Consumer complaint received 2024-09-24 00:00:00
Product: Debt collection — Auto debt
Issue: Attempts to collect debt not owed — Debt was result of identity theft
Company: CAPITAL ONE FINANCIAL CORPORATION
State: CA

Complaint narrative:
I am a victim of identity theft, and Capital One has been reporting a fraudulent account opened in my name. Despite receiving three direct requests from me to investigate and stop reporting this fraudulent account to the credit reporting agencies ( CRAs ), Capital One continues to furnish false information. This has resulted in significant damage to my credit profile.

Violations : 1. 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) : Capital One continued to report the fraudulent account as accurate after receiving notice from me, on three occasions, that the information was incorrect.

2. 15 U.S.C. 1681s-2 ( a ) ( 6 ) ( B ) : Despite receiving an affidavit and FTC report proving identity theft, Capital One continues to furnish inaccurate information.

3. 15 U.S.C. 1681s-2 ( a ) ( 8 ) ( E ) & 15 U.S.C. 1681s-2 ( a ) ( 1 ) ( B ) : Capital One failed to respond to my dispute and did not investigate the fraudulent account within 30 days.

4. 15 U.S.C. 1681s-2 ( a ) ( 7 ) : Capital One failed to provide required notice that they would report negative information to my credit report within 30 days of reporting it.

5. 15 U.S.C. 1681g ( e ) : Capital One failed to provide business transaction records, including the application used to open the fraudulent account, after receiving my identity theft proof within 30 days.

6. 12 CFR 1022.42 : Capital One failed to maintain reasonable procedures to ensure the accuracy of information reported to the CRAs. They received multiple notices from me certifying identity theft but still reported inaccurate information.

7. 15 U.S.C. 1692e ( 2 ) ( A ) : Capital One misrepresented the nature of the debt by continuing to report it after receiving five notifications of identity theft, including proof of my address and affidavits.

8. 15 U.S.C. 1692c ( a ) ( 1 ) : Capital One has been contacting me outside of the legally permitted hours regarding a debt that does not belong to me. They have been in communication before 8 a.m. and after 9 p.m., which is a violation of the Fair Debt Collection Practices Act ( FDCPA ).

Cease and Desist Notice : If Capital One does not take immediate action to remove the fraudulent account and correct my credit reports, I hereby demand that you cease and desist from reporting this account to any credit reporting agencies. Continued reporting of this inaccurate information is causing significant harm to my credit and financial well-being.

Furthermore, Capital One must cease any and all further communication regarding this fraudulent debt. Pursuant to 15 U.S.C. 1692c ( c ) of the Fair Debt Collection Practices Act ( FDCPA ), any continued communication will be considered harassment, as you have been informed multiple times that this debt is not mine.

Failure to comply with this cease-and-desist request will leave me no choice but to pursue legal action, including filing a complaint with the Consumer Financial Protection Bureau ( CFPB ) and taking any necessary steps to protect my rights under the Fair Credit Reporting Act ( FCRA ) and other applicable laws.

Legal Violations and Penalties : 1. Fair Credit Reporting Act ( FCRA ) Violations : Under the FCRA, willful noncompliance can result in penalties of up to {$1000.00} per violation. This applies to each instance where Capital One knowingly reports inaccurate information or fails to investigate disputes properly.

Consumers also have the right to recover damages for emotional distress, attorney fees, and court costs under 15 U.S.C. 1681n ( willful violations ) and 15 U.S.C. 1681o ( negligent violations ).

2. Fair Debt Collection Practices Act ( FDCPA ) Violations : Each instance of improper communication ( e.g., calling outside of the legal hours of 8 a.m. to 9 p.m. ) can result in statutory damages up to {$1000.00} under the FDCPA ( 15 U.S.C. 1692k ).

The FDCPA also allows for recovery of actual damages, emotional distress, attorney fees, and costs.

3. Additional Penalties : Continued failure to investigate the fraudulent account could expose Capital One to civil liability under 12 U.S.C. 5531 ( a ), ( d ) ( 2 ) ( B ) and 5536 ( a ) ( 1 ) ( B ), as part of the Consumer Financial Protection Acts prohibitions on abusive acts or practices.

Each violation of 12 CFR 1022.42 for failing to maintain reasonable procedures in reporting accuracy can also lead to additional penalties.

Timeline and Details : I sent my first dispute notice to Experian and Capital One, requesting the removal of the fraudulent account and providing proof of identity theft as per 15 U.S.C. 1681g ( e ) ( 2 ) ( B ) and 15 U.S.C. 1681s-2 ( a ) ( 6 ) ( B ). Despite this, Capital One failed to conduct a reasonable investigation within 30 days as required by 15 U.S.C. 1681s-2 ( a ) ( 8 ) ( E ), and the fraudulent account remains on my credit report.

Capital One has also reported repossessing a vehicle, which was never communicated to me. They failed to adjust the balance on my credit report after supposedly receiving payments or repossessing the vehicle.

Their actions have violated the Fair Credit Reporting Act ( FCRA ) by failing to conduct proper investigations, report accurate account statuses, and follow the guidelines for responding to disputes under the CARES Act. These actions also violate the Consumer Financial Protection Acts ( CFPA ) prohibitions on abusive practices, taking advantage of my inability to protect my interests.

Conclusion : Immediate corrective action is required to prevent further legal violations. Should Capital One continue to furnish inaccurate information or engage in improper communication, I reserve the right to pursue legal remedies, including statutory and actual damages, under the relevant federal laws.

Company response to consumer: Closed with non-monetary relief