Consumer complaint received 2025-02-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Experian Information Solutions Inc.
State: NV

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XX/XX/year> Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXX XXXX XXXX Subject : Formal Complaint Against Experian for Failure to Investigate and Comply with Federal Laws Regarding Charged-Off Debt and 1099-C Reporting Dear CFPB, I am writing to formally file a complaint against Experian for their failure to investigate and comply with federal laws regarding charged-off debt and the reporting of Form 1099-C, as required by the Internal Revenue Service ( IRS ). Experians actions, or lack thereof, are causing significant harm to my credit profile and are in violation of established laws and regulations.

1. Failure to Comply with IRS Regulations on Charged-Off Debt and 1099-C Reporting According to the IRS, when a creditor discharges a debt of {$600.00} or more, they are required to issue a Form 1099-C to the debtor, as this discharged debt is considered taxable income. The IRS explicitly states : If a debt is canceled, forgiven, or discharged for less than the full amount owed, the amount of the canceled debt is generally taxable income to you.

( Source : IRS Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments, available at www.irs.gov ) Once a debt is charged off and a 1099-C is issued, the debt is considered income and should no longer be reported as a collectible debt. However, Experian continues to report these charged-off accounts on my credit report, which is inaccurate and misleading.

2. Experians Policy on Income Reporting Experians own policies state that income is not reported on credit reports. If a charged-off debt is considered income under IRS regulations , it should not be reported as a debt on my credit report. By continuing to report these charged-off accounts, Experian is violating their own policies and misrepresenting my financial standing.

3. Demand for Removal of Charged-Off Accounts I demand that Experian immediately remove all charged-off accounts from my credit report, as these debts have been discharged and are now considered income under IRS regulations. Their continued reporting of these accounts is inaccurate, misleading, and in violation of federal law.

4. Legal Action if Compliance is Not Met If Experian fails to investigate and remove these charged-off accounts from my credit report, I will have no choice but to pursue legal action against them for their failure to comply with federal laws and their continued harm to my credit profile. 

I request that the CFPB investigate this matter and ensure that Experian complies with all applicable laws and regulations. Please provide me with updates on the status of this complaint and any actions taken. 

Thank you for your attention to this matter. 

Sincerely, XXXX XXXX Last 4 of SSN : XXXX

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