Consumer complaint received 2025-03-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: EQUIFAX, INC.
State: TX

Complaint narrative:
Texas Department of Banking XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX Email : XXXX Subject : XXXX XXXX XXXX XXXX XXXX Services and Equifax for Fraudulent Debt Collection, Willful Misreporting, and Potential Tax Fraud To Whom It May Concern, I am filing a formal complaint against XXXX XXXX XXXX XXXX XXXX XXXX and Equifax for unlawful debt collection practices, willful misreporting of my credit information, and potential tax fraud. Despite HDFS issuing a 1099-C Cancellation of Debt for my account in XXXX, both XXXX  and Equifax have continued to falsely report the debt as outstanding, causing severe financial harm. 

Details of the Complaint : XXXX XXXX XXXX XXXX XXXX ) : 1. Issued a 1099-C to the IRS in XXXX, legally canceling my debt of {$5700.00}.

2. Despite this, XXXX has continued to report the debt as outstanding to credit bureaus, contradicting their own financial reporting to the IRS.

3. XXXX provided me with a letter confirming that my balance should be reported as XXXX as of XX/XX/XXXX, yet they have not ensured compliance with this correction.

4. Attempting to collect a debt that was reported as canceled to the IRS raises serious concerns about potential tax fraud, as XXXX can not legally pursue collection on a canceled debt. 

Equifax : 1. I formally disputed the false debt with Equifax, providing both : A copy of the 1099-C Cancellation of Debt issued by XXXX  A letter from XXXX  confirming that the debt should reflect a zero balance 2. Despite receiving clear proof that the debt was canceled, Equifax continues to report the debt as outstanding.

3. As a result of Equifaxs willful misreporting, my credit score dropped by XXXX points on XX/XX/XXXX, directly harming my financial standing.

4. Equifaxs refusal to correct this inaccurate reporting constitutes reckless disregard of federal and state consumer protection laws, violating the Fair Credit Reporting Act ( FCRA ) and the XXXX XXXX XXXX. 

Violations Committed by XXXX XXXX Equifax : XXXX issued a 1099-C while continuing to pursue collection, which may constitute fraudulent financial reporting and a violation of IRS regulations .

Equifax knowingly misreported my credit information despite receiving indisputable proof of debt cancellation, violating FCRA provisions under 15 U.S.C. 1681i. 
Both parties actions have caused significant financial harm, including damage to my creditworthiness and emotional distress. 

Notification to the IRS : Due to XXXX  fraudulent actions, I am formally reporting HDFS to the Internal Revenue Service ( IRS ) for potential tax fraud. If a debt is truly canceled, XXXX can not legally attempt to collect it or report it as due. Their failure to adhere to this regulation may constitute misrepresentation to the IRS, and I will be submitting IRS Form 3949-A along with supporting documents.

Requested Resolution : 1. Immediate investigation into XXXX and Equifax for fraudulent financial practices, willful misreporting, and tax fraud concerns.

2. Immediate correction of my credit report to reflect the zero balance as required by the 1099-C and XXXX  own records.

3. Enforcement action against XXXX and Equifax, including fines and penalties, for engaging in deceptive financial practices and violating consumer protection laws. 

I request a prompt response and resolution to this matter. Please confirm receipt of this complaint and inform me of the next steps in the investigation. If additional documentation is required, I am happy to provide it.

Company response to consumer: Closed with non-monetary relief