Consumer complaint received 2025-08-06 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: PREFERRED CREDIT INC
State: MS

Complaint narrative:
Company : Preferred Credit Inc Credit Bureau ( s ) : XXXX XXXX Account Reference : XXXX XXXX Issue Category : Incorrect Information on Credit Report Date Account Charged-Off : XX/XX/XXXX Complaint Filed By : XXXX Summary of Complaint Preferred Credit Inc has continuously reported this account as Charged-Off for over three years, with no updates, no resolution, and no suppression of derogatory status despite multiple formal disputes submitted by me. The balance remains unchanged, and the account is still coded as active, which is both factually inaccurate and legally indefensible.

This prolonged and static reporting violates multiple provisions of the Fair Credit Reporting Act ( FCRA ) and XXXX XXXX industry standards, and has caused me direct financial harm, emotional distress, and reputational damage.

Violations Cited FCRA Violations 1681e ( b ) : Failure to maintain reasonable procedures to ensure maximum possible accuracy. Preferred Credit has reported stale, unverifiable data for over 36 months.

1681c ( a ) ( 4 ) : Reporting obsolete delinquency beyond the permissible timeframe. The accounts derogatory status has not been updated since the charge-off in XXXX. 

1681i ( a ) : Failure to conduct a lawful reinvestigation after receiving consumer disputes. No changes were made to the tradeline despite multiple dispute submissions.

1681s-2 ( b ) : Furnishing inaccurate information after being notified of a dispute. Preferred Credit continued reporting the same derogatory status without verifying or correcting the data. 

XXXX XXXX Compliance Violations Improper Use of Status Code 97 ( Charge-Off ) : XXXX XXXX XXXXuidelines prohibit indefinite use of charge-off status without updated activity or resolution. This account has been frozen in a derogatory state since XXXX. 

Missing or Incorrect Field 12 ( Date of First Delinquency ) : The tradeline lacks a properly coded delinquency date, which is required to determine aging and expiration under FCRA.

Failure to Update Payment History Profile : The account shows no progression, resolution, or closure violating XXXX XXXX requirement for accurate aging and status transitions. 

Absence of Dispute Indicator ( Code 166 ) : Despite multiple disputes, Preferred Credit failed to apply or update the dispute indicator, violating XXXX XXXX re-investigation and suppression protocols. 

XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Furnishers must conduct meaningful investigations. Failure to do so constitutes willful noncompliance under FCRA. 

XXXX v. XXXX XXXX XXXX XXXX. XXXX ( XXXX. XXXX ) : Court upheld XXXX XXXX compliance as a defense but also confirmed that failure to follow XXXX XXXX can result in inaccurate reporting. 

XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX. XXXX ( S.D. XXXX. XXXX ) : Jury awarded damages for improper Payment Rating coding and failure to update closed account status. 

XXXX v. XXXX  XXXX. XXXX, XXXX, XXXX. XXXX ( XXXX Cir. XXXX ) : Consumers may recover statutory damages for willful FCRA violations even without proving actual damages.

I have submitted multiple disputes in good faith. Preferred Credit Inc has ignored them, failed to investigate, and continued reporting false and outdated information. This is not a clerical error it is willful negligence. I am demanding full deletion of this account and monetary compensation for the harm caused. If this matter is not resolved within 15 days, I will escalate to formal litigation and pursue the maximum statutory, actual, and punitive damages allowed by law. I am not backing down.

Company response to consumer: Closed with explanation