Consumer complaint received 2024-07-26 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: Bread Financial Holdings, Inc.
State: NY

Complaint narrative:
Per the Privacy Act of 1974, as a federally protected consumer I am now revoking any and all authorization I, the consumer, may have given COMENITYCB/ZALES written, non-written, verbal, and nonverbal per 5 U.S. Code 552a. Per the FCRA as a federally protected consumer I am now opting out of any and all authorization I the consumer may have given you written, non-written, verbal, and nonverbal per 15 USC 6802.

15 U.S.C. 6802 ( b ) : " Opt-out '' Requirements : This section of the FCRA requires financial institutions to provide customers with an opportunity to opt out of the sharing of their information with non-affiliated third parties. ZALES did not provide me with this opportunity, nor did I give any consent for my information to be shared. ZALES has shared my personal and financial information with credit reporting agencies ( XXXX, XXXX, XXXX ) without my explicit consent, violating 15 U.S.C. 6802 ( b ). Lack of Opt-Out Opportunity : I was not given the required opportunity to opt out of having my information shared with non-affiliated third parties. 

15 U.S. Code 1681a ( 2 ) ( a ) ( i ) states that the consumer report does not include information solely as to transactions or experiences ( payment history, charge off status ), between the consumer ( myself ) and the person ( ZALES ) making the report. IT IS UNLAWFUL TO REPORT TRANSACTION HISTORY. Additionally, 15 U.S. Code 1681 s-2 ( a ) ( 1 ) ( A ) states that A person ( ZALES ) shall not furnish any information relating to a consumer ( XXXX ) to any consumer reporting agency ( XXXX, XXXX, XXXX ) if the person knows or has reasonable cause to believe that the information is inaccurate. COMENITYCB/ZALES can not collect on a discharged debt. This is now considered a certificate of indebtedness per the IRS and income can not be reported. The IRS Clearly defines a charge off as Gross or Ordinary income, INCOME DOES NOT GET REPORTED ON THE CONSUMER REPORT which in fact makes reporting of this account inaccurate. By Definition, the IRS Clearly says a Cancelled debt or charge off is Income. The reporting of this account as a debt is inaccurate. I never received a 1099-C from COMENITYCB/ZALES for the cancelled debt of { { { {$6200.00} } } } in order to file as ordinary income. Where is my 1099-C? COMENITYCB/ZALES writing off debt with the IRS without sending out 1099-C as required by the IRS for debts greater than { { { {$600.00} } } }. This is unsatisfactory!

Furthermore, When a credit balance in excess of { { { {$1.00} } } } is created on a credit account through transmittal of funds to a creditor in excess of the total balance due on an account, through amounts otherwise owed to or held for the benefit of the consumer, the creditor shall make a good faith effort to refund to the consumer by check or money order, or credit to a deposit account of the consumer, any part of the credit balance remaining in the account for more than six months, which can be mailed to address provided in this complaint. I expect to receive a response within 30 days from the date of this letter as stipulated by federal law. Thank you for your prompt attention to this matter.

Company response to consumer: Closed with non-monetary relief