Consumer complaint received 2025-01-19 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: EXCEL FINANCE COMPANY
State: TX

Complaint narrative:
Dear CFPB Representative, I am writing to request an urgent investigation into multiple companies listed on my XXXX credit report, which appear to be engaging in fraudulent practices. Specifically, these companies have reported accounts as charged off as bad debt on my credit report but have failed to issue IRS XXXX XXXX for the canceled debt, as required under federal law for debts exceeding {$600.00}. Additionally, these actions may constitute violations of 15 U.S.C. 1692g, and 18 U.S.C. 1028A. 

The companies in question, as listed on my XXXX credit report, include but are not limited to : Excel Finance XXXX Loan MoneyLion Key Issues : Failure to Issue IRS Form XXXX : These companies have written off debts as charged off or as profit and loss write-offs in their books but have not issued XXXX forms to me, nor reported these cancellations to the IRS. This failure to meet federal reporting obligations creates a misleading representation of their financial activities and raises concerns of potential tax fraud. 

Violations of 15 U.S.C. 1692g : Under the Fair Debt Collection Practices Act ( FDCPA ), consumers are entitled to proper validation of debts. These companies have failed to provide the required validation and verification of the debts they report. Their lack of compliance leaves me with unverifiable and likely inaccurate accounts on my credit report.

Potential Violation of 18 U.S.C. 1028A ( Aggravated Identity Theft ) : Reporting inaccurate or fraudulent information and failing to issue proper documentation, such as 1099-C forms, undermines my ability to verify these debts. This could be construed as an abuse of personal information or even identity theft under federal law. Their actions have inflicted harm on my financial standing and exposed me to potential legal and tax consequences.

I have also filed IRS Form 3949-A to report these companies for suspected tax fraud and abuse related to their failure to issue 1099-C forms for canceled debts. However, I believe the CFPBs intervention is necessary to address their broader practices of noncompliance and potential fraud.

Requested Actions : Investigate these companies failure to comply with the requirements of 15 U.S.C. 1692g and other federal laws, including their obligations under the Fair Credit Reporting Act ( FCRA ).

Investigate the potential tax fraud stemming from their failure to issue IRS Form 1099-C for debts they have canceled.

Hold these companies accountable for the harm caused to consumers and take appropriate enforcement actions. 
I have attached a copy of my XXXX credit report and additional documentation for your review. I am available to provide further details or evidence as needed. 

Thank you for your attention to this matter. I trust the CFPB will take the necessary steps to protect consumers and ensure these companies comply with federal laws.

Company response to consumer: Closed with explanation