Consumer complaint received 2025-01-26 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: EQUIFAX, INC.
State: NY

Complaint narrative:
I am filing this formal dispute regarding several accounts inaccurately reported on my credit reports by the creditors listed below. This dispute involves charge-offs, potential violations of the Fair Credit Reporting Act ( FCRA ), and failure to comply with Internal Revenue Service ( IRS ) regulations concerning Form 1099-C. 

Disputed Accounts : XXXX. XXXX XXXX XXXX XXXX Account Number : XXXX Status : Charge-Off Balance : {$1600.00} Issue : Status updated to XX/XX/XXXX, which constitutes possible re-aging. Additionally, I have not received IRS Form 1099-C, required when a charge-off is considered taxable income if the debt exceeds {$600.00}. 
XXXX. XXXX XXXX  Account Number : XXXX Status : Charge-Off Balance : {$1300.00} Issue : Status updated to XX/XX/XXXX, reflecting re-aging. No IRS Form 1099-C or proper notification of debt cancellation has been provided. 
XXXX. XXXX XXXX XXXX. 
Account Number : XXXX Status : Charge-Off Balance : {$100.00} Issue : No Form 1099-C has been received. Incorrect reporting continues despite this account being closed. 
XXXX. XXXX XXXX XXXX Account Number : XXXX Status : Charge-Off Balance : {$2100.00} Issue : Status updated to XX/XX/XXXX, with no 1099-C or documentation of cancellation. 

Violations : 1. Failure to Issue IRS Form 1099-C : According to IRS regulations ( 26 U.S.C. 6050P ), creditors are required to issue a Form 1099-C for debts of {$600.00} or more when charged off, as these are considered canceled debts and taxable income. The absence of such documentation suggests noncompliance.

2. Re-Aging of Accounts : Updating charge-off statuses to later dates without proper justification constitutes re-aging and violates FCRA 605 ( c ). This unlawfully extends the reporting period and misrepresents the nature of the debt.

3. Failure to Notify of Debt Cancellation : As per FCRA 623 ( a ) ( 7 ), creditors are required to provide written notification when adverse action is taken, including reporting a debt as charged off or canceled. No such notifications have been received.

4. Inaccurate Reporting of Charge-Offs : Reporting charge-offs as active obligations without proper documentation violates FCRA 623 ( a ), which mandates accuracy in credit reporting.

IRS Implications : As the debts in question have been reported as charge-offs, they may constitute cancellation of debt ( COD ) income under IRS guidelines . However, none of the creditors listed above have issued IRS Form 1099-C to document the cancellation of these debts. This omission leaves me unable to accurately file my taxes, further complicating the matter.

I am in the process of filing complaints with the Internal Revenue Service ( IRS ) and Federal Trade Commission ( FTC ) regarding these discrepancies. If these errors are not promptly corrected, I will escalate this matter further with the CFPB, IRS, and my states Attorney General. 

Please consider this letter as a formal dispute, and I trust the CFPB will ensure compliance from the creditors and reporting agencies involved.

Company response to consumer: Closed with non-monetary relief