Consumer complaint received 2025-04-15 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Investigation took more than 30 days
Company: NAVY FEDERAL CREDIT UNION
State: IN

Complaint narrative:
Subject : URGENT Formal Dispute Demand for Immediate Removal of Inaccurate Navy Federal Credit Union Account This letter is a formal notice to dispute the inaccurate and damaging information being reported by Navy Federal Credit Union on my credit report, account number ending in XXXX, originally opened on XX/XX/XXXX. I have contacted your agency regarding this multiple times, and to date, there has been no corrective action or response within the required time frame. Therefore, I am demanding immediate deletion of this account from my credit report under the Fair Credit Reporting Act ( FCRA ). 

Errors and Violations in the Reporting : Continual Balance Reporting on Charged-Off Account : The account is marked as charged off as of XX/XX/XXXX, yet continues to report a balance of {$1700.00} monthly through XX/XX/XXXX. This is misleading and inaccurate under FCRA Section 623 ( a ) ( 1 ) ( A ) which prohibits furnishing inaccurate information.

Once charged off, the balance must not fluctuate or continue to show payment due activity unless actively being collected or sold to another party.

No 1099-C Cancellation of Debt Issued : Since {$1100.00} was written off, per the statement in the report, a 1099-C is required to be issued to me for tax purposes. No such form has been provided.

The IRS requires creditors to file a 1099-C if {$600.00} or more of debt has been canceled. Failing to do so while still claiming a charge-off status may be seen as tax reporting fraud or misrepresentation.

Failure to Update Account Information Accurately : The payment history reflects continuous CO ( charge-off ) reporting through XXXX, XXXX, and XXXX, which suggests active monthly charging or reporting instead of a static charge-off. This is a violation of FCRA guidelines, which state that negative information must be accurate and timely. 

Lack of Response from the Furnisher and Bureaus : I have disputed this account with all three major credit bureaus, and no evidence of proper reinvestigation or response within 30 days has been provided. This is a direct violation of FCRA Section 611, which requires a prompt and thorough reinvestigation of disputed items.

Reporting Past Credit Limit Balance : The credit limit is listed as {$1000.00}, but the balance reached {$1700.00}, which is 171 % utilization. While this may have occurred, continuing to report that amount on a charged-off account adds further negative weight to my credit, which is misleading and harmful. 

Inconsistent Status Updates : The " status updated '' date is listed as XX/XX/XXXX, yet the payment history continues into XXXX, indicating that the data is either not being maintained properly or is being manipulated. 

Legal Grounds for Removal : Under the Fair Credit Reporting Act ( FCRA ) : 602 ( A ) Consumers have the right to fair and accurate credit reporting.

623 ( a ) ( 1 ) ( A ) A data furnisher must not furnish inaccurate or incomplete information.

611 ( a ) ( 1 ) ( A ) A consumer has the right to dispute inaccurate information, and the CRA must reinvestigate within 30 days.

607 ( b ) CRA must follow reasonable procedures to ensure maximum possible accuracy.

Additionally, under 15 U.S. Code 1681n and 1681o, willful or negligent noncompliance with FCRA provisions entitles me to actual damages, attorney 's fees, and potentially punitive damages. 

Final Notice : If this account is not removed from my credit report immediately, I will proceed with : Filing formal complaints with the Consumer Financial Protection Bureau ( CFPB ), Federal Trade Commission ( FTC ), and State Attorney General. 

Considering legal action for violations of my rights under the FCRA and for emotional and financial damages sustained. 

This is your final opportunity to resolve this matter without further legal escalation.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation