Consumer complaint received 2025-05-09 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: Experian Information Solutions Inc.
State: TX

Complaint narrative:
Subject : Inaccurate Credit Reporting and Improper Debt Sale Experian Dispute To Whom It May Concern, I am writing to file a formal complaint against Experian regarding the improper handling of a credit dispute and the questionable reporting and sale of a debt previously charged off for tax purposes. 

On XX/XX/XXXX, at approximately XXXX XXXX, I submitted a dispute through Experian regarding an account originally held by XXXX XXXX. The status on my credit report for this account indicates Closed Written Off. 

However, I received a response from Experian on XX/XX/XXXX, stating that the dispute was completed. This extremely short turnaround time ( less than XXXX hours ) raises serious concerns about whether a proper and thorough investigation was conducted, especially given that I have verified the debt is now listed under a different entity, XXXX XXXX XXXX XXXX a debt buyer who has apparently acquired the account. 

When I contacted XXXX XXXX, I requested a Form 1099-C, which is issued when a debt is canceled or written off for tax purposes. I was informed that such a form exists for this account. Based on IRS regulations and relevant consumer protection laws, a creditor can not sell or assign a debt that has been canceled and reported as income to the IRS. Specifically : IRS Publication 4681 explains that when a debt is discharged and a 1099-C is issued, the creditor has effectively forgiven the debt and it is no longer collectible. 
Under the Fair Credit Reporting Act ( FCRA ), 15 U.S. Code 1681i ( a ), credit bureaus are required to conduct a reasonable investigation into disputes. Completing an investigation in less than XXXX hours especially involving a transferred or sold account does not appear to meet this standard. 
Additionally, FTC guidance and case law have established that reselling a canceled debt can constitute deceptive and unfair practices, especially if it results in continued collection efforts or credit reporting. 

Therefore, I believe Experian has failed in its duty to : 1. Conduct a legitimate investigation in response to my dispute, 2. Correct inaccuracies on my credit report, 3. Prevent the reappearance or double collection of canceled debt. 

I am requesting the CFPB to investigate this matter and ensure that : The account is accurately updated to reflect that the debt was canceled and should not have been sold, Experian is held accountable for failing to conduct a proper investigation, Any related collections or trade lines by XXXX XXXX XXXX XXXX are also reviewed for legitimacy and compliance. 

Please let me know if you need additional documentation. I am prepared to provide supporting call logs, letters, and any forms received from the original creditor. 

Sincerely, XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX  XXXX XXXX XXXX last 4 of ss # XXXX

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation