Consumer complaint received 2025-04-07 00:00:00
Product: Debt collection — Auto debt
Issue: False statements or representation — Attempted to collect wrong amount
Company: CarMax, Inc.
State: SC

Complaint narrative:
Follow-Up to CFPB Complaint No. XXXX Inaccurate and Incomplete Credit Reporting by CarMax Auto Finance Dear CFPB, I am writing in response to CarMax Auto Finances reply to my original complaint submitted on XX/XX/year> ( CFPB Case No. XXXX ). I appreciate the opportunity to clarify my ongoing concerns regarding the inaccurate and incomplete reporting of this account on my credit file. 

CarMax claims that the information reported is accurate and that the account was charged off solely for accounting purposes. However, their response fails to adequately address the following issues : 1. Failure to Provide Verification of the Alleged Debt CarMax did not supply a full breakdown of the balance they claim is due. There is no itemization of : Principal vs. interest Late fees, repo-related costs, or post-charge-off accruals Any payments made before or after charge-off, including insurance or auction proceeds Under 15 U.S. Code 1692g and the Fair Credit Reporting Act ( FCRA ), a data furnisher must report complete and accurate information. A lump-sum balance without itemization or supporting documentation is neither complete nor verifiable. 

2. Permissible Purpose and Continued Reporting After Repossession CarMax asserts it is allowed to report the account under FCRA. However, after repossession and recovery, there is serious concern over whether they retain a valid claim of ownership of the account, especially without showing transfer of title, settlement terms, or account reconciliation. 

If the debt was internally resolved or sold, continued reporting may violate the permissible purpose requirement under FCRA 604. 

3. Lack of 1099-C Does Not Justify Ongoing Reporting CarMax states no 1099-C was issued because the debt is not canceled. However, the absence of a 1099-C does not override my right to dispute inaccurate or unverifiable reporting. 

The charge-off designation alone triggers heightened scrutiny. If the debt is not being actively collected or pursued legally, then the reporting may no longer serve a legitimate or permissible purpose under the FCRA. 

4. Failure to Accurately Reflect Dispute Status CarMax claims they updated the credit file to reflect that the account is " disputed. '' However, I have reviewed my credit reports and found no such notation appearing from any of the major CRAs, which violates FCRA 623 ( a ) ( 3 ).

Request for Relief I respectfully request the CFPB require CarMax to : Provide a complete itemized breakdown of the alleged balance Identify the current legal status of the debt ( e.g., sold, resolved, internal write-off ) Justify their continued furnishing of this account under FCRA with supporting documentation Ensure that the account is properly flagged as disputed across all credit reporting agencies Alternatively, I request the account be deleted from my credit file due to insufficient verification, failure to reflect accurate dispute status, and potential violations of the FCRA.

Thank you for your continued assistance in reviewing this matter.

Company response to consumer: Closed with explanation