Consumer complaint received 2026-02-05 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: DigniFi
State: MD

Complaint narrative:
I am asking the CFPB to please help me exercise my consumer rights and intervene and closely monitor this complaint. XXXX actions appear to violate the FCRA and FDCPA, and their response provides no evidence of a lawful basis to continue reporting this account. I respectfully request that the CFPB require corrective action and full deletion of this tradeline. 

Rebuttal to XXXX  Response XXXX XXXX I formally reject XXXX response as incomplete, misleading, and non-compliant with the Fair Credit Reporting Act ( FCRA ). 

Dignifi admits in their own response that : The account was charged off The account was sold to XXXX XXXX They no longer own the debt They no longer service the debt They no longer have any collection rights Despite these admissions, XXXX continues to furnish a derogatory tradeline on my consumer credit report. This continued reporting is improper, misleading, and harmful. 
Admissions made in complaints Previous Dispute XXXX XXXX XXXX XXXX XXXX XXXXXXXX Once Dignifi sold and transferred all rights, servicing and agreements to this account, they no longer have any legal or financial interest in the debt. Under the FCRA, a furnisher must have a permissible purpose to continue reporting information to consumer reporting agencies. 

Because XXXX  : Does not own the account Does not service the account Does not collect on the account Has transferred all rights to another entity they no longer have any permissible purpose to continue furnishing derogatory information. Continuing to report an account they no longer own serves no legitimate business need and is improper under federal law. 

Dignifi is making false and misleading representations regarding the legal status of a debt by continuing to report a derogatory account on my credit report Although Dignifi claims they are reporting historical information, federal law requires that information be not only technically correct but also not misleading. 

Their continued reporting creates the false and misleading impression that : Dignifi is still involved with the account Dignifi still has legal authority over the debt The account remains an active derogatory obligation with Dignifi This is materially misleading to lenders, creditors, and credit scoring systems. 

Federal courts have held that information can be considered inaccurate under the FCRA if it is materially misleading, even if some portion is technically correct. XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. 2008 ) ). 

Therefore, XXXX continued furnishing of this account violates 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ), which requires that all information furnished be accurate and not misleading.

Under 15 U.S.C. 1681s-2 ( b ), once a consumer disputes information, the furnisher is legally required to conduct a reasonable investigation and correct any inaccurate or misleading information. 

XXXX response provides no evidence that any true investigation occurred. 

They have failed to provide : Documentation of the charge-off Proof of the date of sale Proof of the reporting history Copies of any investigative records Proof of compliance with XXXX XXXX reporting standards A generic statement that no violations were found does not satisfy the legal requirement of a reasonable investigation under the FCRA. 

This same alleged debt is currently being reported by multiple companies, including : XXXX  XXXX XXXX This results in multiple derogatory tradelines for the exact same debt, which unfairly multiplies the negative impact on my credit profile. 

Once an account is sold, proper industry standards require the prior creditor to cease derogatory reporting. Only the current owner of the debt has a legitimate basis to report an active derogatory account. 

Allowing Dignifi to continue reporting after the sale creates unfair, misleading, and duplicative harm, which is prohibited under the FCRA. 

XXXX XXXX XXXX reporting standards require that once an account is sold : The balance must be reported as {$0.00} The account must be marked as sold/transferred No further derogatory activity should be reported by the prior creditor Maintaining a fully derogatory tradeline after the sale is inconsistent with proper credit reporting practices and constitutes misleading furnishing. 

Dignifi has acknowledged they no longer own this account and have no ongoing rights. Continuing to report a derogatory tradeline under these circumstances is misleading, unnecessary, and unlawful. I am requesting only what federal law requires : that XXXX  stop reporting an account they no longer own. 

XXXX improper reporting has directly caused : XXXX credit scores Difficulty obtaining credit Financial hardship Emotional distress Wasted time disputing inaccurate information Their actions provide no benefit to any creditor and serve only to punish and harm me as a consumer. 

Once the account was sold and all rights were transferred to XXXX XXXX, Dignifi became a stranger to the alleged debt. A company with no ownership interest, no collection rights, and no contractual relationship with the consumer has no lawful basis to continue furnishing derogatory credit information. The FCRA does not permit indefinite reporting by a former creditor simply because they once owned an account. Their only proper action after the sale was to cease reporting entirely.

Company response to consumer: Closed with explanation