Consumer complaint received 2024-09-16 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: Experian Information Solutions Inc.
State: AL

Complaint narrative:
Dear CFPB, I am writing to dispute the accuracy of XXXX charge-off entries on my credit report, as required under 15 USC 1681 ( e ) ( B ) of the Fair Credit Reporting Act ( FCRA ). The following accounts are listed as charged off : XXXX. XXXX XXXXXXXX XXXX Reported on XX/XX/XXXX, in the amount of {$2200.00} XXXX. XXXX XXXXXXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX, in the amount of {$2200.00} XXXX. XXXXXXXX XXXX XXXX  Reported on XX/XX/XXXX, in the amount of {$3000.00} The respective lenders have written off these accounts. The lenders have determined that they will not pursue collection of these debts and have classified them as canceled or forgiven. My tax records will reflect this status through a 1099-C form, indicating that these debts have been officially forgiven and are considered resolved. 

These accounts were charged off, but should not be reported as derogatory items. The lenders have acknowledged that they will not collect the debt and have classified it as canceled or forgiven. This means that the debts will be reported to the IRS as discharged, and I have received three 1099-C forms for tax purposes as proof. Consequently, the debt is considered canceled or forgiven and has been reported as income on my taxes. 

Since canceled or forgiven debt is reported as income and not as a derogatory mark on a credit report, having these accounts listed as charge-offs is incorrect. These listings inaccurately affect my credit profile and should be updated to reflect that the debts have been resolved or forgiven. 

Including this information on my credit report as derogatory violates the FCRA, which mandates that credit reports must not include income or tax-related data. Therefore, reporting these forgiven debts as charge-offs not only misrepresents their status, but also constitutes an inaccurate and unlawful entry on my credit report. 

According to the FCRA, credit reports must accurately reflect a consumers credit history and should not include income or tax-related information. Since these debts are no longer collectible and has been reported as canceled on my tax records, they should not be listed as charge-offs or derogatory items on my credit report. Reporting them in this manner violates the FCRA and inaccurately affects my credit profile. As such, since these debts are canceled or forgiven and has been reported to the IRS as discharged, they should not appear as derogatory items on my credit report. Reporting these debts as charged off is incorrect and misleading. I request that these entries be corrected or removed from my credit report to reflect their status as written off and forgiven accurately. Enclosed are copies of the relevant documentation, including the 1099-C forms or other proof of debt discharge.

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