Consumer complaint received 2025-01-31 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: CAPITAL ONE FINANCIAL CORPORATION
State: MI

Complaint narrative:
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXX/XX/year> Capital One Auto Finance XXXX Capital One XXXX XXXX XXXX XXXX  United States Re : Dispute Regarding Repossessed Vehicle Loan Account XXXX vin number XXXX To Whom It May Concern, I am formally disputing the outstanding balance being reported on my credit file and any attempts to collect on a debt that has already been charged off and written off by Capital One Auto Finance XXXX The circumstances surrounding this matter involve the repossession and subsequent sale of my vehicle, along with the tax write-off conducted by Capital One, which legally prohibits further collection attempts on the same debt. 

**Factual Summary : ** 1. My vehicle was repossessed by Capital One Auto Finance. 
XXXX. Capital One then sold the vehicle at auction or otherwise disposed of it. 
XXXX. Capital One subsequently performed a tax write-off on the remaining loan balance. 
XXXX. Despite this, either Capital One or a third-party collection agency is attempting to collect the balance, which is legally impermissible. 

**Legal Basis for Dispute : ** According to the **IRS regulations ( 26 U.S. Code 61 ( a ) ( 12 ) ) **, when a lender writes off a debt for tax purposes, they have forgiven the debt, meaning that the debtor ( myself ) is not legally responsible for further payment. Additionally, under the **Fair Debt Collection Practices Act ( FDCPA, 15 U.S. Code 1692 et seq. ) **, continued collection on a debt that has been discharged or written off can constitute unfair and deceptive practices. Furthermore, attempting to collect on a debt that has been charged off and sold violates the provisions of the **Fair Credit Reporting Act ( FCRA, 15 U.S. Code 1681 et seq. ) **, as such a debt should no longer be legally enforceable.

Additionally, under the **Uniform Commercial Code ( UCC Article 9, Section 9-615 ) **, a lender must properly account for and apply proceeds from the sale of repossessed collateral to the balance owed, which further limits or eliminates any remaining obligation on my part.

**Request for Resolution : ** Given the above, I am requesting the following actions : 1. Cease and desist all collection activities related to this alleged debt. 
XXXX. Remove any and all negative credit reporting related to this invalid debt from my credit file. 
XXXX. Provide a detailed written explanation regarding the collection attempts, including an itemized accounting of the alleged remaining balance and an explanation as to why collection efforts continue despite the tax write-off. 
XXXX. Provide written confirmation that Capital One and/or any affiliated collection agencies will no longer attempt to collect this debt. 

Failure to comply with my request may result in legal action, including but not limited to a complaint with the **Consumer Financial Protection Bureau ( CFPB ) **, the **Federal Trade Commission ( FTC ) **, and potential civil litigation. 

Please respond to this dispute in writing within 30 days from the date of this letter. 

SincerelyXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  **CC : ** [ Collection Agency, if applicable ] **CC : ** [ Attorney, if applicable ] **CC : ** [ Consumer Financial Protection Bureau , if filing a complaint ]

Company response to consumer: Closed with explanation