA related to securitized charge-offs. Investigate the CFPBs own internal complaint handling system and make reforms to ensure complaints of this nature are not summarily dismissed. If the CFPB truly exists to protect consumers, this must stop!

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