Consumer complaint received 2025-07-01 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: UNITED SERVICES AUTOMOBILE ASSOCIATION
State: TX

Complaint narrative:
To Whom It May Concern, This is a formal dispute and legal demand regarding inaccurate, unverifiable, and misleading information being reported on my credit file regarding an account originally held by USAA and now allegedly claimed by XXXX XXXX XXXX. 

SUMMARY OF DISPUTE & FACTS : I contacted USAA directly to request : IRS Form 1099-C ( required for tax reporting when a debt is charged off or canceled ), The Bill of Sale, and A complete Chain of Custody/Title for any purported assignment of debt.

USAA has confirmed the following : They do not sell their charged-off debt to third parties.

They have not issued a 1099-C, and They continue to update the credit bureaus despite asserting the account is charged off and no longer active. 

At the same time, XXXX XXXX XXXX is falsely reporting this same account as a collection item with an active balance, claiming to own the debt without producing any of the legally required documents above. 

This results in double reporting of the same debtfirst as a charged-off account by USAA and then as a collection by a third party that USAA denies having sold the debt to. This is fraudulent, deceptive, and unlawful under multiple federal statutes.

APPLICABLE LAWS VIOLATED Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681e ( b ) Failure to ensure maximum possible accuracy.

15 U.S.C. 1681i Duty to conduct a reasonable reinvestigation when a dispute is submitted.

15 U.S.C. 1681s-2 ( b ) Duty of furnishers ( USAA and PRA ) to investigate and correct false information.

Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692e ( 8 ) Reporting credit information known or which should be known to be false.

15 U.S.C. 1692g Failure to provide proper validation of the debt when requested.

Internal Revenue Code 6050P Requires the filing of a 1099-C when a debt of {$600.00} or more is discharged or canceled.

Failing to report this while updating a balance as charged off constitutes tax evasion and credit misrepresentation.

Consumer Financial Protection Act ( Dodd-Frank ) Prohibits unfair, deceptive, or abusive acts or practices ( UDAAP ).

PRA and USAAs conduct misleads both consumers and credit reporting agencies.

LEGAL AND EQUITABLE DEMANDS I demand that each credit bureau conduct a full and lawful investigation into these accounts.

I demand removal of any duplicate collection accounts and update the original tradeline to reflect a {$0.00} balance or delete it entirely if the debt has been canceled or transferred without verifiable documentation.

No dispute should be marked as " verified '' unless the following documents are provided : 1099-C Bill of Sale Complete Chain of Custody Generic electronic verifications ( e-OSCAR ) do not constitute a legally valid response under the FCRA or FDCPA.

I demand a full written summary of your investigation, including copies of all documents used to verify the tradeline, sent directly to me at the address above. 

Sincerely, XXXX XXXX XXXX, TX XXXX ( XXXX ) XXXX XXXX XXXX

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