Consumer complaint received 2024-12-19 00:00:00
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: First Technology Federal Credit Union
State: CA

Complaint narrative:
Subject : Formal Complaint Against First Tech Federal Credit Union for Breaching Contract and Illegal Disclosure of Personal Information Dear XXXX, I am filing a formal complaint against First Tech Federal Credit Union ( First Tech ) regarding their unlawful actions related to my auto loan for a 2020 XXXX XXXX XXXX. The issues I am experiencing include the illegal sale of my personal information to XXXX  parties, the improper closure of my account, and the unjust marking of the account as a charge-off. These actions violate my consumer rights, breach our contract, and may constitute multiple legal infractions under both federal and state law. 

XXXX. Illegal Sale of Personal Information to a XXXX Party First Tech Federal Credit Union has unlawfully sold my personal information, including sensitive financial details related to my auto loan, to an unauthorized third party. This disclosure of my personal data was not consented to by me, nor was I informed of any third-party disclosures at any point in time. This action is a clear violation of the Gramm-Leach-Bliley Act ( GLBA ), which protects consumers from unauthorized sharing of personal financial information. 

Relevant Legal Provision : Gramm-Leach-Bliley Act ( 15 U.S.C. 6801-6809 ) Under this law, financial institutions are prohibited from disclosing nonpublic personal information about consumers to third parties without the consumer 's explicit consent. 
Penalty : A violation of the GLBA can result in civil penalties of up to {$100000.00} for each violation, with additional penalties for willful violations. 
XXXX. Improper Account Closure and Charge-Off After the disclosure of my personal information, First Tech closed my auto loan account without prior notice or explanation. The account was also marked as a charge-off on my credit report, despite my timely payments up until that point. A charge-off typically occurs when an account is deemed unlikely to be collected, which is not applicable in my case as I have always been responsible for my payments. This improper marking has negatively impacted my credit score and financial standing.

Relevant Legal Provisions : Fair Credit Reporting Act ( FCRA ) ( 15 U.S.C. 1681 et seq. ) Under the FCRA, financial institutions must report accurate and complete information to credit bureaus. If an account is closed or marked as charged off in error, it can be considered a violation of the FCRA.

Penalty : Violations of the FCRA may result in damages, including actual damages, statutory damages of {$100.00} to {$1000.00} per violation, and possible punitive damages. Additionally, the institution may be required to pay attorney 's fees and court costs. 
Contract Breach and Unfair Trade Practices First Techs actions also constitute a breach of the contract governing my auto loan. The sudden closure of the account and negative reporting without justification violates the terms and conditions agreed upon in the contract. This may also fall under unfair trade practices as defined in the Unfair and Deceptive Acts and Practices ( XXXX ) statutes. 
XXXX. Request for Resolution I request the following actions to be taken immediately : An investigation into the unauthorized disclosure of my personal information and the imposition of penalties as stipulated under the GLBA. 
The removal of the charge-off from my credit report and an accurate reflection of my account status. 
A full explanation and accounting of my loan account and any XXXX-party disclosures. 
Corrective action to ensure that my personal information is no longer disclosed to unauthorized third parties. 
I also request that you provide me with a copy of the investigation results and any corrective measures that First Tech Federal Credit Union intends to take. 

Thank you for your attention to this matter. I trust the Consumer Financial Protection Bureau will investigate these serious violations and take the necessary steps to protect consumers from such practices. Should you require any further information or documentation, I am happy to provide it.

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