Consumer complaint received 2025-07-23 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CITIZENS FINANCIAL GROUP, INC.
State: CA

Complaint narrative:
Citizens Pay LOC Charge-Off Reporting Violation Creditor/Furnisher : Citizens Pay LOC\ Account Number : XXXX Bureaus Involved : XXXX XXXX XXXX  Complaint Summary : I am filing this complaint against Citizens Pay LOC for violating multiple provisions of federal law by continuing to report a charged-off account on my consumer credit reports. 
This account ( XXXX ) was charged off, which under IRS Code Section 431, is treated as gross or ordinary income to the original creditor. Income is not permitted to be reported to any consumer reporting agency. Therefore, this reporting is not only inaccurate, but also illegal under federal guidelines and must be removed. 

Background : I disputed this account with Citizens Pay LOC on XX/XX/year> and followed up by sending a formal dispute via certified mail to their XXXX XXXXXXXX on XX/XX/year> Despite these efforts, Citizens Pay verified the account without providing any documentation or proper validation. 
This is a violation of the Fair Credit Reporting Act ( FCRA ).

Violations Committed : IRS Code 431 Reporting cancelled/charged-off debt as a derogatory trade-line is a misclassification of income that is not authorized for credit reporting.

FCRA 15 U.S.C. 1681g ( a ) \nCitizens Pay failed to provide me with a full file disclosure when requested. Partial or selective disclosure violates my right to view the complete file.

FCRA 15 U.S.C. 1681i ( a ) \nThe reinvestigation was neither thorough nor verifiable. Citizens Pay verified the account without any proof, which is not a reasonable investigation.

FCRA 15 U.S.C. 1681s-2 ( b ) \nFurnishers must correct or delete inaccurate information after receiving a dispute. Citizens Pay has failed to comply.

FCRA 15 U.S.C. 1681e ( b ) \nCredit bureaus must maintain maximum possible accuracy. Continuing to report this account violates that duty.

FCRA 15 U.S.C. 1681A ( 2 ) ( a ) ( I ) states that the consumer report does not include information solely as to transaction or experiences ( payment history, Charge off status ), between the consumer, my self and the person ( Citizens Pay ) shall not furnish any information relating to a consumer me, to any consumer reporting agency.

What I Am Requesting : I demand the immediate and permanent deletion of this account from my credit reports with XXXX XXXX XXXX XXXX due to : Its classification as income, which is not legally reportable, The lack of verification, and Clear non-compliance with FCRA requirements. 
I am also requesting the CFPB to investigate this matter in full and hold Citizens Pay accountable for violating my rights under federal law. 
Any response or lack thereof from Citizens Pay Supporting Evidence ( uploaded/attached to complaint ) : Copy of dispute letter sent on XX/XX/year> USPS certified mail receipt dated XX/XX/year> FOLLOW UP VERIFICATION sent on XXXX XX/XX/year> USPS certified mail receipt dated XX/XX/year> Tracking Number : XXXX Screenshot of account on credit report showing charge-off Any response or lack thereof from Citizens Pay

Company response to consumer: Closed with explanation