Consumer complaint received 2024-11-05 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Information belongs to someone else
Company: Experian Information Solutions Inc.
State: FL

Complaint narrative:
On my credit report there is a charged off account from XXXX XXXX XXXX. The account number for that credit card is XXXX. I have filed numerous disputes stating that I never held this account and that this account should be deleted from my credit report. 
I even provided evidence that I was a victim of identity theft but yet this account continues to be reported on my credit report. On my credit report it says that this discover account which has the account number XXXX was charged off. 

Subject : Request for Removal of Charged-Off Account Due to Non-Receipt of Form 1099-C and Misreporting of Debt Income Dear Sir or Madam, I am writing to formally request the removal of a charged-off account from my credit report, as the company involved failed to meet specific legal requirements regarding the reporting and taxation of charged-off debt. The account was reported as charged off ; however, I have not received a Form 1099-C for this debt, which is required by law for debt cancellation amounts to be considered as income.

Under IRS guidelines ( Publication 4681, Canceled Debts, Foreclosures, Repossessions, and Abandonments ), creditors who cancel a debt over {$600.00} are required to issue a Form 1099-C to the debtor for tax purposes. This form serves as an official record of the forgiven debt amount that may be considered taxable income. Since I never received such a form, I am left to assume that the creditor has either neglected this requirement or has not actually canceled the debt for tax purposes. Therefore, it should not remain on my credit report as an outstanding obligation.

Furthermore, according to the Fair Credit Reporting Act ( FCRA ) ( 15 U.S. Code 1681 ), consumers have the right to fair and accurate reporting. Reporting a charged-off account as an outstanding balance when it has, in fact, been charged offand without issuing a Form 1099-Cis misleading and detrimental to my creditworthiness. Creditors are not permitted to seek double recovery on a charged-off account, including listing it on my report as both an outstanding balance and as a charge-off eligible for a tax write-off.

Case Law and Legal Precedents have further clarified that charged-off debt, when considered canceled or forgiven by the creditor, should not appear as an active obligation on consumer credit reports, particularly when the creditor has sought tax relief on the same debt amount. These cases underscore the consumers right to accurate credit reporting and to prevent unjust penalties resulting from misreported debts.

Due to these discrepancies, I respectfully request that the charged-off account in question be removed from my credit report to accurately reflect my financial standing. The presence of this account is both misleading and unfair, given the lack of compliance by the creditor with IRS reporting requirements.

If the credit reporting agency is unwilling to remove this entry, please provide a written explanation, along with any documentation you have received from the creditor that supports its continued reporting.

The law that requires a creditor to issue a Form 1099-C ( Cancellation of Debt ) is found under the Internal Revenue Code ( IRC ) Section 6050P. This section mandates that creditors must file a 1099-C when they cancel a debt of {$600.00} or more for a debtor, as this canceled debt is considered taxable income to the debtor.

When a debt is " charged off '' by a creditor, it means the creditor has determined it is uncollectible and writes it off as a loss on their books Penalties for Not Issuing a 1099-C If a creditor fails to issue a 1099-C when required, they may face penalties from the Internal Revenue Service ( IRS ) . Penalties depend on the timing and nature of the failure : Failure to File : Fines range from {$60.00} to {$310.00} per form for not issuing a 1099-C, depending on how late the form is provided.

Intentional Disregard : If a creditor intentionally disregards the requirement to file the 1099-C, they may be fined {$630.00} per form, with no maximum limit on the total penalty amount.

Additional Consequences : The IRS may also impose additional interest charges on unpaid penalties, which can further increase costs. 

Thank you for your attention to this matter. I look forward to a prompt and fair resolution.

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