Consumer complaint received 2025-02-19 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc.
State: GA

Complaint narrative:
I am filing this complaint due to the inaccurate and misleading reporting practices by [ Creditors Name, e.g., XXXX XXXX XXXX ] concerning an auto loan that has been marked as a Charge-Off and categorized as a Profit and Loss Write-Off while still showing an outstanding balance of {$17000.00}. This reporting has significantly impac

ted my credit score and creates confusion regarding the actual status of the debt. Multiple federal laws appear to have been violated in this process. 1. Inaccurate and Misleading Reporting FCRA Violation Under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681s-2 ( a ), creditors are required to report accurate and complete information to credit bureaus. In this case : The account is reported as both a Profit and Loss Write-Off and as having an active balance, creating a misleading representation of the account status. 

FCRA Section 605 ( a ) limits the reporting of charge-offs to 7 years from the original delinquency date. Any attempt to " re-age '' the debt to extend its negative impact violates this provision.

2. Failure to Issue 1099-C IRS Violation Under IRS Regulation 6050P, a lender is required to issue a 1099-C ( Cancellation of Debt ) when {$600.00} or more has been canceled or forgiven. The reporting of a Profit and Loss Write-Off suggests the creditor has considered the debt as canceled for tax purposes, yet no 1099-C has been issued. This creates ambiguity over the debt 's legal status and violates IRS reporting requirements.

3. False or Misleading Collection Practices FDCPA Violation If the lender continues to pursue collection after marking the debt as a Profit and Loss Write-Off, this could violate the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e, which prohibits false or misleading representations in the collection of debts. Reporting the debt as " written off '' while still treating it as active for collection purposes is inherently deceptive.

4. Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) CFPB Standards The conflicting reporting of the account status constitutes an Unfair, Deceptive, or Abusive Act or Practice ( UDAAP ) under CFPB guidelines. This inaccurate information negatively impacts my credit profile and misleads potential lenders regarding my creditworthiness.

5. Failure to Investigate and Correct Disputed Information FCRA Section 611 Upon identifying the discrepancies, I requested clarification regarding the charge-off status and whether a 1099-C had been filed. The creditor failed to provide adequate documentation or correct the misleading information. Under FCRA Section 611 ( 15 U.S.C. 1681i ), creditors and credit bureaus are required to conduct a reasonable investigation into disputes and correct any inaccuracies.

-- - Requested Resolution : Immediate correction of the credit report to accurately reflect the account status.

Issuance of a 1099-C if the debt has been officially canceled.

Removal of the misleading Profit and Loss Write-Off if the debt remains active and collectible. 

Full compliance with FCRA, FDCPA, IRS regulations, and CFPB standards.

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