Consumer complaint received 2025-04-16 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc.
State: PA

Complaint narrative:
Grounds for Dispute : XXXX. Inaccurate and Incomplete Reporting Violation of FCRA 1681e ( b ) The FCRA mandates that credit reporting agencies must ensure maximum possible accuracy of the information reported. The account in question has been listed as a charge-off without proper supporting documentation or verification from the original creditor. Additionally, I was never issued a 1099-C ( Cancellation of Debt form ), which is required by the IRS when XXXX creditor cancels a debt of {$600.00} or more. 
2. Charge-Offs as Canceled Debt Constituting Income Not Subject to Credit Reporting According to IRS Publication 4681 and 26 U.S. Code 61 ( a ) ( 12 ), once a debt is canceled, it may be considered taxable income to the consumer. If a creditor writes off the debt and does not intend to collect, it is required to issue a 1099-C. Once this happens, the debt is no longer a liabilityit is income. However, income can not be reported on a credit report as debt, as it no longer represents a financial obligation.

Therefore, without issuance of a 1099-C and proper notification, the continued reporting of this charge-off as a derogatory debt is misleading, incomplete, and potentially a form of double jeopardyboth taxing and penalizing the consumer for the same item. 
3. Failure to Notify Violation of IRS & FCRA Requirements The Internal Revenue Code requires that a 1099-C form be sent to both the IRS and the debtor. I never received such documentation. This failure to comply with tax law and reporting requirements means that the validity of this charge-off is seriously in question, and it should be removed from my credit file under the FCRA due to inaccurate reporting.

4. Unverified or Obsolete Account FCRA 611 ( a ) ( 5 ) I request an immediate investigation into this item. If the creditor can not verify the charge-off with complete and accurate documentation, it must be deleted. If verification is not completed within XXXX  days, the item must be removed, per FCRA 611 ( a ) ( 1 ) ( A ).

Formal Request : Under FCRA 611, I request the following actions : A full reinvestigation of the charge-off account listed above and non bias investigation ( must show proof of non bias investigation, listing who was interviewed ) Written verification of the validity and legal basis of the reported item Update to paid as agreed if my credit report if verification can not be provided ( due to inaccuracy it is ground for deletion but may drop my score ) A copy of any documentation used to verify the accuracy of the account Please consider this letter a formal dispute under the FCRA. If the item is not removed or updated accurately, I will file a complaint with the Federal Trade Commission ( FTC ), and consider legal remedies under the FCRA and other applicable consumer protection laws.

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