Consumer complaint received 2025-02-01 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: SANTANDER HOLDINGS USA, INC.
State: FL

Complaint narrative:
Subject : Formal Demand for Issuance of IRS Form 1099-C Pursuant to Federal Law To Whom It May Concern, I am writing regarding the unresolved and inaccurate debt reflected under XXXX  XXXX ***** in your records. As the original creditor, you have failed to take proper action regarding this debt and, by doing so, have violated several federal laws and regulations. This letter serves as a formal demand for you to issue an IRS Form 1099-C, as mandated by federal law, or to provide written clarification as to why this has not been done. 
Under federal regulations, including the Internal Revenue Code ( IRC ) and the Fair Debt Collection Practices Act ( FDCPA ), creditors are required to adhere to specific guidelines in reporting debts, especially those deemed uncollectible. Your failure to provide proper documentation or relief violates multiple legal obligations, outlined below. 
Legal Violations and Basis for My Demand : XXXX. 26 U.S.C. 6050P Reporting of Canceled DebtThe Internal Revenue Code mandates that creditors who cancel {$600.00} or more in debt must file a Form 1099-C with the IRS and provide a copy to the debtor. If you have ceased collection activities or consider this debt uncollectible, you are legally required to issue a 1099-C to me. 
XXXX. 12 C.F.R. 1002.9 Adverse Action NotificationUnder the Equal Credit Opportunity Act ( ECOA ), creditors must provide consumers with clear and timely notifications regarding adverse actions taken on their accounts. Your failure to formally notify me of your determination regarding this account constitutes a breach of this regulation. 
XXXX. FCRA 623 ( 15 U.S.C. 1681s-2 ) Duty to Report Accurate InformationAs a data furnisher, you are legally obligated to ensure the accuracy of information reported to credit bureaus. If this debt has been forgiven or deemed uncollectible, your failure to update this information is a violation of the Fair Credit Reporting Act. 
XXXX. FDCPA 807 ( 15 U.S.C. 1692e ) False or Misleading RepresentationsContinued reporting or collection attempts on a debt that has been canceled or should be canceled is a deceptive practice. If this debt no longer exists, your actions may constitute a direct violation of the FDCPA. 
XXXX. 26 C.F.R. 1.6050P-1 Discharge of Indebtedness Reporting RequirementsThis regulation clarifies your obligation to file a Form 1099-C upon the occurrence of an identifiable event, including a decision to stop collection efforts. If such an event has occurred, your failure to report this cancellation is unlawful. 
My Demands : XXXX. Immediate Issuance of Form 1099-C : If this debt has been forgiven, deemed uncollectible, or otherwise canceled, you must issue the required IRS Form 1099-C within XXXX  days of receipt of this letter. 
XXXX. Updated Reporting to Credit Bureaus : If the debt has been canceled, you are required to immediately update the status of this account with all major credit reporting agencies ( XXXX, XXXX, and XXXX ) to reflect a XXXX balance and indicate it as canceled. 
XXXX. Written Confirmation of Account Status : If you dispute my claim, you must provide written documentation, including proof of continued ownership of the debt and validation of your right to collect it. Failure to provide sufficient evidence will be interpreted as an acknowledgment of cancellation. 
Consequences for Noncompliance : Failure to comply with these legal obligations will leave me no choice but to pursue all available remedies, including filing complaints with the IRS, the Consumer Financial Protection Bureau ( CFPB ), and the Federal Trade Commission ( FTC ). Additionally, I am prepared to seek legal action for violations of federal law, including but not limited to the FCRA and FDCPA. 
This is your final opportunity to resolve this matter without further escalation. I expect a response to this demand, along with the issuance of a 1099-C or proper documentation, within XXXX  days. 
Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation