Consumer complaint received 2025-04-22 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: CarMax, Inc.
State: GA

Complaint narrative:
I am filing this formal complaint against CarMax Auto Finance for knowingly and willfully furnishing inaccurate and misleading credit information in violation of the Fair Credit Reporting Act ( FCRA ), specifically 15 U.S.C. 1681s-2 ( b ).

Despite multiple disputes and formal requests, CarMax Auto Finance continues to report an account associated with my name as open with a balance, even though CarMax admitted in a formal response to CFPB Complaint No. XXXX dated XX/XX/XXXX, that : The account was charged off for accounting purposes on XX/XX/XXXX, and My last payment was made on XX/XX/XXXX. 

According to the Metro 2 Credit Reporting Resource Guide, which governs industry standards for reporting to consumer reporting agencies, a charged-off account must be reported as closed. Maintaining an open designation on a charged-off and inactive account constitutes materially misleading credit reporting. 

This misrepresentation causes serious harm by falsely indicating an ongoing credit obligation, negatively impacting my credit utilization, and damaging my ability to obtain credit.

CarMaxs continued furnishing of this inaccurate information, despite notice of dispute, violates their duties under 15 U.S.C. 1681s-2 ( b ), which mandates a furnisher to conduct a reasonable investigation and promptly correct or delete inaccurate or unverifiable information. 

Supporting Case Law : XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) The court held that furnishers must conduct a reasonable investigation under the FCRA and that failure to correct inaccuracies can result in liability. 
XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) XXXX the principle that credit reporting must not only be accurate but must not be misleading or incomplete. 
XXXX v. XXXXXXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) Held that a furnisher who fails to update or correct misleading credit information XXXX be liable for actual damages under 1681s-2 ( b ). 
XXXX v. XXXX & XXXX, XXXX, XXXX XXXX XXXX ( XXXX XXXX XXXXXXXX ) Clarified that a furnishers duty under XXXX2 ( b ) includes correcting errors and informing all consumer reporting agencies of the corrected information. 

Additional Facts : I suffered an adverse action as a result of this inaccurate credit reporting, evidenced by a formal denial letter from XXXX XXXX Lending dated XX/XX/XXXX, which cites both Experian and TransUnion as the consumer reporting agencies relied upon. 
Experian continues to report repeated CO ( charge-off ) notations each month after the charge-off, inaccurately inflating the severity of the account status and creating the false impression of ongoing defaults. 
TransUnion and Equifax report the account with no payment history at all, which demonstrates further inconsistency and incomplete reporting by CarMax Auto Finance. 
None of the credit bureaus properly reflect the account as closed, and all reflect materially misleading or incomplete data, causing financial harm and credit denials.

This complaint constitutes my final good faith effort to resolve this matter administratively. If this account is not corrected in full within ten ( 10 ) days of receipt of this complaint, I will move forward with formal legal proceedings. I already have a lawsuit prepared for filing in federal court and/or arbitration as permitted under the FCRA and the terms of any applicable agreements.

Company response to consumer: Closed with explanation