Consumer complaint received 2024-12-18 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problems at the end of the loan or lease — Problem while selling or giving up the vehicle
Company: CarMax, Inc.
State: TN

Complaint narrative:
XX/XX/year> CarMax Financial Services Subject : Final Demand to Cease Collection Efforts, Address 1099-C Compliance, and Delete Inaccurate Information from XXXX To Whom It May Concern : This is my third correspondence regarding your continued violations of federal law concerning an alleged debt. Despite being sent a formal Cease and Desist letter under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692c ( c ), you persist in contacting me daily regarding a debt you claim has been " written off. '' Additionally, you have failed to comply with Internal Revenue Service ( IRS ) regulations requiring the issuance of a 1099-C Cancellation of Debt Form for debts that have been discharged or deemed uncollectible.

This letter serves as a final demand for you to cease all collection efforts, including phone calls, and to delete all reporting of this alleged debt from XXXX, as it is inaccurate, unverifiable, and inconsistent with your claim of writing off the debt.

Failure to Issue a 1099-C Under the Internal Revenue Code ( IRC ) 6050P, creditors are required to issue a 1099-C when a debt of {$600.00} or more is canceled, discharged, or otherwise deemed uncollectible, and the creditor stops pursuing payment. Per the IRS, the issuance of a 1099-C is necessary when : 1. The creditor makes a decision to cancel or discharge the debt.

2. There is no longer an intent to collect the debt or engage in collection efforts. 
3. The statute of limitations for collection has expired, or the debt is written off for tax purposes.

By failing to issue a 1099-C, you are potentially in violation of federal tax reporting laws, which may expose you to penalties from the IRS. Furthermore, any continued collection efforts on a debt you have represented as written off are contradictory and misleading, constituting a violation of the FDCPA, 15 U.S.C. 1692e ( 2 ) ( A ), which prohibits false representations of the character, amount, or legal status of a debt. 
Reporting to XXXX Your inconsistent reporting to XXXX, while the same information is absent from other credit bureaus, indicates a failure to comply with the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681e ( b ), which requires information reported to credit bureaus to be accurate and complete. The continued reporting of this alleged debt, despite being written off and without the issuance of a 1099-C, is not only inaccurate but also misleading.

Legal Consequences If you fail to resolve these issues within 10 days of receiving this letter, I will pursue the following actions : 1. File complaints with the Consumer Financial Protection Bureau ( CFPB ), the Federal Trade Commission ( FTC ), and the Internal Revenue Service ( IRS ) regarding : o Your failure to comply with tax reporting obligations under IRC 6050P.

o Your repeated violations of the FDCPA by continuing collection calls after being sent a Cease and Desist letter.

o Your inaccurate reporting of this alleged debt to XXXX, in violation of the FCRA. 
2. Initiate legal action seeking statutory damages under : o 15 U.S.C. 1692k for violations of the FDCPA, entitling me to up to {$1000.00} in statutory damages, plus actual damages, attorneys fees, and court costs.

o 15 U.S.C. 1681n/o for willful or negligent noncompliance with the FCRA, entitling me to damages, punitive damages, and attorneys fees. 
3. Notify XXXX to dispute the account and provide evidence of your noncompliance, which will strengthen my claim for deletion of this inaccurate information.

Demand for Immediate Action I demand the following immediate actions : 1. Cease all collection calls and communications regarding this alleged debt.

2. Issue a 1099-C Cancellation of Debt Form, if you have indeed written off this debt.

3. Delete all reporting of this debt from XXXX due to its inaccuracy and noncompliance with federal laws. 
Your failure to comply with these demands will result in further legal action, as outlined above. 
Sincerely, XXXX XXXX Enclosures : 1. Copy of Cease and Desist letter.

2. Proof of prior correspondence. 
XX/XX/year> CarMax Financial Services Subject : Demand for Compliance with Federal and Tennessee State Laws Regarding Debt Collection and Reporting Practices To Whom It May Concern : I am writing to address several legal violations in your handling and reporting of an alleged debt. Your claim that the debt is written off but not accompanied by a 1099-C Cancellation of Debt Form raises concerns under federal law. Additionally, your continued efforts to pursue or report this debt violate the statute of limitations as established under Tennessee law.

Violation of Tennessee Statute of Limitations Under Tennessee Code Annotated 28-3-109 ( a ) ( 3 ), the statute of limitations for pursuing legal action on a debt is four ( 4 ) years for written contracts such as those related to vehicle financing. After the expiration of this time frame : You are barred from taking legal action to collect the debt.

Continued collection efforts or reporting of this debt may constitute a violation of Tennessees Consumer Protection Act ( TCA 47-18-104 ), which prohibits deceptive or unfair practices in consumer transactions.

Since the statute of limitations on this debt has expired, any continued collection activity or reporting to credit bureaus is legally baseless and misleading.

Federal Violations : 1099-C and Credit Reporting Accuracy The Internal Revenue Code 6050P mandates that a creditor must issue a Form 1099-C to both the debtor and the IRS when a debt of {$600.00} or more is canceled, written off, or deemed uncollectible. Your failure to issue a 1099-C for this alleged debt is a violation of federal tax reporting law.

Furthermore, the continued reporting of this expired debt to credit bureaus violates the Fair Credit Reporting Act ( FCRA, 15 U.S.C. 1681e ( b ) ), which requires creditors to ensure all reported information is accurate and not misleading. Reporting a debt as written off without issuing a 1099-C or acknowledging the expiration of the statute of limitations creates a materially inaccurate representation of the debts status.

Demand for Immediate Action To resolve this matter, I demand the following actions : 1. Delete all reporting of this alleged debt from credit bureaus, including XXXX, as the debt is time-barred under Tennessee law and inaccurately reported. 
2. Cease all collection efforts, including phone calls, emails, and other forms of communication, as required under the Fair Debt Collection Practices Act ( FDCPA, 15 U.S.C. 1692c ) upon receipt of a cease-and-desist notice.

3. Issue a 1099-C Cancellation of Debt Form, if applicable, to comply with federal law.

4. Provide written confirmation of these actions within 10 days of receiving this letter.

Consequences for Noncompliance Should you fail to comply with these demands, I will take the following actions : 1. File a complaint with the Tennessee Attorney General for violations of state consumer protection laws.

2. Report your noncompliance to the Consumer Financial Protection Bureau ( CFPB ) for violations of the FCRA and FDCPA.

3. File a formal complaint with the Internal Revenue Service ( IRS ) regarding your failure to issue a 1099-C.

4. Pursue legal remedies, including but not limited to : o Claims under FCRA, 15 U.S.C. 1681n and 1681o for willful or negligent noncompliance.

o Claims under FDCPA, 15 U.S.C. 1692k for violations of fair debt collection practices.

Conclusion This letter serves as a final opportunity to rectify these violations. Failure to address this matter promptly will leave me no choice but to pursue all available legal remedies to protect my rights. 
Sincerely, XXXX XXXX Enclosures : 1. Copy of Cease-and-Desist Notice 2. Relevant Statutory References.

Company response to consumer: Closed with explanation