Consumer complaint received 2025-06-22 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Old information reappears or never goes away
Company: BANK OF AMERICA, NATIONAL ASSOCIATION
State: WA

Complaint narrative:
Dear Consumer Financial Protection Bureau, I am writing to file a formal dispute and complaint concerning charge-off accounts that are currently being reported on my credit report by Bank of America and XXXX XXXX, despite these accounts being previously charged off and likely written off as bad debt for tax purposes by the original creditors. 

If these debts have been charged off, then per common accounting and tax practices, the creditors have already received compensation through IRS tax deductions under the U.S. Tax Code. Therefore, I am requesting a full investigation into how and why these companies or any third-party collection agencies are still attempting to collect or report these accounts as unpaid and derogatory, effectively double-dipping. 


Accounts in Question : Bank of America XXXX XXXX XXXX, XXXX XXXX, TX XXXX | XXXX Account # XXXX XXXXXXXX | Opened : XX/XX/XXXX | Balance : {$3100.00} Account # XXXX XXXXXXXX | Opened : XX/XX/XXXX | Balance : {$4200.00} Both accounts are marked as Charged Off and were closed by the credit grantor. 


XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, UT XXXX | XXXX Account # XXXX XXXXXXXX | Opened : XX/XX/XXXX | Balance : {$3700.00} Reported as charged off and closed. 



-- - Dispute Details and Legal Concerns : 1. Charged-Off Debt Already Tax-Reimbursed by IRS : When a creditor charges off a debt, they typically claim it as a loss and receive tax relief or credits through IRS Form 1099-C or related deductions. Once a creditor writes off a debt and receives that benefit, they are made whole from an accounting perspective. 


I have received no validation or documentation showing that these debts were legally transferred or sold to a new collector with the right to collect. If the original creditor charged off and retained the account, they must not collect again after claiming the tax write-off. 


These charge-off accounts continue to cause significant harm to my credit profile, despite being uncollectible by the original creditor. There must be clear federal oversight to determine whether this practice violates the Fair Credit Reporting Act ( FCRA ) or other federal consumer protections. 

If the creditors wrote off the debt and submitted a 1099-C form to the IRS, I am entitled to a copy for my own records. I have not received any such document. This further supports my concern that these creditors are benefiting from the write-off and continuing to damage consumers credit without transparency. 

I respectfully ask the CFPB to : Investigate how these creditors are reporting and collecting on charge-off accounts that have potentially already been written off and reimbursed through the tax system. 

Require documentation from Bank of America and XXXX XXXX  to prove : Whether a 1099-C was issued and IRS reimbursement claimed ; Whether the debt was sold or retained after charge-off ; That any ongoing collection activity complies with federal law. 


Order the removal of these charge-off accounts from my credit reports if proper validation is not provided or if they are found to be uncollectible under IRS or FCRA rules. 

Determine whether this behavior constitutes deceptive, unfair, or abusive acts under the Dodd-Frank Act. 

Thank you for your time and for protecting consumers from unfair reporting and collection practices. I look forward to your assistance in resolving this matter.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation