Consumer complaint received 2025-01-19 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Deficiency balance after repossession
Company: Bridgecrest Acceptance Corporation
State: FL

Complaint narrative:
XX/XX/XXXX Consumer Financial Protection Bureau Re : Complaint # XXXX To Whom It May Concern : I am writing in response to Bridgecrest Acceptance Corporations recent reply regarding the deficiency balance on my account and their failure to issue a required 1099-C form. This response addresses the issues I previously raised in my complaint filed with the Consumer Financial Protection Bureau ( CFPB ). Despite receiving their communication, Bridgecrest has not fully addressed the legal violations outlined below. This will be my final request for resolution before I pursue legal action. 

1. 1099-C Issuance is Not Optional It is Required Bridgecrest has confirmed that my account was placed in charge-off status on XX/XX/XXXX. Once an account is charged off, IRC 6050P requires the creditor to issue a 1099-C form for the debt, provided the debt exceeds {$600.00} and is deemed uncollectible. 

By placing the account in charge-off status, Bridgecrest has effectively acknowledged the debt as uncollectible, triggering the obligation to issue a 1099-C. Failure to issue this form is a violation of federal tax law. It is important to note that the issuance of a 1099-C is not optionalit is a legal requirement triggered by the charge-off event. 

2. Claiming Canceled Debt as Income and Reporting it as a Deficiency Balance Bridgecrests failure to issue a 1099-C is further compounded by their continued reporting of the deficiency balance on my credit report. When an account is charged off, the remaining debt is deemed canceled for tax purposes, and the amount is considered income that was lost. 

However, Bridgecrest is still reporting the account as a deficiency balance, which constitutes a violation of both tax law and the Fair Credit Reporting Act ( FCRA ). Continuing to report a charged-off debt as a deficiency balance while failing to issue the required 1099-C misrepresents the true status of the account and creates misleading and inaccurate credit reporting. 

3. Cease and Desist on Credit Reporting I formally request that Bridgecrest immediately cease and desist from reporting the deficiency balance as a continuing liability on my credit report. Under the FCRA, all information furnished to credit bureaus must be accurate and not misleading. Reporting a charged-off account as an outstanding balance while failing to issue a 1099-C is illegal and a violation of the FCRA. 

4. Legal and Regulatory Consequences Bridgecrests failure to comply with its obligations under IRC 6050P and the FCRA exposes them to potential penalties and regulatory enforcement. These include : IRS Penalties : For failing to issue the 1099-C as required by tax law. 
FCRA Violations : For continuing to report inaccurate and incomplete information to credit bureaus. 
Legal Action : I will take further legal steps to ensure compliance and seek damages for violations. 
Final Request for Immediate Action This is my final request for resolution. I demand that Bridgecrest take the following actions immediately : 1.Issue a 1099-C form as required by IRC 6050P, reflecting the cancellation of the debt due to the charge-off event. 
2.Cease and desist from reporting the deficiency balance to credit reporting agencies, ensuring that the charge-off is accurately reflected. 
3.Provide a detailed explanation of how the sale proceeds were applied and the current status of the remaining balance, including whether it is legally enforceable. 

Failure to adequately address these issues will result in legal action and further escalation to the IRS, FTC, and CFPB. 

Thank you for your attention to this matter. Please contact me at [ your contact information ] for any further communication. 

Sincerely, XXXX XXXX XXXX

Company response to consumer: Closed with explanation