Consumer complaint received 2025-10-20 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: FIRST HORIZON BANK
State: NC

Complaint narrative:
I am writing to dispute inaccurate and fraudulent reporting on my credit file concerning the account with First Horizon Bank, formerly known as XXXX Bank, account number XXXX. The continued reporting of XXXX late entries for over XXXX years is both false and misleading since the obligation secured by this account was paid in full in XXXX, as evidenced by the attached Satisfaction of Deed filed with the XXXX XXXX XXXX XXXX XXXX. 

I have filed this dispute on multiple prior occasions and have provided supporting documentation each time. XXXX has failed to correct the inaccuracies or provide validation, which constitutes noncompliance with federal credit reporting requirements. 

Explanation of the Transaction and Account Ownership in Credit Securitization : In a securitization transaction involving credit receivables, only the receivablesthe amounts owed by borrowersare sold to a trust or XXXX XXXX vehicle ( XXXX ), while the financial institution retains legal ownership of the credit accounts themselves, often referred to as designated accounts or trust accounts. 

The financial institution continues to manage and control the credit accounts and retains the contractual right to modify the terms as needed. New receivables generated on these designated accounts are sold to the trust, which finances the purchases using monthly principal payments from borrowers. 

The originating institution also maintains a sellers interesta buffer of receivables held by the trust to absorb fluctuations in the outstanding balanceand replenishes this as necessary. 

This transaction structure confirms that the originating institution, First Horizon Bank, as the legal owner of the account, is responsible for managing the account and validating any reporting or contractual changes, regardless of securitization. 

Bank XXXX and XXXX Claims : First Horizon Bank has not used any of its own capital, funds, money, or money equivalents to pay for any charges on the alleged account XXXX. Instead, it received something-for-nothing by using my note ( XXXX ) to fund charges to the credit account while retaining payments made by me. 

This constitutes a breach because First Horizon Bank failed to disclose this arrangement in the credit agreement before soliciting my acceptance. As a result, First Horizon Bank has directly or indirectly used false, deceptive, or misleading representations or means, violating Section 807 of the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692e, constituting fraud. 

Due to the securitization of the initial outstanding balances on my account, First Horizon Bank is not a holder in due course and thus can not claim a loss or valid claim against me. Additionally, when accounts are 90 days or more overdue, First Horizon Bank receives payoff amounts from insurance policies whose premiums were unknowingly funded by me. 

I demand absolute assurance from First Horizon Bank that no breach occurred. I request an authorized XXXX sign the enclosed affidavit confirming understanding of the credit agreement, XXXX, bookkeeping, accounts receivable and deposits, banking laws, and Federal Reserve policies and procedures. 

False and Fraudulent Payment Reporting : XXXX credit file falsely indicates that a payment was made in XX/XX/XXXX, followed by an update to the account status on XX/XX/XXXX, as if that payment had been made or the account reactivated. 
This update is false, misleading, and fraudulent. No payment or authorization has occurred since the full satisfaction in XXXX. I demand immediate removal of this false information and proof of any claimed payment. 

Demand for Documentation and Validation : Under the Fair Credit Reporting Act ( 15 U.S.C. 1681i ), I demand full validation of this account, including all records and communications provided by First Horizon Bank regarding this account.

Company response to consumer: Closed with non-monetary relief