Consumer complaint received 2025-10-24 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Bread Financial Holdings, Inc.
State: DE

Complaint narrative:
I am formally disputing your continued reporting and representation of the below-referenced account XXXX as a charge-off while simultaneously treating it as an active, collectible debt. 

Once an account is charged-off, it is legally and financially recognized as uncollectible and written off your companys books. This status has legal implications that can not be undone by creative accounting or data furnishing. Specifically : Your company has reported to the federal government that the account is no longer collectible. 

You may have received tax deductions or credits under the Internal Revenue Code ( IRC ) for claiming the loss. 

The account ceases to be an asset once written off, meaning continued representation of ownership or collectible value is false and misleading. 

Under Generally Accepted Accounting Principles ( GAAP ) and federal law, a charged-off debt can not simultaneously be a collectible asset. Attempting to treat it as both constitutes a misrepresentation of financial position and an abuse of federal tax procedure. 

By continuing to report, sell, or attempt to collect on this debt after charging it off, your company may be engaging in conduct that violates multiple federal statutes, including : XXXX. 15 U.S.C. 1692e Fair Debt Collection Practices Act ( FDCPA ) : Prohibits false or misleading representations concerning the character, amount, or legal status of any debt. 
XXXX. 15 U.S.C. 1681s-2 Fair Credit Reporting Act ( FCRA ) : Requires furnishers to report only complete and accurate information. 
XXXX. 26 U.S.C. 7206 ( 1 ) : Makes it a federal offense to willfully make and subscribe to any return, statement, or document verified under penalty of perjury that one does not believe to be true and correct as to every material matter which may apply if your company misreports written-off accounts for tax benefit while also claiming them as collectible. 
XXXX. 18 U.S.C. 1341 and 1343 Mail and Wire Fraud : Prohibit schemes to defraud through the use of interstate communications, which can include the misrepresentation of charged-off debts for financial gain. 
XXXX. 26 U.S.C. 6050P : Requires reporting of any canceled or discharged debt to the IRS through issuance of a Form XXXX to the debtor. Failure to do so while continuing collection efforts may constitute a willful attempt to obscure the tax status of the alleged debt. 

Misrepresenting a charged-off account as collectible is not only a violation of consumer law it is potentially trust fraud and tax fraud. It undermines the integrity of financial reporting and effectively transfers your tax burden onto the consumer. 

Therefore, I am requesting the following actions be taken immediately : XXXX. Cease and desist from all collection activity, reporting, or sale of this charged-off account. 
XXXX. Provide written verification and documentation showing whether a Form XXXX was filed with the IRS in accordance with 26 U.S.C. 6050P. 
XXXX. Correct or delete any inaccurate or misleading information furnished to the credit reporting agencies. 

Provide a written response confirming your compliance within XXXX  days as required by law. 

Be advised : Continued misrepresentation or concealment of the true status of this account will result in immediate escalation to the Federal Trade Commission ( FTC ), Internal Revenue Service ( IRS ), and the State Attorney Generals Office for investigation into potential tax, trust, and consumer law violations.

Company response to consumer: Closed with non-monetary relief