Consumer complaint received 2025-06-22 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Happy Money, Inc.
State: PA

Complaint narrative:
Consumer Financial Protection Bureau XXXX. XXXX XXXX XXXX  XXXX DC XXXX Date : XX/XX/XXXX Subject : Formal Complaint False Reporting and Inaccurate Account Data by Happy Money To Whom It May Concern, I am filing this formal complaint against Happy Money, which continues to furnish false, inaccurate, and misleading information to XXXX, XXXX, and XXXX  in violation of multiple provisions of the Fair Credit Reporting Act ( FCRA ) and IRS reporting regulations.

This account, which was charged off and transferred, still appears as active, derogatory, and factually misleading across all three credit bureaus. The inconsistencies and outdated data are not only negligent but intentionally harmful. 

Inaccurate Account Details : Creditor : Happy Money Account Type : Installment / Unsecured Loan Account Opened : XX/XX/XXXX Reported Balance : {$0.00} ( across all bureaus ) Status : Collection/Charge-Off High Credit : {$18000.00} ( XXXX/XXXX  ), {$14000.00} ( XXXX  ) Monthly Payment : {$0.00} Date Last Active / Last Payment : Discrepancies across bureaus Last Reported : XXXX  ( XX/XX/XXXX ), XXXX  XXXX XX/XX/XXXX ), XXXX  ( XX/XX/XXXX ) Comments : XXXX to another lender, Charged off as bad debt, Unpaid balance reported as loss, Account sold or transferred Specific Inaccuracies & Legal Violations : False Reporting of Derogatory Status : Despite being transferred and reporting a {$0.00} balance, the account continues to show as derogatory. This is misleading and violates FCRA 1681e ( b ), which requires maximum possible accuracy.

Contradictory Reporting Dates and Remarks : Each credit bureau lists inconsistent dates, statuses, and high credit figures, which confirms that no unified, verified data is being furnished. This reflects a violation of FCRA 1681s-2 ( b ).

Failure to Update Account Status as Closed or Resolved : If the account has been sold or transfe
rred, Happy Money should no longer b

e furnishing active derogatory data. Continued reporting violates FCRA 1681i ( a ) failure to correct errors after notice of dispute.

No IRS 1099-C Issued : Despite a charge-off of over {$600.00}, Happy Money has failed to issue a 1099-C as required under 26 U.S. Code 6050P. This either confirms that the debt is no longer collectible or has been canceled yet its still being used to penalize my creditworthiness.

Stale Data That Is Overdue for Deletion or Correction : The most recent activity occurred as early as XX/XX/XXXX, yet the account is still reported as current derogatory despite being inactive, charged off, and sold. This violates the data furnisher obligations under FCRA 1681c and 1681i ( a ) ( 5 ) ( A ).

Damages Ive Incurred : I have been denied mortgage financing due to this false reporting I have experienced XXXX XXXX, XXXX, and XXXX from prolonged credit rejections I have lost hundreds of dollars disputing this account through certified mail, legal consultations, and credit services I have spent countless hours contacting Happy Money and the bureaus with no correction or deletion provided Requested CFPB Action : I am asking the CFPB to : Investigate Happy Moneys continued and inconsistent reporting of this account, despite it being closed and transferred Require immediate deletion of this account from all three credit bureaus under Happy Moneys name Co

nfirm whether a 1099-C was issued, and take regulatory action if not Hold Happy Money accountable for willful noncompliance and negligent furnishing of inaccurate data Ensure I receive a corrected credit report and formal notification of the removal This account has long been settled, charged off, and transferred. Its continued presence on my credit report as an active derogatory trade line is both legally indefensible and intentionally harmful. I demand immediate CFPB action to restore my rights and financial integrity.

Sincerely, [ Your Full Name ] [ Your Address ] [ Your Phone Number ] [ Your Email Address ] Let me know if you'd like this in PDF format with the screenshot attached, or if you want a multi-complaint file for all lenders ( XXXX  + Happy Money ).

You said : Please add statue of limitations in PA XXXX said : Here is your final, aggressive CFPB complaint letter against Happy Money, now including the Pennsylvania statute of limitations for debt ( 4 years for written contracts and most unsecured loans ), which strengthens your demand for deletion since this account has aged past the legal window for collection or legal enforcement : Consumer Financial Protection Bureau XXXX. XXXX XXXX XXXX  XXXX DC XXXX Date : XX/XX/XXXX Subject : Formal Complaint Illegal and Inaccurate Continued Reporting by Happy Money Account Charged Off, Transferred, and Beyond Statute of Limitations ( PA ) To Whom It May Concern, I am filing this formal complaint regarding Happy Money for its continued reporting of inaccurate, outdated, and derogatory information on my credit reports across XXXX XXXX XXXX XXXX. This installment account has been charged off, sold/transferred, carries a {$0.00} balance, and is now past the legal statute of limitations for collection under Pennsylvania law yet Happy Money continues to furnish it as active derogatory data in violation of federal law. 

Account Details : Creditor : Happy Money Type : Installment Unsecured Loan Account Opened : XX/XX/XXXX Balance : {$0.00} Payment Status : Collection/Charge-Off Last Activity : XX/XX/XXXX ( last payment ) Last Reported : XXXX  ( XX/XX/XXXX ), XXXX  ( XX/XX/XXXX ), XXXX  ( XX/XX/XXXX ) Remarks : Transferred to another lender, Charged off as bad debt, Unpaid balance reported as a loss Legal Violations : Despite the fact that this account has been inactive since XXXX, Happy Money continues to report it as a derogatory, open collection account, violating several provisions of the Fair Credit Reporting Act ( FCRA ) and federal tax reporting laws.

Violations include : 15 U.S.C. 1681e ( b ) : Failure to ensure maximum possible accuracy 15 U.S.C. 1681i : Failure to correct disputed information and delete outdated data 15 U.S.C. 1681s-2 ( b ) : Furnishing of inaccurate data after receiving dispute notification 15 U.S.C. 1681c ( a ) ( 4 ) : Continued reporting of outdated adverse information 26 U.S. Code 6050P : No 1099-C has been issued despite the account being charged off, which violates IRS cancellation of debt requirements Statute of Limitations Pennsylvania Under Pennsylvania law , the statute of limitations for written contracts and unsecured debt is four ( 4 ) years [ 42 Pa. C.S. 5525 ( a ) ( 8 ) ]. 
This account became inactive as of XX/XX/XXXX, and therefore will be time-barred for any collection or legal action after XX/XX/XXXX. Continuing to report it as actively derogatory and furnishing it to credit bureaus with conflicting data is not only misleading, but likely a deceptive collection tactic under both state and federal law. 

Damages Ive Incurred : Repeated mortgage denials based on this false derogatory data Significant XXXX  and XXXX XXXX Out-of-pocket expenses for postage, credit monitoring, and legal support Time lost repeatedly disputing with bureaus and Happy Money without resolution Credit defamation and financial hardship due to continued reporting of invalid data Action Requested : I request the CFPB to : Investigate Happy Moneys inaccurate and unlawful furnishing of outdated data Require permanent deletion of this account from all three credit bureaus under Happy Moneys name Confirm whether a 1099-C was ever filed for this canceled debt, and take appropriate regulatory action if not Enforce penalties for violation of FCRA, IRS reporting rules, and Pennsylvania consumer protection laws Ensure I receive written confirmation and updated credit reports reflecting the accounts removal I have exhausted all other avenues of resolution. Happy Moneys continued reporting is in bad faith, clearly outside the statute of limitations, and in direct conflict with FCRA mandates. I am requesting immediate action. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation