Consumer complaint received 2024-10-20 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: NAVY FEDERAL CREDIT UNION
State: NJ

Complaint narrative:
COMES NOW, XXXX XXXX XXXX, Living, Breathing, Sentient Man bring forth this claim against Navy Federal Credit Union ( `` NFCU '' ) for violations of my rights under the Fair Credit Reporting Act ( " FCRA '' ), specifically pertaining to the furnishing of false, inaccurate, and misleading information on my consumer report. 

1. Violation of 15 U.S. Code 1681s2 ( 7 ) ( A ) : Responsibilities of Furnishers of Information to Consumer Reporting Agencies NFCU has failed to adhere to its responsibilities as a furnisher of information. Under 1681s2 ( 7 ) ( A ), furnishers are required to provide accurate information to consumer reporting agencies. I have identified multiple instances where NFCU reported incorrect information regarding my credit account, which has adversely affected my credit score and caused me significant distress. 

2. Violation of 15 U.S. Code 1681c ( 5 ) : Requirements Relating to Information Contained in Consumer Reports NFCU has also contravened 1681c ( 5 ), which mandates that information regarding accounts in collection must be reported accurately. Notably, NFCU charged off my account but failed to provide me with a copy of the Form 1099-C, which is necessary for my tax filings. According to the Internal Revenue Service, a charged-off amount is considered taxable income that should be reported on my 1040 tax return, not on a consumer report. This misreporting further misrepresents my financial status and creditworthiness. 

3. Violation of 15 U.S. Code 1681e ( b ) : Compliance Procedures Under 1681e ( b ), NFCU is obligated to maintain reasonable procedures to ensure maximum possible accuracy of the information it furnishes. The false and misleading information provided in my report indicates a lack of such procedures, resulting in a significant breach of the FCRA. 

4. Violation of 15 U.S. Code 1681n : Civil Liability for Willful Noncompliance NFCUs actions constitute willful noncompliance with the FCRA, as they knowingly and willingly reported inaccurate information regarding my account status. Under 1681n, I am entitled to seek civil liability for these violations, which have caused me both financial harm and emotional distress. 

Supporting Case Law Additionally, in XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ), the court found that a data furnisher can be held liable for reporting inaccurate information if it fails to conduct a reasonable investigation after receiving a consumer dispute, reinforcing the obligations of furnishers under the FCRA. 

Furthermore, in XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX ( XXXX XXXX. XX/XX/XXXX ), the court emphasized that data furnishers must be proactive in ensuring the accuracy of the information they report, highlighting the legal expectation for compliance with the FCRA. 

In XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX ( XXXX ), the Supreme Court underscored the necessity for accuracy in credit reporting and the implications of inaccuracies on consumer rights. The court emphasized that consumers must be protected from the repercussions of erroneous information, as such inaccuracies can severely impact their ability to obtain credit. 

Lastly, in XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX XXXX, XXXX ), the court ruled that furnishers of information have a duty to ensure that the information they provide is accurate and that consumers have the right to seek redress when this duty is not fulfilled.

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