Consumer complaint received 2025-03-07 00:00:00
Product: Debt collection — Medical debt
Issue: Attempts to collect debt not owed — Debt was paid
Company: Mid-South Adjustment Co., Inc.
State: AR

Complaint narrative:
I am writing to formally lodge a complaint regarding the illegal reporting of a charge-off on my credit report by Mid-South Adjustment XXXX acting on behalf of XXXX XXXX  XXXX XXXX XXXX XXXX in violation of multiple consumer protection laws, including the Fair Credit Reporting Act ( FCRA ), the Fair Debt Collection Practices Act ( FDCPA ), and the Internal Revenue Code. Despite previous attempts to address these issues, the violations persist, and I am now requesting immediate intervention. 

XXXX. Clarification of Charge-Off Status and Ownership : The alleged debt, originally owed to XXXX XXXX XXXX  XXXX XXXX XXXX is being reported as charged off. However, I received conflicting statements regarding whether the debt is still owed by the original creditor or if it has been sold or assigned to a third party for collection. According to your response, the debt is still owned by the original creditor. This raises the following critical questions : If the debt is still owned by the original creditor, why is it reported as " charged off ''? 
Has the original creditor written off the debt for tax purposes? 
Is the original creditor still reporting the balance as due, or has it been removed from their records? 
Under the FCRA, furnishers of credit information are required to report accurate information ( 1681s-2 ). Reporting a balance as " charged off '' while simultaneously attempting to collect on it is illegal. This practice results in inaccurate credit reporting and potentially violates the law. I request that you clarify the ownership status of this debt and remove any misleading information from my credit report. It is illegal to report income on credit reports. 

2. Requirement for IRS Form 1099-C for Cancellation of Debt : According to IRS regulations ( 26 U.S. Code 6050P ), if a debt is charged off for {$600.00} or more, the original creditor must issue a Form 1099-C to the debtor. As this debt is marked as charged off, I request the following : Proof that the original creditor has issued a Form 1099-C for this debt, or proof that they did not issue one. 
Clarification as to whether the original creditor still considers this debt collectible. 
Immediate removal of any inaccurate or incorrect reporting associated with this charge-off.

If no Form 1099-C was issued, this could be a violation of IRS regulations and the FCRA, and I will seek further investigation by the IRS for tax fraud .

3. Third-Party Disclosure and Privacy Violations : You have indicated that the original creditor does not require my permission to disclose this debt under HIPAA. However, under the Fair Debt Collection Practices Act ( FDCPA ) 1692c ( b ), a debt collector can not disclose details of a debt to unauthorized third parties without my consent. I request the following : Evidence that my consent was provided for this disclosure to your agency. 
An explanation as to why my privacy rights were violated in this instance, including the disclosure of private financial information to a third party without my authorization.

Company public response: Company believes it acted appropriately as authorized by contract or law
Company response to consumer: Closed with explanation