Consumer complaint received 2025-04-03 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: STATE EMPLOYEES CREDIT UNION
State: VA

Complaint narrative:
Dear State Employees Credit Union, Subject : Inquiry Regarding the Securitization of Charged-Off Credit Card Debt of account XXXX. 

I hope this letter finds you well. I am writing to inquire about the securitization processes related to charged-off credit card debt, particularly in light of applicable consumer law codes. As an individual concerned with consumer rights and financial transparency, I believe it is important to understand how these practices affect consumers and their rights under the law.

Securitization involves pooling various types of debt, including charged-off credit card debt, and converting them into securities that can be sold to investors. This process raises several questions regarding the treatment of consumers whose debts are included in these pools, especially considering the Fair Debt Collection Practices Act ( FDCPA ) and the Truth in Lending Act ( TILA ). 

Under the FDCPA, consumers are afforded certain protections against abusive debt collection practices. It is crucial to ascertain how these protections are maintained when charged-off debts are securitized. Specifically, I would like to understand how the original creditors and subsequent debt purchasers comply with the FDCPA when attempting to collect on debts that have been securitized. 

Furthermore, the TILA mandates clear disclosure of credit terms and conditions. When credit card debt is charged off and subsequently securitized, what measures are taken to ensure that consumers are adequately informed of their rights and the status of their debts? Transparency in this process is vital for consumer protection, and I would appreciate any insights into how these laws are upheld in the context of securitization. 

Additionally, I am interested in understanding the implications of securitization on consumers ' credit reports and scores. How does the sale of charged-off debt affect a consumers credit history, and what recourse do consumers have if they believe their rights have been violated during this process? 

I appreciate your attention to these important matters and look forward to your response. Understanding the intersection of securitization and consumer law is essential for ensuring that consumers are treated fairly and that their rights are protected. 

Please validate this information reporting with a form 1099-C that you all fail to supply me with according to the IRS Internal Revenue Service ( IRS ) requires creditors to report canceled debts of {$600.00} or more using this form, as outlined in IRS Publication 4681 and the Internal Revenue Code Section 6050P. This can be sent via email or via USPS when you reply with documents of the status of this account. 

I have added an example how you have been reporting this account via XXXX, XXXX, and XXXX for years I have tried to correct this error. My next step is to contact the IRS I know there are penalties for not providing a 1099-C to report the Loss as income. 

I have supplied XXXX, XXXX, and XXXX with the same information and complaint. 

Thank you for your time and consideration.

Company response to consumer: Closed with explanation