Consumer complaint received 2025-01-16 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: CarMax, Inc.
State: FL

Complaint narrative:
I am filing a formal complaint against CarMax Auto Finance regarding their ongoing violations of the Fair Credit Reporting Act ( FCRA ). These violations involve inconsistent reporting practices across credit bureaus and the misclassification of my retail installment agreement, which collectively constitute deceptive business practices. 

Inconsistent Reporting Across Credit Bureaus CarMax Auto Finance has removed the referenced account from my XXXX and XXXX credit reports following disputes. However, the same account remains active and verified on my XXXX report. This inconsistency is a blatant violation of the FCRA, which mandates furnishers to report accurate, complete, and uniform information across all consumer reporting agencies. 

This inconsistency directly harms my credit profile and erodes my confidence in CarMax Auto Finances compliance with federal regulations. The selective removal of this account from XXXX bureaus while maintaining inaccurate reporting on another demonstrates gross negligence and disregard for consumer rights. 

Misclassification of Contract Type CarMax Auto Finance has falsely classified my retail installment agreement as an auto loan on my consumer report. This misclassification is deceptive and constitutes a material misrepresentation of the nature of the transaction. 

Key Distinctions Between Auto Loans and Retail Installment Agreements : XXXX. Retail Installment Agreement : A retail installment agreement is a consumer credit transaction that governs the sale of the vehicle, including financing and repayment terms. 
It is not a direct loan but a purchase contract wherein the seller ( or financing partner ) retains a security interest in the vehicle. 
XXXX. Auto Loan : An auto loan is a direct loan from a lender to a borrower to purchase a vehicle outright. The lender holds a lien until repayment is complete. 

Why This Misclassification is Deceptive : By labeling my retail installment agreement as an auto loan, CarMax Auto Finance misrepresents the nature of the transaction, misleading consumers, lenders, and credit bureaus. 
This misrepresentation distorts the understanding of my financial profile, which can adversely impact creditworthiness and result in unfair credit decisions, such as increased interest rates or loan denials. 

Impact on Credit Reporting and Consumer Trust : Misclassification of account types affects credit scoring models and the evaluation of financial obligations. 
This deceptive practice undermines trust in CarMax Auto Finances reporting integrity and causes undue harm to consumers.

Resolution Sought I demand the immediate removal of this account from my XXXX credit report to rectify the following violations : XXXX. FCRA Non-Compliance : Failure to report consistent and accurate information across all credit bureaus. 
XXXX. Deceptive Practices : Misclassification of a retail installment agreement as an auto loan, which harms my creditworthiness. 

If this issue is not resolved promptly, I will escalate my complaint to the Federal Trade Commission ( FTC ) and pursue legal action for damages caused by these violations. 

This matter requires urgent attention, and I expect a resolution within 7 days of receipt of this complaint.

Company response to consumer: Closed with explanation