Consumer complaint received 2026-04-22 00:00:00
Product: Student loan — Private student loan
Issue: Dealing with your lender or servicer — Received bad information about your loan
Company: EQUIFAX, INC.
State: CA

Complaint narrative:
Subject : AMENDED FORMAL CFPB COMPLAINT | WITHOUT PREJUDICE | WITHOUT RECOURSE | RESERVING ALL RIGHTS UCC 1-308 | Against : XXXX XXXX XXXX XXXX XXXX XXXX XXXX | Re : XXXX, FCRA, XXXX, IRS Violations XXXX Complainant : XXXX XXXX XXXX XXXX : XX/XX/XXXX WITHOUT PREJUDICE | WITHOUT RECOURSE | RESERVING ALL RIGHTS UCC XXXX XXXX : XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX Online : XXXX Re : AMENDED FORMAL COMPLAINT AGAINST XXXX XXXX AND XXXXXXXX XXXX XXXX XXXX. For : XXXX XXXX XXXX, FCRA XXXX, TILA Violations, UDAAP Violations, Regulation Z Violations, IRS Form XXXX Issuance Conflicts, and Cancellation of Debt Fraud Arising From Materially False Loan Disbursement Reporting SECTION XXXX : COMPLAINANT INFORMATION Complainant : Full Legal Name : XXXX XXXX XXXX XXXX Birth : XX/XX/XXXX Address : XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Phone : XXXX Email : XXXX Student ID : XXXX Parties Complained Against : XXXX XXXX XXXX FURNISHER : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Phone : ( XXXX ) XXXX Email : XXXX Student Loan Account : # XXXXXXXX XXXX XXXX - CONSUMER REPORTING AGENCY : XXXX XXXX XXXX XXXX XXXX XXXX XXXX SECTION XXXX : NATURE OF COMPLAINT - AMENDED TO INCLUDE XXXX This complaint concerns multiple compounding and mutually exclusive violations now confirmed by XXXX XXXX XXXX XXXX XXXX own documents : XXXX. XXXX XXXX XXXX. as FURNISHER - Furnishing materially false, inaccurate, and misleading credit data to XXXX XXXXXXXX based upon a {$63000.00} promissory note against which only {$22000.00} was actually disbursed - a {$41000.00} discrepancy confirmed by XXXX 's own Final Disclosure Statement. XXXX. XXXX XXXX as XXXX REPORTING AGENCY - Reporting and/or accepting inaccurate credit data furnished by XXXXXXXX XXXX XXXX XXXXXXXX. without implementing reasonable procedures to ensure maximum possible accuracy as required under FCRA 15 U.S.C. 1681e ( b ). XXXX. CRITICAL NEW EVIDENCE - IRS FORM XXXX ISSUED BY XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX issued IRS XXXX XXXX for XXXX XXXX Account # XXXX, dated XX/XX/XXXX. A Form XXXX is a Cancellation of Debt form, constituting XXXX XXXX XXXX XXXX XXXX official representation to the Internal Revenue Service that debt under this loan account was cancelled or forgiven. This XXXX issuance creates XXXX mutually exclusive and irreconcilable positions that can not simultaneously be legally true : POSITION XXXX : XXXX XXXX XXXX XXXX XXXXXXXX XXXX was " fully disbursed '' at {$63000.00} POSITION XXXX : XXXX 's XXXX Disclosure confirms only {$22000.00} was actually disbursed POSITION XXXX : XXXX directed XXXX to " reapply for a new loan '' for remaining funds POSITION XXXX : XXXX is XXXX interest on the full {$63000.00} promissory note POSITION XXXX : XXXX filed XXXX XXXX with the IRS reporting cancellation of XXXX NO COMBINATION OF THESE XXXX POSITIONS IS LEGALLY COHERENT. Each position directly contradicts XXXX or more of the others. This constitutes documentary evidence of material misrepresentation to multiple federal agencies simultaneously. SECTION XXXX : STATEMENT OF FACTS AND MATTERS OF RECORD FACT XXXX - THE EXECUTED PROMISSORY NOTE : On XX/XX/XXXX, Complainant executed a XXXX XXXX XXXX promissory note with XXXXXXXX XXXX XXXX. in the certified and disclosed amount of {$63000.00}, bearing : Docusign Envelope ID : XXXX Student Loan Account : # XXXX Fixed Interest Rate : 9.49 % XXXX : 9.12 % XXXX : XXXX XXXX XXXX XXXX School : XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX - THE APPROVAL DISCLOSURE STATEMENT : XXXXXXXX XXXX XXXX XXXX issued an Approval Disclosure Statement representing : Total Loan Amount : {$63000.00} Finance Charge : {$87000.00} Total of Payments : {$150000.00} Monthly Payment : {$830.00} Deferment Period Interest Accrual : {$17000.00} Repayment : 179 monthly payments beginning XX/XX/XXXX FACT XXXX - THE SCHOOL CERTIFICATION : XXXX XXXX XXXX XXXX {$63000.00} as the cost of attendance for enrollment period XX/XX/XXXX through XX/XX/XXXX, with {$0.00} in estimated financial assistance, as documented in the executed Private Education XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX. FACT XXXX - THE FINAL DISCLOSURE CONFLICT : XXXX Bank, XXXX. issued a XXXX XXXX XXXX reflecting only {$22000.00} in actual disbursement - a {$41000.00} discrepancy and 65 % deviation from the executed {$63000.00} promissory note. FACT XXXX - THE CRITICAL XXXX ISSUANCE - NEW EVIDENCE : XXXXXXXX XXXX XXXX XXXX issued IRS Form XXXX for Student Loan Account # XXXX, dated XX/XX/XXXX, as confirmed by XXXX 's own Tax Statements document XXXX the XXXX DocumentCenter. A Form XXXX - Cancellation of Debt - is an official IRS tax XXXX filed by a lender when : A debt of {$600.00} or more is cancelled, forgiven, or XXXX The lender abandons its right to collect the debt The debt is extinguished through foreclosure, repossession, or agreement By issuing this XXXX, XXXXXXXX XXXX XXXX XXXX has made an official representation to the IRS that debt under XXXX Account # XXXX was cancelled. FACT XXXX - THE XXXX CREATES THE FOLLOWING IRRECONCILABLE LEGAL CONFLICTS : CONFLICT A - XXXX XXXX. ACTIVE INTEREST ACCRUAL : XXXX declares : Debt cancelled XXXX simultaneously : Accruing interest on {$63000.00} Legal impossibility : You can not accrue interest on cancelled debt Federal violation : IRS XXXX XXXX XXXX. XXXX - Incorrect cancellation of debt reporting CONFLICT B - XXXX vs. CREDIT BUREAU XXXX XXXX XXXX declares : Debt cancelled to IRS XXXX simultaneously : XXXX XXXX loan obligation Legal impossibility : Cancelled debt can not be simultaneously reported as active obligation Federal violation : FCRA 15 U.S.C. 1681e ( b ) - Inaccurate reporting of cancelled debt CONFLICT C - XXXX XXXX. REPAYMENT DEMAND : XXXX declares : Debt cancelled XXXX simultaneously : Maintaining {$150000.00} total repayment obligation Legal impossibility : Cancelled debt is not subject to repayment demand Federal violation : FDCPA XXXX XXXX. XXXX - False representation regarding debt CONFLICT D - XXXX vs. PHANTOM TAXABLE INCOME : XXXX reports : Cancelled debt as taxable income to Complainant Actual situation : {$41000.00} was NEVER DISBURSED to Complainant Legal impossibility : Complainant can not owe taxes on money never received Federal violation : Reporting phantom taxable income to IRS under XXXX6 U.S.C . 61 ( a ) ( 12 ) CONFLICT E - 1099-C vs. REAPPLICATION DEMAND : XXXX declares : Debt cancelled under existing loan account # XXXX XXXX simultaneously : Directing borrower to reapply for " new loan '' Legal impossibility : If debt is cancelled, why is borrower required to reapply? This demonstrates XXXX is using the XXXX to extinguish the obligation to disburse remaining funds while simultaneously collecting interest on the full {$63000.00} note FACT XXXX - INTEREST ACCRUAL ON UNDISBURSED FUNDS : XXXX XXXX XXXX XXXX. is accruing interest at 9.49 % on {$63000.00} while only {$22000.00} was disbursed : Annual interest overcharge : ~ {$3800.00} Projected XXXX overcharge : ~ {$58000.00} FACT XXXX - OUTSTANDING EDUCATIONAL EXPENSES : Summer XXXX Tuition : {$15000.00} Outstanding Meal Plan : {$1000.00} Total Balance Due : {$16000.00} Remaining Funds for Release : {$24000.00} Total Undisbursed Certified Funds : {$41000.00} FACT XXXX - NO NEW PROMISSORY NOTE ISSUED : No new promissory note has been issued for the remaining {$41000.00}. Complainant remains legally obligated and accruing interest under the original {$63000.00} note while being denied access to certified funds. SECTION XXXX : CAUSE AND EFFECT - LEGAL ANALYSIS CAUSE : XXXXXXXX XXXX XXXX executed a {$63000.00} promissory note, obtained school certification, collected borrower 's legally binding signature, disbursed only {$22000.00}, then issued a XXXX to the IRS while XXXX : Charging interest on the full {$63000.00} Reporting the full {$63000.00} to credit bureaus Refusing to disburse remaining certified funds Directing borrower to reapply for funds already obligated EFFECT : Complainant owes taxes on up to {$41000.00} in phantom income never received Complainant 's credit report reflects inaccurate {$63000.00} obligation Complainant is paying interest on {$41000.00} never disbursed Complainant is denied {$41000.00} in certified educational funds Complainant faces potential IRS tax XXXX on cancelled debt never received Complainant 's debt-to-income ratio is artificially inflated by {$41000.00} SECTION XXXX : FEDERAL VIOLATIONS - EXPANDED TO INCLUDE XXXX VIOLATIONS BY XXXX XXXXXXXX : XXXX. FCRA 15 U.S.C. 1681e ( b ) - Maximum Possible Accuracy Reporting an active {$63000.00} loan obligation for an account on which XXXX has filed a XXXX Cancellation of Debt with the IRS violates XXXX XXXX XXXXXXXX to maintain maximum possible accuracy. XXXX. FCRA 15 U.S.C. 1681i - Reinvestigation Required The existence of a XXXX for this account creates a mandatory reinvestigation obligation. Cancelled debt must not be reported as active debt. XXXX. FCRA 15 U.S.C. 1681c - Prohibited XXXX XXXX an obligation confirmed as cancelled by IRS XXXX XXXX as an active debt obligation constitutes materially inaccurate and misleading credit reporting. VIOLATIONS BY XXXX XXXX XXXX. : XXXX. IRS XXXX XXXX XXXX. XXXX - Incorrect XXXX Filing XXXXXXXX XXXX XXXX XXXX. issued a XXXX for a loan on which it is simultaneously : Accruing interest Maintaining repayment obligation XXXX as active debt to credit bureaus These actions are mutually exclusive with a valid XXXX issuance. XXXX. XXXX XXXX - Discharge of Indebtedness If XXXX XXXX XXXX cancelled debt under this loan, it can not simultaneously collect on that debt. The issuance of a XXXX extinguishes XXXX 's XXXX to collect on the cancelled amount. XXXX. XXXX XXXX. XXXX ( a ) ( XXXX ) - PHANTOM TAXABLE INCOME By issuing a XXXX on funds never actually disbursed to Complainant, XXXXXXXX XXXX XXXX XXXX has reported phantom taxable income to the IRS, creating an unlawful tax liability for Complainant on money never received. This is a violation of IRS reporting requirements under XXXX XXXX. XXXX and constitutes potential tax fraud. XXXX. FCRA 15 U.S.C. 1681s-2 ( a ) - Furnishing XXXX XXXX XXXXXXXX XXXX XXXX XXXX can not simultaneously : Report active {$63000.00} debt to credit bureaus File XXXX cancellation of debt with IRS XXXX XXXX these reports is necessarily false. Both can not be accurate simultaneously. XXXX. FDCPA 15 U.S.C. 1692e - False Representations Attempting to collect on or maintain repayment obligations for debt reported as cancelled via XXXX constitutes a false representation regarding the character, amount, or legal status of a debt. XXXX. TILA 15 U.S.C. 1638 | Regulation Z 12 CFR 1026.18 Material misrepresentation of amount financed, finance charges, total of payments, and XXXX through conflicting Approval Disclosure ( {$63000.00} ), Final Disclosure ( {$22000.00} ), and XXXX ( cancellation of debt ). XXXX. XXXX XXXX XXXX XXXX XXXX XXXX. XXXX - UDAAP UNFAIR : Charging interest on {$41000.00} never disbursed then cancelling same debt via XXXX DECEPTIVE : Simultaneously representing to IRS ( XXXX ), school ( fully disbursed ), credit bureau XXXX XXXX ), and borrower ( reapply ) with XXXX mutually exclusive positions ABUSIVE : Creating phantom IRS tax XXXX on money never received by borrower XXXX. HIGHER EDUCATION ACT XXXX - XXXX XXXX. XXXX XXXX certified {$63000.00}. XXXX disbursed {$22000.00}, then cancelled remaining debt via XXXX without borrower consent or new certification. XXXX. BREACH OF CONTRACT - LOAN AGREEMENT Section XXXX : Staged disbursements permitted under XXXX note - violated Section XXXX : Final Disclosure governs - {$63000.00} repayment invalidated Section XXXX : Modification requires mutual written consent - violated XXXX. SEC VIOLATIONS Securities XXXX of XXXX XXXX ( a ) | XXXX XXXX XXXX ( b ) | Rule XXXX If this loan was securitized as a {$63000.00} asset while only {$22000.00} was disbursed and a XXXX was filed, investors were materially misled regarding the value and status of the underlying asset. XXXX VI : THE XXXX IRRECONCILABLE CONTRADICTIONS The XXXX 's attention is respectfully directed to the following XXXX irreconcilable contradictions in XXXXXXXX XXXX XXXX XXXX position, each confirmed by XXXX 's own documents : XXXX XXXX - FULLY DISBURSED XXXX. FINAL DISCLOSURE : XXXX told XXXX : " Fully disbursed '' at {$63000.00} XXXX 's Final Disclosure : Only {$22000.00} disbursed XXXX 's own document proves its own representation false CONTRADICTION XXXX - ACTIVE DEBT vs. XXXX CANCELLATION : XXXX reports XXXX credit bureaus : Active {$63000.00} obligation XXXX reports XXXX IRS via XXXX : Debt cancelled Debt can not be simultaneously active and cancelled CONTRADICTION XXXX - INTEREST ACCRUAL XXXX. CANCELLATION : XXXX accruing interest on : {$63000.00} XXXX 's XXXX : Debt cancelled Interest can not legally accrue on cancelled debt CONTRADICTION XXXX - REAPPLICATION DEMAND vs. XXXX : XXXX instructs borrower : XXXX Reapply for a new loan '' XXXX 's XXXX : XXXX cancelled debt under existing loan If debt was properly cancelled, reapplication makes no legal sense This pattern suggests XXXX was used to extinguish disbursement obligation while retaining collection rights - a classic predatory lending scheme CONTRADICTION XXXX - PHANTOM INCOME vs. NEVER DISBURSED : XXXXXXXX XXXX XXXXXXXX : Reports cancelled debt as XXXX income to Complainant Documented fact : {$41000.00} was NEVER disbursed to Complainant or school Complainant faces IRS tax liability on money never received This is the XXXX egregious violation as it creates direct, quantifiable financial harm through false IRS reporting SECTION XXXX : RELIEF REQUESTED FROM THE CFPB XXXX REQUESTED FROM TXXXX XXXX : RELIEF XXXX : Immediately flag SoFi loan account # XXXX as DISPUTED pending reinvestigation. RELIEF XXXX : Conduct complete reinvestigation within 30 days under FCRA 15 U.S.C. 1681i requiring XXXX to produce complete disbursement history, XXXX XXXX, and reconciliation of XXXX against active reporting. RELIEF XXXX : Correct or delete reporting of cancelled debt. A XXXX filed account can not simultaneously appear as an active debt obligation on XXXX 's credit report. RELIEF XXXX : Correct all associated figures - balance, payment amount, finance charges, XXXX. RELIEF REQUESTED FROM XXXXXXXX XXXX XXXX XXXX RELIEF XXXX : Immediate disbursement of remaining certified funds under existing {$63000.00} note : Summer XXXX Tuition : {$15000.00} Meal Plan Balance : {$1000.00} Eligible Fund Release : {$24000.00} Total : {$41000.00} RELIEF XXXX : Immediate correction and withdrawal of the XXXX if the debt was not properly cancelled, or alternatively, immediate cessation of all interest accrual and collection activity on cancelled debt. RELIEF XXXX : XXXX correction of all interest calculations to reflect actual disbursed amount of {$22000.00} only, with full refund accounting of all excess interest charged. RELIEF XXXX : Issuance of corrected IRS tax documents to both the IRS and Complainant accurately reflecting the true nature and amount of any cancelled debt, to eliminate phantom tax liability on funds never received. RELIEF XXXX : Issuance of corrected disclosure documents accurately reflecting actual amount financed, corrected finance charges, corrected total of payments, corrected monthly payment, and corrected XXXX. RELIEF XXXX : Written legal explanation of the basis for simultaneously : Reporting loan as active to credit bureaus Filing XXXX cancellation with IRS Accruing XXXX on full {$63000.00} Refusing disbursement of remaining certified funds RELIEF XXXX : Confirmation of whether this loan has been securitized and current holder identity. RELIEF REQUESTED FROM THE CFPB : RELIEF XXXX : Investigate whether XXXXXXXX XXXX XXXX. has engaged in a pattern of issuing XXXX forms on student loans while simultaneously maintaining collection and reporting activity on those loans - a potential systemic predatory lending practice affecting other borrowers. RELIEF XXXX : Refer this matter to the IRS for investigation of improper XXXX reporting creating phantom taxable income for borrowers on funds never disbursed, under XXXX U.S.C. XXXX. RELIEF XXXX : Refer this matter to the SEC for investigation of securities fraud if loans are being securitized as {$63000.00} assets when actual disbursements are {$22000.00} and XXXX have been filed. RELIEF XXXX : Refer this matter to the XXXX Department of Education for XXXX XXXX XXXX violations. RELIEF XXXX : Refer this matter to the Federal Trade Commission for XXXX XXXX FDCPA violations arising from collection activity on XXXX cancelled debt. SECTION XXXX : PRIOR ATTEMPTS TO RESOLVE XXXX. Complainant contacted XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX regarding outstanding balance and remaining certified funds. XXXX. XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) communicated with XXXXXXXX XXXX XXXX on XXXX 's behalf. XXXX. XXXX responded the loan was " fully disbursed '' and directed XXXX to " reapply for a new loan. '' XXXX. XXXX 's own XXXX XXXX confirms only {$22000.00} was disbursed- directly contradicting this representation. XXXX. XXXX 's own XXXX XXXX document confirms issuance of XXXX for XXXX Account # XXXX - creating an additional irreconcilable contradiction. XXXX. A formal legal dispute letter was sent to XXXXXXXX XXXX XXXX. Legal and Compliance at XXXX and via certified mail. No satisfactory response received. XXXX. Complainant now faces potential IRS tax liability on money never received due to XXXX 's improper XXXX filing. SECTION XXXX : DOCUMENTS ENCLOSED XXXX. Copy of executed Promissory Note - {$63000.00} ( XX/XX/XXXX ) Docusign Envelope ID : XXXX XXXX. Copy of Approval XXXX XXXX- {$63000.00} XXXX. XXXX of XXXX XXXX XXXX- {$22000.00} XXXX. XXXX of XXXX XXXX XXXX XXXX XXXX XXXX- {$63000.00} XXXX. XXXX of XXXX XXXX XXXX XXXX confirming XXXX issuance for XXXX # XXXX XXXX. Copy of XXXX University XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX XXXX ) XXXX. Copy of formal legal dispute letter sent to XXXXXXXX XXXX XXXX XXXX. Copy of certified mail receipt confirming delivery to XXXXXXXX XXXX XXXX XXXX. XXXX of XXXX credit report showing inaccurate active reporting of cancelled/undisbursed debt XXXX. Copy of government-issued photo identification SECTION X : RESERVATION OF ALL RIGHTS I hereby explicitly reserve all rights without prejudice and without recourse under : UCC XXXX XXXX Without Prejudice | Without Recourse Fair Credit Reporting Act 15 U.S.C. 1681 et seq. Truth in Lending Act 15 U.S.C. 1601 et seq. XXXX XXXX XXXX XXXX XXXX2 U.S.C. 5481 et seq. Fair Debt Collection Practices Act 15 U.S.C. 1692 et seq. XXXX XXXX XXXX XXXX XXXX. XXXX et seq. XXXX XXXX XXXX XXXX XXXX. XXXX et seq. Securities XXXX of XXXX Securities Exchange Act of XXXX All applicable federal and state consumer protection laws All common law rights and remedies This complaint does not constitute a waiver of any rights, remedies, or claims, express or implied. Complainant reserves the right to pursue all available legal remedies simultaneously with and independent of this CFPB complaint. Respectfully Submitted Without Prejudice, _______________________________ XXXX XXXX, Complainant All Rights Reserved - XXXX XXXX Without Recourse - Without Prejudice XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXXXXXX Phone : XXXX Email : XXXX Date : XX/XX/XXXX CC : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Legal and Compliance - XXXX Internal Revenue Service XXXX IRS XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX - Attn : XXXX XXXX XXXX Federal Reserve XXXX - XXXX Office of the Comptroller of the Currency ( XXXX ) - XXXX Securities and Exchange Commission ( SEC ) XXXX XXXX XXXX Department of Education XXXX XXXX Federal Trade Commission XXXX FTC XXXX XXXX XXXX Personal Legal File

Company response to consumer: Closed with explanation