Consumer complaint received 2025-03-07 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: TRUIST FINANCIAL CORPORATION
State: NC

Complaint narrative:
XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/XXXX Truist Bank XXXX XXXX XXXX XXXX XXXX XXXXXXXX RE : Account Number : XXXX To Whom It May Concern : I am writing regarding the above-referenced account that has been written off as a bad debt. According to my XXXX credit report dated XX/XX/XXXX, this account is listed as " Charged off as bad debt '' with a comment of " Profit and loss writeoff. '' This indicates that your institution has XXXX this debt of {$15000.00} and deemed it uncollectible.

Under Internal Revenue Service ( IRS ) regulations, specifically 26 CFR 1.6050P-1, financial institutions are required to issue Form 1099-C, " Cancellation of Debt, '' when a debt of {$600.00} or more is canceled or forgiven. This form must be provided to both the debtor and the IRS by XX/XX/XXXX of the year following the calendar year in which the debt was XXXX. 

Furthermore, I am requesting information regarding whether this debt was securitized, sold to investors as an asset-backed security, or included in any mortgage-backed security or collateralized debt obligation. If this debt was securitized or sold as part of a pool of assets to investors, it may have already been fully or partially compensated through credit default swaps, insurance, or other financial instruments. In such cases, the discharge of this debt may represent a " double recovery '' situation if you have already received compensation through securitization proceeds, insurance, or related financial mechanisms. This information is critical for determining the accuracy of your tax reporting and the legitimacy of continuing to report negative information on my credit report. 

To date, I have not received a Form 1099-C for this discharged debt. Since this information is necessary for me to properly prepare my tax returns and comply with IRS requirements, I am formally requesting that you : 1. Provide me with a copy of the Form 1099-C that should have been issued for this account, or 2. Issue a Form 1099-C if one has not yet been prepared, documenting the canceled debt amount and the date of cancellation XXXX. Provide documentation showing whether this debt was securitized, sold as part of an asset-backed security, or otherwise transferred into a trust or special purpose vehicle. This should include the name of any trust or entity that holds or held beneficial interest in this debt, the date of any such transfer, and whether any insurance, credit default swaps, or other financial instruments were used to mitigate losses related to this account.

4. If this debt was securitized, provide an accounting of any payments, insurance proceeds, or other compensation received in relation to the charged-off amount, as these would affect the actual amount of debt that was legitimately canceled.

Additionally, I am requesting that you update my credit report accordingly. Under the Fair Credit Reporting Act ( FCRA ) and Consumer Financial Protection Bureau ( CFPB ) guidelines, once a debt has been discharged and a 1099-C has been issued, the account should be reported as " paid '' or " settled '' rather than as an ongoing collection or charge-off. The current reporting is inaccurate and harmful to my credit profile, as it suggests an ongoing obligation that has legally been satisfied through the discharge.

My requests regarding securitization documentation are supported by established case law, including *XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX ( XXXX ), which held that transfers that violate XXXX and XXXX XXXX terms are void, not merely voidable. The XXXX  Supreme Court further confirmed in XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ), that borrowers have standing to challenge void assignments in the chain of title. Additionally, in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX. XXXX ), the court established that proper verification of a debt requires providing documentation of the debt 's ownership history, particularly relevant when securitization has occurred. Regarding the issuance of XXXX XXXX, XXXX re XXXX, XXXX B.R. XXXX ( XXXX. XXXX XXXX. XXXX ) established that a creditor who has received the benefit of discharge of indebtedness by reporting it as income to the IRS may be estopped from subsequently claiming the debt was not discharged. These legal precedents support both my right to request securitization documentation and your obligation to provide it.

Please send the requested 1099-C documentation to my address listed above and confirm in writing that you have taken steps to correct the credit reporting within 30 days of receipt of this letter. If you believe that a Form 1099-C is not required in this situation, please provide a written explanation detailing the specific reasons and the relevant exemption under IRS regulations XXXX 

I appreciate your prompt attention to this matter. Proper documentation of this canceled debt and accurate credit reporting are important for both my tax compliance and your institution 's regulatory compliance obligations. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX : Consumer Financial Protection Bureau XXXX Credit Bureau

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