Consumer complaint received 2025-02-14 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Repossession — Loan balance remaining after the vehicle is repossessed and sold
Company: STATE EMPLOYEES CREDIT UNION
State: NC

Complaint narrative:
This account was repossessed, charged off, and no 1099-C was issued, which violates federal tax and credit reporting laws. This dispute is submitted under the Fair Credit Reporting Act ( FCRA ), specifically 15 U.S.C. 1681i, which requires XXXX to conduct a reasonable reinvestigation of disputed items. 

During the repossession of my vehicle at XXXX XXXX in the morning, my life was threatened, and I was prevented from retrieving my vehicle. This act violated the law of maintaining peace. 

Under 26 U.S.C. 6050P, creditors are mandated to issue a 1099-C form to the borrower when a debt of {$600.00} or more is canceled, forgiven, or discharged.

The failure to issue a 1099-C indicates that the debt has been canceled, and XXXX is no longer entitled to attempt to collect on a canceled debt. 

XXXX or its agents are misrepresenting the status of the debt by claiming that I owe money on a canceled debt and violating the Fair Debt Collection Practices Act ( FDCPA ). 
XXXX charged off the debt but did not formally cancel or forgive it. They are still attempting to collect on the debt, but the lack of a 1099-C suggests that the debt has been canceled. 

The repossessed vehicle was sold, and the proceeds were applied to the loan balance, leaving me with a remaining balance or deficiency balance to pay. However, XXXX failed to issue a 1099-C, implying that they may have canceled the debt. Additionally, they did not adhere to proper repossession procedures, which invalidates the debt. I have the right to challenge the deficiency balance. 

XXXX violated the FCRA ( 15 U.S.C. 1681 ), which in turn reported the debt inaccurately to my credit report, negatively impacting my credit score and financial reputation. This has resulted in increased financial burden and distress. XXXX can not verify the debt ; it must be deleted under 15 U.S.C. 1681i ( a ) ( 5 ) ( B ). 

Following the repossession, I was not notified by XXXX of the time and location of the vehicle sale or auction, preventing me from reclaiming my vehicle. 
I am deeply distressed because I lost my camera that contained my daughters first year of life photographs and videos. 

Legal Basis for Dispute : 15 U.S.C. 1681b : Permissible purpose for accessing and furnishing credit information.

15 U.S.C. 1681c-2 : Blocking of information resulting from identity theft.

15 U.S.C. 1681i ( a ) ( 1 ) : Requirement to conduct a reasonable reinvestigation of disputed items.

15 U.S.C. 1681i ( a ) ( 6 ) ( B ) ( iii ) : Requirement to provide prompt notification of reinvestigation results.

15 U.S.C. 1681i ( a ) ( 5 ) ( B ) : Requirement to delete or modify unverifiable or inaccurate information.

15 U.S.C. 1681s-2 : Obligations of furnishers of information to provide accurate data.

15 U.S.C. 1681n & 1681o : Civil liability for willful or negligent noncompliance with the FCRA.

15 U.S.C. 1681e ( b ) : Duty to maintain maximum accuracy in credit reports.

15 U.S.C. 1681i ( a ) ( 5 ) : Requirement to correct or delete inaccurate, incomplete, or unverifiable information.

15 U.S.C. 1681i ( a ) ( 1 ) ( A ) : Requirement to conduct a thorough and reasonable reinvestigation.

15 U.S.C. 1681s-2 ( a ) : Prohibition on furnishing inaccurate information.

26 U.S.C. 6050P : Requirement to issue a 1099-C for canceled debt.

Company response to consumer: Closed with explanation