Consumer complaint received 2025-01-07 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: CAPITAL ONE FINANCIAL CORPORATION
State: IL

Complaint narrative:
CFPB Complaint : XXXX XXXX XXXX, XXXX, Capital One, and XXXX Complainant : XXXX XXXX Date : XX/XX/year> Summary of Complaint : This complaint addresses multiple legal violations committed by XXXX XXXX XXXX, XXXX ( XXXX ), Capital One, and XXXX. XXXX XXXX has failed to validate the debt despite multiple formal requests and continues to pursue collection without proper validation. Capital One has illegally sold a charged-off debt to PRA without issuing a 1099-C form for cancellation of debt income, which is required by IRS regulations. Furthermore, XXXX continues to report inaccurate and disputed information despite no validation of the debt by XXXX. 

Violations by XXXX XXXX XXXX, XXXX ( XXXX ) : XXXX. Failure to Validate the Debt ( FDCPA Violation - 15 U.S.C. 1692g ) : XXXX did not provide any legitimate documentation or proof to validate the alleged debt after receiving a formal debt validation request. 
XXXX did not provide a copy of the original signed contract between the consumer and Capital One to substantiate the debt.

2. Continuing Collection Activity Without Validation ( FDCPA Violation - 15 U.S.C. 1692g ( b ) ) : PRA continued to report the account to credit bureaus and attempted to collect on the debt without responding to the debt validation request.

3. Misrepresentation of Debt Ownership ( FDCPA Violation - 15 U.S.C. 1692e ) : PRA falsely represented its legal right to collect on the debt without proving it had the proper assignment or legal standing to do so.

PRA failed to provide any documentation from Capital One to substantiate that the debt was legally transferred.

4. Failure to Provide Proof of Licensing in Illinois : PRA failed to show it is licensed to collect debts in the State of Illinois, violating state debt collection laws.

Violations by Capital One : 1. Failure to Issue a 1099-C Form for Cancellation of Debt Income : Capital One sold a charged-off debt to PRA, yet failed to issue a 1099-C form to the consumer for cancellation of debt income.

This is a violation of IRS regulations. According to the IRS Form 3439-A, creditors must report canceled debts over {$600.00} to the IRS and provide the debtor with a 1099-C form.

2. Improper Transfer of Debt to a Third-Party Debt Buyer : Capital One improperly transferred the alleged debt to PRA without informing the consumer of the legal implications, in violation of the Truth in Lending Act ( TILA ). 

Violations by XXXX : 1. Failure to Conduct a Reasonable Investigation ( FCRA Violation - 15 U.S.C. 1681i ) : Despite receiving multiple disputes regarding the validity of the XXXX account, XXXX failed to conduct a proper investigation to verify the accuracy of the information. 
XXXX. Reporting Inaccurate Information ( FCRA Violation - 15 U.S.C. 1681e ( b ) ) : XXXX continues to report the XXXX XXXX XXXX account, even though the debt has not been validated by XXXX. 
XXXX. Failure to Mark the Account as Disputed ( FCRA Violation - 15 U.S.C. 1681s-2 ( a ) ( XXXX ) ) : XXXX failed to properly flag the XXXX account as disputed, as required by the FCRA.

Company response to consumer: Closed with non-monetary relief