Consumer complaint received 2025-08-25 00:00:00
Product: Debt collection — I do not know
Issue: Attempts to collect debt not owed — Debt was paid
Company: Mercedes Benz Financial Services
State: VA

Complaint narrative:
I am filing this complaint against XXXX  XXXX XXXX XXXX XXXX, XXXX  XXXX XXXX XXXX, and XXXX  XXXX, as well as the furnisher Mercedes-Benz Financial , regarding the continued reporting of an alleged auto loan account. This account is inaccurate, incomplete, unverifiable, and directly conflicts with a valid UCC-1 financing statement I have filed that perfects my secured interest in the vehicle in question.

Despite multiple lawful disputes, the credit bureaus have not conducted a proper reinvestigation as required by the Fair Credit Reporting Act. Under 15 U.S.C. 1681i, the bureaus must perform a reasonable reinvestigation and provide me with a description of the procedure used to verify the item. That description must include the business name, address, and telephone number of the furnisher contacted, per 1681i ( a ) ( 6 ) ( B ) ( iii ). I have not been given any such lawful description. Instead, I received generic notations that the account was verified. Under 1681i ( a ) ( 7 ), when I requested the method of verification, the bureaus were obligated to provide details of how the information was verified, who was contacted, and what documentation was reviewed. This never occurred. Reliance on automated e-OSCAR responses or conclusory confirmations from Mercedes-Benz Financial is not sufficient. The court in XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. 1997 ), held that CRAs can not meet their obligations by parroting a furnishers word they must obtain and review substantive evidence, such as original signed loan agreements, full billing statements, and proof of lawful assignment or ownership. None of this has been produced. 

Mercedes-Benz Financial has also failed its duties as a furnisher under FCRA 1681s-2 ( b ). The law requires that a furnisher conduct a proper investigation and provide verifiable documentation or delete the item. To date, no original signed contract, no complete payment history, and no admissible proof of ownership have been provided. This is a direct violation of their obligations under the FCRA. Furthermore, I issued lawful Cease and Desist instructions, yet Mercedes-Benz Financial continues to furnish this alleged loan. Under FDCPA 805 ( c ), they are required to stop all communication and reporting unless proper verification is produced. Continuing to furnish without lawful verification constitutes harassment and unlawful collection activity.

This is further complicated by the fact that I have a UCC-1 financing statement filed with the state, which perfects my secured interest in the vehicle. Mercedes-Benz Financials reporting fails to reflect this public record, creating a false impression of lien priority and ownership status. Furnishing information that contradicts a perfected public record is misleading and inaccurate under FCRA 623. It also places me at risk of financial harm by clouding title and misrepresenting my secured rights.

The credit bureaus and Mercedes-Benz Financial are compounding this harm by continuing to report unverifiable information despite their documented history of consumer data breaches. Continuing to publish inaccurate and unverifiable data, particularly when it conflicts with a public UCC filing, exposes me to heightened risk of fraud and identity theft in violation of FACTA and GLBA. 

The reporting of this unverifiable Mercedes-Benz Financial auto loan has caused direct harm, including higher borrowing costs, credit denials, and reputational injury. Under FCRA 1681n and 1681o, as well as FDCPA 813 ( 15 U.S.C. 1692k ), I am entitled to statutory damages of no less than {$1000.00} per violation, in addition to actual damages and costs. Each failure to investigate properly, each failure to provide the method of verification, and each act of unlawful furnishing in conflict with my UCC filing constitutes a separate violation. 

I therefore demand that this Mercedes-Benz Financial auto loan be permanently deleted from all of my credit files unless and until original, admissible evidence can be produced including the signed contract, full payment history, and reconciliation with the public UCC-1 financing statement of record. I also demand disclosure of the actual method of verification, including the name, title, and contact information of the individual who allegedly verified the item and the specific documents reviewed. Automated or generic responses do not satisfy federal law. Mercedes-Benz Financial must also cease all further reporting and communication regarding this matter unless they can demonstrate lawful standing and priority consistent with my perfected UCC-1 filing .

The continued reporting of this unverifiable Mercedes-Benz Financial auto loan , in direct contradiction to a perfected UCC-1 financing statement, is unlawful and harmful. I respectfully request that the CFPB enforce immediate deletion of this account, or else enforce statutory remedies for each violation as the law provides.

Company response to consumer: Closed with explanation