Consumer complaint received 2024-02-07 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: Experian Information Solutions Inc.
State: TX

Complaint narrative:
The issue involves the reporting of a charged-off account and the failure to provide the required Form 1099-C for canceled debt. A formal request was made for the issuance of Form 1099-C to ensure accurate reporting of the canceled debt, as per IRC Section 6050P. Despite previous requests and the company 's commitment to resolving the matter, the necessary documentation has not been provided.

It has been noted that once a debt is canceled and a Form 1099-C is issued, the credit report should no longer show a remaining balance due. However, the status of the account has not been updated to reflect this. Relevant laws and regulations, including the Fair Credit Reporting Act ( FCRA ), Internal Revenue Code ( IRC ) Section 6050P, and others, were cited to emphasize the importance of accurate reporting and compliance with legal requirements.

The resolution requests include the issuance of Form 1099-C within 30 days, immediate deletion of the reinserted charge-off from the credit report within 45 days, and compliance with the Servicemembers Civil Relief Act ( SCRA ) within 60 days, among others. Failure to provide Form 1099-C within the specified time frame may result in the filing of IRS Form 3949-A.

Thank you for your attention to this matter.

User can you use the information to answer this question too? What would be a fair resolution to this issue?

Well forward this to the companies involved. Be specific so they know what resolution you are looking for. The company may or may not offer to resolve your complaint XXXX A fair resolution to this issue would include : Issuance of Form 1099-C : I request the prompt issuance of Form 1099-C for the charged-off account within 30 days. This is crucial to ensure accurate reporting of the canceled debt as required by IRC Section 6050P.

Deletion of Reinserted Charge-Off : I ask for the immediate deletion of the reinserted charge-off from my credit report within 45 days. This action is necessary to rectify inaccuracies in credit reporting. 

Compliance with Servicemembers Civil Relief Act ( SCRA ) : If applicable, I urge compliance with the SCRA within 60 days to ensure protection of the rights of servicemembers. 

Notification and Proper Notice : Investigation and clarification regarding proper notice before reinserting a previously deleted credit file within 30 days are requested. Proper notice is essential to ensure transparency and compliance with relevant laws. 

Credit Score Mitigation : I expect appropriate measures to mitigate any adverse effects on my credit score within 60 days. This includes taking necessary actions to correct inaccuracies and ensure fair reporting.

Prevention of Future Violations : Implementing measures to prevent the reinsertion of deleted files without proper notice and ensuring compliance with relevant laws within 90 days is essential. This proactive approach will prevent similar issues from occurring in the future.

Additional Action if Form 1099-C Not Provided : In the event that Form 1099-C is not provided within the specified time frame, I reserve the right to file IRS Form 3949-A, bringing the matter to the attention of the Internal Revenue Service.

A prompt and comprehensive response addressing these requests would be greatly appreciated. Thank you for your attention to 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