Consumer complaint received 2024-12-01 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: AMERICAN EXPRESS COMPANY
State: FL

Complaint narrative:
I am filing this formal complaint against American Express and XXXX XXXX  for their egregious violations of federal laws, fraudulent reporting of charged-off accounts, and deceptive practices regarding the handling of my promissory notes. Their actions include, but are not limited to, reporting inaccurate debts, failing to disclose the securitization of my promissory notes, and depriving me of my rightful claims and interests as the creditor. 

XXXX. Fraudulent Reporting of Charged-Off Accounts American Express and XXXX XXXX  have unlawfully reported charged-off accounts to credit reporting agencies. Charged-off accounts, when reported to the IRS via 1099-C forms, are classified as income under federal tax law. However, income is not a permissible category for inclusion on a consumer credit report under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681.

Violation : By continuing to report these accounts as outstanding debt on my credit report, American Express and XXXX XXXX  have breached the FCRA, specifically 15 U.S.C. 1681c ( a ), which prohibits the inclusion of inaccurate and impermissible information. 
XXXX XXXX XXXX : XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX. XXXX ) : The court emphasized that debts reported inaccurately or without validation are unlawful. 
XXXX v. XXXX. XXXX XXXX, XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Misleading credit reporting violates the FCRA and FDCPA. 
XXXX. Breach of Contract : Securitization and Non-Disclosure Both American Express and XXXX XXXX  engaged in the securitization of my promissory notes without my knowledge or consent. Securitization involves selling or transferring the promissory note as an asset, generating proceeds that are not disclosed or applied to offset the alleged debt. 

Violation : Non-Disclosure : Failing to disclose the sale and securitization of my promissory note constitutes fraud and a breach of their duty of good faith and fair dealing. 
No Consideration : As the issuer of the promissory note, I am the creditor and provided the initial value through my signature and agreement. Because I was not compensated for the securitization, there is no outstanding debt owed. 
Proceeds from Sale : The proceeds from the sale of the promissory note must be applied to extinguish any alleged debt. By withholding these funds, American Express and XXXX XXXX  are unjustly enriching themselves at my expense. 
XXXX XXXX XXXX : XXXXXXXX XXXX XXXXXXXX : Establishes that a promissory note fully funds the transaction, making the issuer of the note the creditor. Any subsequent sale or securitization of the note is subject to full disclosure and proper accounting to the original issuer. 
XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXX ( XXXX ) : Reiterates that the promissory note is the principal obligation, and its assignment must be fully disclosed. 
XXXX. Fraudulent Concealment of Securitization Proceeds American Express and XXXX XXXX  knowingly concealed the securitization of my promissory notes and the proceeds generated from their sale. This fraudulent concealment violates federal and state laws and nullifies any claim that there is a debt owed. 
Legal Basis : UCC 3-305 : Affirmative defenses include failure of consideration and fraud in the inducement.

Restatement ( Second ) of Contracts, 161 : Non-disclosure of material facts constitutes fraud.

4. Claiming My Rights and Interests as the Creditor As the issuer of the promissory notes, I am the creditor and have rights to the proceeds and interests generated from the securitization. By failing to compensate me for these proceeds or properly account for them, American Express and XXXX XXXX  have violated my rights under contract law and federal statutes. 

XXXX. Failure to Provide Audit Reports and XXXX Documentation American Express and XXXX XXXX  have XXXX failed to comply with their legal obligation to provide an accurate audit report and records in compliance with Generally Accepted Accounting Principles ( GAAP ). These reports are critical to ensuring transparency and validating the legitimacy of any claims regarding an alleged debt. 

Legal Obligations Under Federal Law Requirement for GAAP-Compliant Audit Reports Under 15 U.S.C. 78m ( Section 13 of the Securities Exchange Act of 1934 ), financial institutions are required to maintain accurate books and records and provide GAAP-compliant audit reports to substantiate any financial transactions. 
Failure to provide such documentation is a violation of federal law and raises concerns about the legitimacy of the alleged debt and the reporting of such debt.

Truth in Lending Act ( TILA ) Violations 15 U.S.C. 1601 et seq. ( TILA ) : Lenders are required to disclose all terms, conditions, and costs associated with a credit transaction. This includes providing clear and accurate accounting of any amounts owed, offsets applied, and proceeds generated through securitization. 
American Express and XXXX XXXX  have violated TILA by failing to disclose : The securitization of my promissory note. 
The proceeds derived from the sale or transfer of the note. 
The application ( or lack thereof ) of those proceeds to offset the alleged debt. 
Demand for Full Audit and Disclosure Pursuant to 15 U.S.C. 1639 ( g ) ( TILA ), creditors are required to maintain and disclose accurate records regarding the origination, transfer, and securitization of loans. I hereby demand : A GAAP-Compliant Audit Report Provide a detailed audit of the alleged account, including : The original promissory note. 
Records of any transfers, sales, or securitizations.

Proceeds generated from such transactions and their application.

Validation of Debt Supply documentation that validates the existence of the alleged debt under the provisions of 15 U.S.C. 1692g ( FDCPA ).

Any failure to provide these records will be considered evidence that the debt is not valid and that reporting such a debt constitutes fraud.

Application of Securitization Proceeds Provide a detailed accounting of all proceeds from the securitization of the promissory note and how those proceeds were applied to offset any alleged balance.

Failure to Comply and Consequences The refusal or failure to provide these legally required disclosures and audit reports constitutes a breach of federal law and fiduciary duty. It also undermines the principles of transparency and accountability mandated by GAAP and federal statutes.

Company response to consumer: Closed with non-monetary relief