Consumer complaint received 2025-10-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: PENTAGON FEDERAL CREDIT UNION
State: TX

Complaint narrative:
b'1. Background and Account History\nIn XXXX XXXX, Pentagon Federal Credit Union (PenFed) sold my credit account ending XXXX to Security Credit Services, as confirmed in PenFeds letter dated XXXX XXXX XXXX. This establishes that PenFed no longer owns or services the account.\nDespite the sale, PenFed continues to report the account to Experian and other credit reporting agencies as charged off with a balance owed, which is both factually and legally inaccurate.\nThis has resulted in dual reporting  PenFed reporting a charge-off and Security Credit Services reporting the same account as purchased  creating a false appearance of multiple defaults and damaging my credit profile.\n\n2. Violations of the Fair Credit Reporting Act (FCRA)\nUnder FCRA 623(a)(1)(A), a furnisher shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate.\nOnce PenFed sold the account, it ceased to have any ownership or collection authority, and therefore cannot lawfully report a current balance or charge-off status.\n\nAfter receiving my certified dispute on XXXX XXXX XXXX (XXXX XXXX XXXX XXXX XXXX XXXX XXXX), PenFed responded on XXXX XXXX XXXX stating:\n\nWe are unable to comply with your request to make a courtesy adjustment on your credit report.\nWe are obligated under Section 623 of the Fair Credit Reporting Act to report accurate information.\n\nThis response acknowledges both the dispute and the sale yet refuses correction or deletion. Continuing to report a charged-off account already sold constitutes a knowing violation of 623(a) and failure to perform a reasonable investigation under 623(b).\n\n3. Violations by the Credit Reporting Agencies\nUnder FCRA 611(a)(1)(A), credit reporting agencies must reinvestigate within 30 days and correct or delete any information that is inaccurate, incomplete, or unverifiable.\nSince PenFed no longer owns the account, its tradeline is unverifiable and must be removed. The continued presence of both PenFed and Security Credit Services tradelines is misleading and harms credit accuracy.\n\n4. Harm and Consequences\nThis dual reporting has reduced my credit score, impaired my ability to qualify for credit for more than a year, and caused reputational and financial harm. The conflicting data undermines the accuracy and reliability of my consumer report in violation of the FCRA.\n\n5. Compliance and Good-Faith Efforts\nI fully complied with the dispute procedures under the FCRA, providing documentation and proof of sale. PenFeds written refusal to amend or delete the tradeline fails the reasonable investigation standard required under 623(b)(1)(A).\n\nI am not disputing the existence of the original debt, only PenFeds continued reporting of an account it no longer owns or services.'

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation