Consumer complaint received 2025-01-22 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: EQUIFAX, INC.

Complaint narrative:
see case XXXX On XX/XX/XXXX, there was no proof I opened a Visa credit card account with XXXX XXXX XXXX XXXX XXXX XXXX XXXX  I was not aware a {$67.00} was due on the XXXX of each month, XXXX initiated collection efforts, and after 180 days of delinquency, the account was charged off on XX/XX/XXXX, with a balance of {$2800.00}. Since then, the account has been assigned to multiple third-party collection agencies for debt recovery. I did not give permission for my data to be disclosed this FRAUD Despite my requests for debt validation and verification, I did not receive proper documentation to substantiate the collection claims. 

I formally requested that XXXX issue a signature page with my Signature and a XXXX Cancellation of Debt form, as the charged-off balance meets the XXXX criteria for debt forgiveness reporting. XXXX declined my request, stating that the account does not qualify, despite it being classified as a charge-off under Generally Accepted Accounting Principles ( GAAP ). 

Additionally, I have noticed that XXXX continues to report the account as currently delinquent on my credit report, despite the account being closed and charged off. This practice misrepresents the true status of the account and negatively impacts my credit standing. According to federal law, including the Fair Credit Reporting Act ( FCRA ) and various legal precedents, such reporting is inaccurate and misleading. 

I have also requested arbitration as per the terms outlined in the XXXX Credit Card XXXX to resolve this dispute, but I have not received a response regarding arbitration procedures. 
In Texas, and under federal law, it is generally considered unlawful or inaccurate for a company to sell a charged-off debt to a collection agency and still report it with an updated balance on your credit report. Once a debt is charged off, the original creditor should report a XXXX balance, as they have written it off as a loss and transferred ownership. The new owner ( debt buyer ) should then report the debt under their name. 

Relevant Legal References : Fair Credit Reporting Act ( FCRA ) XXXX XXXX XXXX XXXX XXXX XXXX 

Creditors must report accurate and complete information to credit bureaus ( XXXX XXXX. XXXX ). 
If a debt is sold, the original creditor should update the balance to zero and not report an ongoing balance. 
Consumers have the right to dispute inaccurate or incomplete information under XXXX XXXX. XXXX. 
XXXX XXXX XXXX, XXXX XXXXXXXX ( Texas Debt Collection Act ) Under Section XXXX, misrepresenting the character, amount, or status of a debt is prohibited. Reporting an incorrect balance after a charge-off XXXX violate this provision. 
Section XXXX provides consumers the right to dispute and require verification of reported debts. 
Fair Debt Collection Practices Act ( FDCPA ) - XXXX XXXX. XXXX ( XXXX ) Key Legal Points : Charge-Off Accounting Standards ( GAAP Compliance ) : According to Generally Accepted Accounting Principles ( GAAP ), when a creditor charges off a debt, it is considered a loss on their financial statements. Reporting a continuously updated delinquent balance after a charge-off can be misleading and inaccurate under the FCRAs requirement to provide fair and accurate reporting.

Case Law Reference : In re XXXX, XXXX B.R. XXXX ( XXXX. XXXX. XXXX XXXX ) This case established that once a debt is charged off, it should no longer be reported as an active debt with ongoing delinquency updates. 
FCRA Violation Inaccurate Reporting of Charge-Off Balances : Under the FCRA XXXX XXXX XXXX XXXXXXXX ( XXXX XXXX XXXX  furnishers of information ( such as XXXX ) XXXX report accurate and complete information to credit reporting agencies. Reporting a charged-off account with an updated balance misrepresents the nature of the debt and can be considered misleading or deceptive. 
Case Law Reference : XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX. XXXX XXXX ( S.D. Iowa XXXX ) The court ruled that reporting a charge-off with continuing delinquency updates was inaccurate and misleading to consumers. 
Sold XXXX and XXXX Agencies : If XXXX has sold the debt to a third-party collection agency, XXXX no XXXX has a financial interest in the debt and, therefore, should update the balance to {$0.00} on the consumers credit report, with a remark stating that the account was charged off or transferred/sold to another lender. 
Case Law Reference : XXXX XXXX XXXX & XXXX, XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) This case emphasized that creditors must report correct information to credit bureaus and failing to do so violates FCRA standards. 


Debt XXXX must not report false or misleading information about a debt, including reporting an incorrect balance after a charge-off. 
What You Can Do : Dispute the error with the credit bureaus ( Equifax, XXXX, and XXXX ) under the FCRA. 
Request debt validation from the debt collector under the FDCPA. 
File a complaint with the Texas Attorney Generals office or the Consumer Financial Protection Bureau ( CFPB ) if the creditor continues to report inaccurate information. 
Would you like a sample dispute letter to send to the credit bureaus?

Company response to consumer: Closed with explanation