Consumer complaint received 2025-01-11 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: NISSAN MOTOR ACCEPTANCE COMPANY LLC
State: FL

Complaint narrative:
Dear CFPB, I am writing to formally file a complaint against Nissan Motor Acceptance ( hereinafter referred to as " the Creditor '' ) for failing to provide me with an IRS Form 1099-C, despite the legal requirement to do so after a charge-off occurred on my account. This omission is causing significant financial and legal concerns for me, and I request your assistance in resolving this matter.

Background Information : 1. Account Information : The account in question was held with NISSAN MOTOR ACCEPTANCE and was subsequently charged off on or about XX/XX/XXXX. 
2. Legal Obligation : Under IRS guidelines, creditors are required to issue a Form 1099-C to borrowers when a debt of {$600.00} or more is forgiven or discharged, as outlined in 26 U.S. Code 6050P. This requirement ensures that consumers can accurately report the cancellation of debt as taxable income. Once a Form 1099-C is issued, the debt is no longer considered enforceable, as it has been forgiven or discharged and reclassified as income under federal tax laws.

Reporting such a discharged debt on my consumer report as outstanding, delinquent, or collectible is false, erroneous, and misleading. The continued reporting of a discharged debt violates the Fair Credit Reporting Act ( FCRA ), 15 U.S. Code 1681s-2 ( a ), which prohibits the reporting of inaccurate information to consumer reporting agencies. Furthermore, creditors and credit reporting agencies are required to ensure the maximum possible accuracy of the information reported under 15 U.S. Code 1681e ( b ).

Case law supports the principle that once a debt is discharged and a Form 1099-C is issued, the debt is effectively extinguished. In XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX the court ruled that a 1099-C reflects the cancellation of debt and serves as evidence that the debt is no longer enforceable. Similarly, in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, the court highlighted the importance of creditors and credit reporting agencies updating their records to ensure the accurate reflection of debt status. 
Therefore, the reporting of this discharged debt as valid or collectible on my consumer report is not only inaccurate but also violates federal statutes and established legal precedents. I am requesting that this erroneous information be deleted from my consumer report IMMEDIATELY to comply with the applicable laws and ensure the accuracy of my credit file. 
Failure to address this matter promptly may result in legal action to enforce my rights under the Fair Credit Reporting Act and other applicable laws. I trust this matter will be resolved swiftly and appropriately. 
Nature of the Complaint : Despite repeated requests and inquiries, NISSAN MOTOR ACCEPTANCE has failed to provide me with the required IRS Form 1099-C for the charged-off account. The absence of this document not only prevents me from fulfilling my tax obligations but also leaves me vulnerable to potential penalties or audits by the IRS. 
Additionally, the lack of transparency from the Creditor in this matter has caused unnecessary stress and confusion regarding my financial responsibilities. 

Actions Taken : I have made the following attempts to resolve this issue : 1. Contacted Creditor Directly : On XXXX XXXX, I reached out to NISSAN MOTOR ACCEPTANCE via certified letter and requested the Truth in Lending Disclosures pursuant 15 USC 1635 ( a ). Despite my efforts, I have yet to receive a satisfactory response or the document itself. 
2. Follow-Up Attempt : On XXXX XXXX I made additional follow-up attempts, but the Creditor has continued to ignore my requests or has provided inadequate explanations. 

Requested Resolution : I am requesting the CFPB to : 1. Investigate NISSAN MOTOR ACCEPTANCEs failure to comply with IRS requirements for issuing Form 1099-C.

2. Hold NISSAN MOTOR ACCEPTANCE accountable for this omission and compel them to provide the required documentation immediately.

3. Ensure that proper penalties are applied if it is found that NISSAN MOTOR ACCEPTANCE has acted negligently or in bad faith.

The timely receipt of the Form 1099-C is crucial for me to comply with my tax obligations and to have accurate records regarding the resolution of this account. I believe this failure to provide essential documentation reflects a breach of consumer protection standards and warrants immediate attention.

Company response to consumer: Closed with explanation