Consumer complaint received 2024-12-17 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: Experian Information Solutions Inc.
State: OH

Complaint narrative:
Re : Formal Complaint Regarding Illegal Reporting of Charged-Off Accounts as Income and Failure to Provide 1099 Forms I am writing to file a formal complaint against several companies that have unlawfully reported charged-off accounts as income on my credit report. This practice is not only illegal but also inaccurate and in violation of federal laws, including the Fair Credit Reporting Act ( FCRA ) and IRS regulations.

Issue 1 : Reporting Charged-Off Accounts as Income The companies in question are incorrectly reporting charged-off debts as " income '' on my credit report. According to the IRS, a charge-off is considered gross or ordinary income, and must be reported as such on tax returns via a 1099-C form. However, income can not and should not be reported on a consumer credit report. Doing so is both misleading and erroneous. 

Under the Fair Credit Reporting Act ( FCRA ), all information reported to credit bureaus must be accurate. Reporting a charge-off as income is a clear violation of this requirement, and as such, the inaccurate data must be corrected or removed immediately. I demand that these companies cease this illegal reporting and correct the information on my credit report without delay. 

Issue 2 : Failure to Provide 1099 Forms In addition, I have made repeated requests to these companies for 1099-C forms regarding the charged-off accounts, as required by the IRS for any canceled debt exceeding {$600.00}. Despite my requests, I have yet to receive these forms, leaving me unable to properly report this income when filing my taxes for the upcoming year. This failure to comply with IRS reporting requirements is creating a significant tax filing issue for me, which is unacceptable.

The failure to issue the necessary 1099-C forms is a direct violation of federal tax law, and I demand immediate action to ensure these forms are issued to me without further delay.

I am formally dispute inaccuracies appearing on my credit reports and request your assistance in ensuring compliance with the Fair Credit Reporting Act ( FCRA ) and related laws under Title 15 of the U.S. Code ( USC ).

Upon reviewing my credit reports from the three major credit reporting agencies, I have identified several inconsistencies, including : Incomplete account numbers Incorrect dates of account activity Discrepancies in reported balances or payment amounts Under the FCRA, specifically 15 U.S.C. 1681e ( b ), credit reporting agencies are required to follow reasonable procedures to assure maximum possible accuracy of the information reported. Furthermore, 15 U.S.C. 1681i ( a ) mandates a thorough investigation of disputed items when errors are brought to their attention.

Additionally, it is my understanding that information reported to the credit bureaus must be consistent across all reporting agencies. The presence of conflicting data between agencies indicates a failure to meet the FCRAs accuracy requirements.

I respectfully request that the CFPB ensure the credit reporting agencies investigate and correct these inaccuracies. I have attached supporting documentation, including copies of my credit reports and details of the discrepancies for your review.

Thank you for your attention to this matter. Please let me know if further documentation or clarification is needed.

Request for Immediate Action : 1. Investigate the illegal reporting of charged-off accounts as income and ensure these companies comply with the Fair Credit Reporting Act by removing inaccurate data from my credit report.

2. Demand that these companies issue the required 1099-C forms for the canceled debts, as stipulated by the IRS, so I can properly file my taxes.

3. Ensure that the companies involved are held accountable for these violations and take the necessary steps to prevent this from happening to other consumers.

I expect prompt and effective action to resolve these issues. If the companies involved fail to take corrective action immediately, I will pursue all available legal avenues to protect my rights. 
I am listing all the companies that are reporting income on my credit report below. 
XXXX. XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX Please contact me directly if you need any additional information or documentation to facilitate the investigation. I trust that the Consumer Financial Protection Bureau will take swift and appropriate action to resolve this matter. 

Thank you for your immediate attention to this serious issue. 
Sincerely,

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation