Product: Credit reporting or other personal consumer reports

Date : XX/XX/2024 Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX, IA XXXX Subject : Formal Demand for Credit Report Correction and Review of Unfair Credit Scoring Practices By All three major credit bureaus XXXX, XXXX, Experian and FICO ( Fair Isaac Corporation ) Dear Consumer Financial Protection Bureau , I am writing to formally request a review and correction of my credit report and the credit scoring practices that have unfairly and unlawfully affected my financial opportunities. The credit score assigned to me by the FICO scoring system was based on a flawed and inaccurate evaluation, which has led to high interest rates, credit denials, low loan amounts, and other negative consequences. These adverse outcomes have caused me undue financial hardship, and I believe they violate federal law, including the Fair Credit Reporting Act ( FCRA ), as well as my rights to a fair and accurate credit profile. 

1. Inability to Use FICO 's Five Factors on a New Credit File FICOs credit scoring model is based on five key factors : Payment History ( 35 % ) Amounts Owed ( 30 % ) Length of Credit History ( 15 % ) Credit Mix ( 10 % ) New Credit ( 10 % ) However, these factors are not applicable to a new credit file, which has no established credit history. In my case, when I first entered the credit system, there was no negative information on my report, nor had I engaged in any financial activity that would reflect any of these five factors. Yet, I was still assigned a low credit score of around 500, which is both arbitrary and inaccurate. The assignment of such a low score, in the absence of any negative history or actual data points, is fundamentally unfair and misleading.

Without a basis in the five factors that FICO uses to determine creditworthiness, it is impossible for the score assigned to me to be correct. This lack of transparency and accuracy violates the FCRAs requirements under 15 U.S.C. 1681e ( b ), which mandates that consumer reporting agencies ensure that the information they report is accurate and complete. 

2. High Interest Rates, Denials, and Low Loan Amounts Based on an Incorrect Score Due to the incorrect credit score assigned to me, I was offered credit products with disproportionately high interest rates, as high as 24 %, compared to those with XXXX credit scores who were offered much lower rates, such as 5 %. In addition, I was subjected to low loan amounts and, in some cases, outright denial of credit. These decisions were made based on an inaccurate score, which unfairly categorized me as a high-risk borrower despite having no negative credit history. 

As these credit terms and denials were based on an unfair score, all credit accountswhether positive or negativethat were granted or denied to me based on that score should be removed from my credit report. XXXX XXXX. XXXX ( a ) of the FCRA entitles consumers to have inaccurate or incomplete information investigated and corrected. The unfair initial scoring has caused all subsequent credit decisions to be tainted, and as a result, every loan, interest rate, and account reflected on my credit report is inaccurate. 

3. The Need for a Fair Starting Credit Score of XXXX Since the five factors used to calculate FICO scores can not be applied to new credit files, it is unfair and misleading to assign an artificially low score. By federal law, every consumer is entitled to a fair start in the credit system. Given that I had no negative data on my credit profile when I first entered the system, my starting score should have been XXXX, reflecting that there was no basis for assigning a lower score. 

The artificially low score has caused me undue financial harm and has skewed my creditworthiness from the start. 15 U.S.C. 1691 ( a ) under the Equal Credit Opportunity Act ( ECOA ) prohibits discriminatory credit practices. The assignment of a low score without any factual basis or negative credit history unfairly categorized me and denied me access to favorable credit opportunities, including lower interest rates and higher loan amounts, which I would have been entitled to if my score had accurately reflected my creditworthiness. 

4. Impact on Insurance Premiums, Job Opportunities, and Housing In todays economy, credit scores are used not only for loans and credit cards but also for determining insurance premiums, job qualifications, and housing opportunities. As a young adult with no negative history on my credit report, I have been unfairly penalized with higher insurance premiums and potentially denied opportunities in employment and housingall because of a credit score that was incorrectly assigned based on an arbitrary system.

15 U.S.C. 1681b stipulates that credit reporting agencies must have a permissible purpose to share consumer information with third parties, such as insurance companies and employers. However, the low credit score I was assigned was inaccurate and based on incomplete information. Therefore, decisions made by these third parties using my inaccurate score have caused me significant harm. These practices are both unfair and violate my rights to have a fair and transparent evaluation of my credit. 

5. Unfair and Misleading Treatment of Creditworthiness Assigning a low score to a consumer who has no negative data on their credit profile is fundamentally unfair. It sends the misleading message that the consumer is not creditworthy when, in fact, they have not had any opportunity to demonstrate their creditworthiness. This practice is particularly harmful to young consumers who are just beginning to build credit, as it sets them up for failure before they have even had a chance to engage with the credit system. 

As a result of this unfair practice, I have been subjected to high interest rates, low loan amounts, credit denials, and other financial penalties that are based on a false assessment of my creditworthiness. These adverse decisions should be considered invalid and removed from my credit report. 

6. Legal Violations and Request for Relief Under federal law, credit reporting agencies are required to ensure the accuracy of the information they report. 15 U.S.C. 1681e ( b ) requires that all information reported be accurate, and 15 U.S.C. 1681i provides consumers the right to dispute inaccurate information and have it corrected. The inaccurate score assigned to me has caused all subsequent credit decisions to be flawed, and under these provisions, I am entitled to have all credit accounts, both positive and negative, removed from my report. 

Additionally, under 15 U.S.C. 1681c, outdated and inaccurate information must be removed from consumer reports. Since all credit decisions made after the assignment of my original score were based on flawed data, my entire credit profile should be wiped clean, and I should be given a fair start with a XXXX XXXX of XXXX. 

XXXX. Demand for Transparency and XXXX XXXX The FCRA also mandates that consumer reporting agencies obtain written consent before reporting to third parties. In my case, the original score was assigned without my knowledge or consent, and the resulting consequences were both unfair and unlawful. XXXX XXXX. XXXX ( a ) ( XXXX ) states that credit reporting agencies must have my written consent to share my information with third parties, and as such, I demand full transparency regarding how my original score was calculated and how my information was shared. 

XXXX. Fines and Penalties for Non-Compliance If the errors on my report are not immediately removed and reversed, I reserve the right to pursue legal action and seek compensation under the following statutes : Civil Penalties under 15 U.S.C. 1681n : Willful non-compliance with the FCRA can result in damages awarded to the consumer, including actual damages, statutory damages ranging from {$100.00} to {$1000.00} per violation, punitive damages, and attorney fees. 

Negligent Non-Compliance under 15 U.S.C. 1681o : Negligent failure to comply with the FCRA may also result in actual damages and attorney fees awarded to the consumer. 

Civil Penalties under the Equal Credit Opportunity Act ( ECOA ) : Under 15 U.S.C. 1691e, if a creditor is found to be in violation of the ECOA by offering discriminatory or unfair credit terms based on inaccurate or misleading information, the consumer is entitled to actual damages, punitive damages up to {$10000.00}, and attorney fees. 

Furthermore, I am aware that non-compliance with federal regulations could also result in oversight and fines imposed on credit reporting agencies by regulatory bodies, including the Consumer Financial Protection Bureau ( CFPB ), which can enforce monetary penalties for violations of the FCRA. 

Conclusion In light of these violations and potential legal consequences, I am requesting the following actions : 1. Immediate reset of my credit score to XXXX to reflect a fair and accurate start. 


2. Immediate removal of all inaccurate credit accounts positive or negativeThat was granted based on the flawed score. From my consumer report and all three major credits, XXXX XXXX. XXXX XXXX. XXXX XXXX. Experian XXXX. Full transparency and disclosure regarding how my original score was calculated and how my information was shared with third parties. 


XXXX. Investigation and correction of all inaccurate data reported to third parties, including but not limited to FICO ( Fair Isaac Corporation ) insurance companies, employers, and housing providers. 


If the errors are not corrected promptly, I will proceed with legal action, seeking all damages available under the FCRA and other applicable laws. I look forward to your prompt response and action regarding this matter. Please do not hesitate to contact me for further information or documentation. 

Sincerely, XXXX XXXX XXXX