Consumer complaint received 2025-04-29 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: CarMax, Inc.
State: GA

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX, Ga XXXX XXXX XX/XX/year> Consumer Financial Protection Bureau XXXX. XXXX XXXX Washington XXXX DC XXXX Subject : Urgent Request for Investigation and Enforcement Failure to Issue 1099-C for Charged-Off Account CarMax Auto Finance Dear CFPB Officer, I am writing to request immediate investigation and enforcement action against CarMax Auto Finance regarding their failure to issue an IRS Form 1099-C ( Cancellation of Debt ) for a charged-off account they are currently reporting on my credit file ( [ Account Number : __________ ] ).

The debt has been charged off and reported to credit reporting agencies. Under 26 U.S.C. 6050P and 26 CFR 1.6050P-1, when a financial institution discharges {$600.00} or more of indebtedness, they are required to file Form 1099-C with the IRS and provide a copy to the debtor no later than XX/XX/XXXX of the following year. The charge-off, combined with the absence of collection efforts, reasonably indicates that a discharge of indebtedness has occurred. 

Despite multiple requests, CarMax Auto Finance has failed to issue the required 1099-C form. This omission : Violates Internal Revenue Code 6050P and 26 CFR 1.6050P-1 ( Information reporting requirements ).

Constitutes unfair and deceptive practices under the Fair Debt Collection Practices Act ( FDCPA ) 15 U.S.C. 1692e by misrepresenting the legal status of the debt.

Potentially violates the Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 1681s-2 ( a ) for inaccurate and incomplete credit reporting.

Due to these violations, I am evaluating the pursuit of statutory damages in federal court, as allowed under the FDCPA and FCRA, each providing for actual and statutory damages up to {$1000.00} per violation, along with attorneys fees and costs ( 15 U.S.C. 1692k and 15 U.S.C. 1681n respectively ).

This noncompliance materially affects my rights, including my tax reporting obligations and my ability to manage my credit profile. I request that the CFPB open an investigation into CarMax Auto Finances practices and compel them to either : Issue the required 1099-C form if the debt has indeed been canceled, OR Cease and correct any inaccurate reporting if the debt remains legally collectible.

I am attaching copies of my credit report, communications with CarMax Auto Finance, and supporting documentation for your review.

Thank you for your prompt attention to this matter. I respectfully request a full investigation and appropriate regulatory action. 

Sincerely, XXXX XXXX Laws Referenced in the Letter : 26 U.S.C. 6050P IRS requirement to report debt cancellation.


26 CFR 1.6050P-1 Details conditions under which 1099-C must be issued. 15 U.S.C. 1692e ( FDCPA ) Prohibits deceptive debt collection practices. 15 U.S.C. 1681s-2 ( a ) ( FCRA ) Requires accurate reporting by creditors. 15 U.S.C. 1692k ( FDCPA Damages ) Provides for statutory damages.

15 U.S.C. 1681n ( FCRA Damages ) Provides for statutory damages.

Company response to consumer: Closed with explanation