Consumer complaint received 2025-04-13 00:00:00
Product: Vehicle loan or lease — Loan
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: CAPITAL ONE FINANCIAL CORPORATION
State: AZ

Complaint narrative:
To Whom It May Concern, This letter concerns my Capital One Auto Loan account ending in XXXX, originally opened on XXXX XXXX, XXXX, and **charged off with a balance of $ XXXX. Your records also indicate a **past-due balance of {$44000.00} as of XXXX XXXX, with the charge-off occurring prior to that. 

The account has been **closed and charged off**, with ** {$44000.00} written off** as of at least XXXX XXXX, and no new activity reported since. According to your own reporting and federally mandated banking standards, this account was classified as a **loss** and removed from your books. Despite this, I have **not received a Form 1099-C**, which is required by federal law under these circumstances. 

Per **IRS Code 26 U.S.C . 6050P**, a lender must issue a **Form 1099-C** for any canceled debt of {$600.00} or more when a qualifying **identifiable event** occurs. These events include, but are not limited to : - A formal discharge or cancellation of the debt, - A charge-off for accounting purposes, - A cessation of collection activity or sale of the debt to a third party.

Additionally, **FDIC regulations** require that creditors **charge off delinquent installment loans at 120 days**, and revolving credit accounts by **180 days** of nonpayment. Once charged off, the debt is deemed **uncollectible** for accounting purposes, and is typically removed from the creditors active bookstriggering a reportable cancellation event for IRS purposes XXXX 

Your failure to issue the legally required 1099-C in connection with this account, while continuing to report the debt and implying collection efforts, constitutes a **misrepresentation** of its actual status. This behavior is deceptive, and potentially **fraudulent**, as it obscures the true nature of the debt and violates your **federal tax reporting obligations**.

Accordingly, I am demanding the following within **10 business days** : 1. Written confirmation of the date the account was officially charged off and the amount written off ; 2. An explanation for your failure to issue a 1099-C as required by IRS regulations ; 3. A copy of any documentation showing sale or assignment of the debt to a third party ( if applicable ) ; 4. Full accounting records for the account, including post-charge-off activity.

If I do not receive a response within the time frame provided, I will take further steps including : - Filing formal complaints with the **IRS** , **CFPB**, and **FTC** ; - Reporting your actions to the **State Attorney General** for investigation into consumer fraud ; - Initiating a claim in **small claims court** for misrepresentation, negligent reporting, and emotional distress. 

I remain open to resolving this matter professionally and amicably, but I expect Capital One Auto Finance to comply with the law and be transparent about its handling of this account. 

Sincerely, XXXX XXXX

Company response to consumer: Closed with explanation