Consumer complaint received 2025-08-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: EQUIFAX, INC.
State: PA

Complaint narrative:
Subject : Dispute of Charged-Off Auto Loan Reporting and Ownership Validation Summary : I am filing a formal complaint against XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ) for continuing to report a charged-off auto loan to the credit bureaus despite possible securitization, sale, and/or cancellation of the debt. I dispute the accuracy of this tradeline under the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) and request immediate investigation and action by the CFPB.

-- - Detailed Background & Supporting Evidence : 1. Securitization of the Loan Contract ( Ownership Transferred ) According to multiple SEC filings, XXXX XXXX XXXX routinely sells retail auto loan contracts into asset-backed securities ( ABS ) via trusts such as XXXX XXXX  XXXX Trust 2024-B. These sales involve the transfer of legal title to the receivables, including both the payment rights and the underlying vehicle liens. 

Source : > The seller will sell and assign to the depositor all right, title and interest of the seller in and to the receivables, including all security interests in the financed vehicles. 
XXXX XXXX Receivables Trust 2024-B, SEC Form 424 ( b ) ( 5 ), XX/XX/year> ( fintel.io ) This raises the question : If the account has been sold and derecognized from XXXX XXXX  balance sheet, do they retain any legal right to continue reporting the tradeline?

-- - 2. Servicing Revenue Creates Profit After Sale ( Double Dipping? ) Despite no longer owning the loan, XXXX XXXX XXXX ( via HCA ) continues to profit through servicing fees collected on behalf of the trust or investors. 

Source : XXXX The Servicing Fee will be equal to 1.00 % per annum of the Aggregate Principal Balance of the Receivables. 
Sale and Servicing Agreement, XXXX XXXX XXXX XXXX XXXX ( contracts.justia.com ) This means XXXX can still collect revenue after selling the debt, which could create a financial incentive to continue reporting the account negatively even when ownership and legal collection rights no longer exist.

-- - 3. Charge-Off and Possible IRS 1099-C Debt Cancellation SEC filings show XXXX XXXX regularly charges off bad auto loans, potentially issuing IRS Form 1099-C for canceled debt. These charge-offs are disclosed as part of their financial risk and performance data.

Source : > Gross charge-offs on XXXX-branded receivables were {$110.00} XXXX in XXXX XXXX, representing a net charge-off rate of 1.19 %. 
XXXX XXXX XXXX Trust XXXX Prospectus Supplement ( fintel.io ) If XXXX charged XXXX the debt and issued a 1099-C, the IRS would treat that debt as canceled. According to IRS Regulation 6050P, creditors who file a 1099-C have no further right to collect or report the balance as owed.

-- - Legal Violations Under the Fair Credit Reporting Act ( FCRA ), 15 U.S. Code 1681s-2 ( b ) : Furnishers must investigate disputed information and ensure it is complete and accurate. 

If XXXX no longer owns the debt or has cancelled it via charge-off or securitization, continued reporting may be inaccurate or misleading.

Under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S. Code 1692g ( b ) : If the consumer disputes the validity of the debt in writing, the collector must provide verification. 

XXXX has failed to validate or provide ownership documentation upon request, violating this provision. 
Under GAAP & FASB 140 Derecognition Rules : Once a receivable is sold and derecognized from financial statements, the originator ( XXXX ) no longer retains a legal ownership interest. 
Continued collection or reporting of a sold asset may constitute misrepresentation under federal accounting and disclosure

Company response to consumer: Closed with explanation