Consumer complaint received 2025-02-20 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: CAPITAL ONE FINANCIAL CORPORATION
State: IL

Complaint narrative:
XXXX Capital One Auto Finance Attn : Correspondence XXXX XXXX XXXX XXXX, TX XXXX Subject : Demand for Issuance of XXXX, Deletion from Credit Bureaus XXXX and Cease & Desist of Reporting Dear Capital One Auto Finance, I am writing to formally demand that you issue a 1099-C Cancellation of Debt for the following repossessed auto loan account, as required under 26 U.S. Code 6050P. Additionally, I demand the immediate deletion of this account from all credit bureaus and a Cease & Desist order to stop reporting this account to any credit reporting agencies. 

Account Information : Account Number : XXXX Account Type : Auto Loan Date Opened : XX/XX/XXXX Status : Repossession. {$14000.00} past due as of XX/XX/XXXX. 

Status Updated : XX/XX/XXXX XXXX : {$21000.00} It has come to my attention that you are reporting a past-due balance on a written-off, closed account. This is a violation of federal law and misrepresents the true status of the account. Under 15 U.S. Code 1681s-2 ( a ) ( 1 ) ( A ), furnishers of credit information are prohibited from reporting information that they know or should know is inaccurate. Additionally, continuing to report a past-due balance on a charged-off account constitutes unfair and deceptive practices under the Fair Debt Collection Practices Act ( FDCPA ) ( 15 U.S. Code 1692e ) .

According to 26 U.S. Code 6050P, a creditor must issue a 1099-C Cancellation of Debt form when a debt of {$600.00} or more has been discharged. As this account has been written off and no further collection activity has occurred, the obligation for you to report the cancellation to the IRS and issue a 1099-C is mandatory. Once this occurs, the balance should be reclassified as income, and continued reporting of an outstanding debt is unlawful.

Furthermore, under 15 U.S. Code 1681b, you must have a permissible purpose to report information to the credit bureaus. Since this debt has been reclassified as income and effectively discharged, there is no longer any permissible purpose for continued reporting. Your failure to comply with this law may result in legal action against your institution.

Cease and Desist Demand : Under 15 U.S. Code 1681n and 1681o, I hereby demand that you : Issue a 1099-C Cancellation of Debt for the outstanding balance and provide a copy of the form for my records.

Immediately delete this account from all credit bureaus.

Cease and desist from reporting this account as a delinquent debt.

If you fail to remove this information and issue a 1099-C within 30 days of receipt of this letter, I will proceed with filing formal complaints with the following regulatory agencies : Consumer Financial Protection Bureau ( CFPB ) Federal Trade Commission ( FTC ) State Attorney Generals Office Additionally, I will pursue legal remedies for willful non-compliance and violations of federal law, including seeking statutory damages and attorneys fees.

Please provide written confirmation that this account has been deleted from all credit bureaus, that you have ceased all further reporting, and that a 1099-C has been issued and filed with the IRS.

Failure to comply will result in immediate legal action. 

Sincerely, XXXX XXXX XXXX XXXX

Company response to consumer: Closed with explanation