Product: Credit reporting or other personal consumer reports

I. INTRODUCTION In the matter at hand, Consumer ( Complainant ) alleges inaccuracies and material misrepresentations in credit reporting by TransUnion for the XXXX XXXX XXXX ( XXXX ) accountXXXX XXXX XXXXXXXX, with corresponding account number XXXX and purported original creditor XXXX XXXX XXXX. Despite receiving dispute notifications and clear evidence of misleading information reported, TransUnion has failed to conduct proper reinvestigations as required under 15 U.S.C. 1681i. Furthermore, TransUnion has failed to implement and maintain processes and procedures to ensure maximum possible accuracy in the credit files it maintains regarding Complainant, as required under 15 U.S.C. 1681e ( b ). This pattern of behavior is evident in the indirect disputes filed by Complainant, followed by the persistence of inaccurate information for the XXXX XXXX XXXX account/XXXX  TransUnions actions demonstrate a disregard for regulatory guidelines and statutory duties under the FCRA and a deliberate attempt to avoid rectifying the inaccuracies, causing significant harm to Complainants creditworthiness and financial stability. II. BACKGROUND On XX/XX/XXXX, Complainant received a notification from XXXX indicating that a collection account from XXXX XXXX XXXX ( " XXXX '' ) related to XXXX XXXX had been reported on Complainant 's credit file maintained by TransUnion. On XXXX XX/XX/XXXX, Complainant disputed this account with TransUnion ( CFPB XXXX ), challenging its accuracy on several grounds, including lack of proper notice from XXXX, failure to verify the address, and the overall legitimacy of the account under the Fair Debt Collection Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ). Specifically, Complainant noted the following pertaining to the FDCPA and FCRA : Lack of Proper Notice : XXXX failed to provide Complainant with proper notice of the debt as required by the FDCPA. Complainant never received any communication or notice from XXXX regarding the alleged debt, which is a fundamental violation of consumer rights under the FDCPA. Failure to Verify Address : If XXXX XXXX provided XXXX with an outdated address, XXXX had an obligation to verify the accuracy of the address before sending any notices. The failure to ensure that any notice reached Complainant further underscores XXXX failure to follow reasonable procedures. Violation of FDCPA : By failing to provide Complainant with proper notice and an opportunity to dispute the debt, XXXX violated Complainants rights under the FDCPA, rendering the reporting of this account on Complainants credit file unjustified. Materially Misleading Information : The information reported by XXXX is materially misleading under the standard set forth in XXXX XXXX XXXX XXXX XXXX XXXX creating a misleading impression that adversely affects Complainants creditworthiness. 
Billing and Payment Processing Issues : Between XXXX and XXXX, XXXX XXXX had significant billing and processing irregularities on Complainants utility account, leading to delays in billing and payment processing. These issues were documented in a prior CFPB complaint filed on XX/XX/XXXX. Additionally, an energy draft for {$620.00} issued by Complainants state of residence was never applied to Complainants XXXX XXXX account, further contributing to the inaccuracies reported. No Inquiries on Credit File : There are no inquiries from XXXX in the credit files maintained by XXXX, XXXX, and TransUnion, suggesting a lack of due diligence by XXXX in verifying any alleged address to which they purport to have mailed any collection notice. XXXX. SUPPORTING FACTS Initial Dispute Submission to TransUnion Date : XX/XX/XXXX Filed As : CFPB XXXX Action : Direct dispute regarding the XXXX XXXX  XXXX XXXX account submitted to TransUnion through XXXX CFPB Complaint Portal XXXX TransUnion 's Response to CFPB XXXX Date : XX/XX/XXXX Action : TransUnion responded XXXX stating that the disputed information was not currently on Complainant 's TransUnion credit report, despite evidence showing otherwise. 
Evidence of Account/XXXX  Presence Date : XX/XX/XXXX, and XX/XX/XXXX Reports : XXXX reports from these dates clearly show the presence of the XXXX XXXX  XXXX XXXX account on Complainant 's TransUnion credit file, contradicting TransUnion 's claims. 
Continued Reporting Despite Disputes Despite the disputes, TransUnion continued reporting the account, which remains inaccurate and materially misleading. This failure to correct the inaccuracies violates the FCRA, specifically 15 U.S.C. 1681e ( b ) and 15 U.S.C. 1681i ( a ). 
Second Dispute Filed Date Filed : XXXX XX/XX/XXXX Filed As : CFPB XXXX Action : Filed a new indirect dispute through the CFPB web portal. XXXXXXXX XXXX  Admission of Inability to Validate Debt ( XXXX XXXX, XXXX ) : Date : XXXX XX/XX/XXXX Summary : XXXX acknowledged their inability to validate the debt and placed the account in " restrictive status '' to prevent further collection attempts. Discrepancies in the amount owed remained unresolved. ( See CFPB XXXX XXXX. XXXX ). XXXX 's Continued Admission of Inability to Validate Debt ( XXXX XX/XX/XXXX ) : Date Filed : XXXX XX/XX/XXXX Filed As : CFPB XXXX Response Date : XXXX XX/XX/XXXX Response Summary : XXXX acknowledged their inability to validate the debt and placed the account in " restrictive status '' to prevent further collection attempts. Discrepancies in the amount owed remained unresolved. ( See CFPB XXXX XXXX. XXXX ). Third Dispute Filed Date Filed : XXXX XX/XX/XXXX Filed As : CFPB XXXX Action : Filed a new indirect dispute through the CFPB web portal. Summary : I was not properly notified of a debt by XXXX XXXX XXXX ( " XXXX '' ), which sent collection notices to an outdated address despite my updated address being available. XXXX continued collection activities without verifying the debt, violating the FDCPA and FCRA. Additionally, the amount reported by XXXX differs from the final bill and ignores an unprocessed energy draft. The credit reporting agencies ( XXXX, XXXX, TransUnion ) are reporting conflicting Dates of First Delinquency and amounts owed. I request the immediate removal of this inaccurate XXXX. The full demand and documentation is attached. Attached documents : XXXX contains the following : credit reports from all three NCRAs showing the discrepant DoFD among each Prior responses form XXXX Snippets from XXXX, XXXX, XXXX, CFPB and FTC XXXX Brief from XXXX, and CFPB Highlights : Servicing of Collection of Consumer Debt, Vol 34, Summer 2024 Date Responded : XXXX XX/XX/XXXX Response : After careful review, we have determined the information submitted in the portal included a dispute of information appearing on your credit report. 
TransUnion has processed your request and forwarded a copy of the Investigation Results through US mail. You should expect to receive those results in approximately 7 business days. In response to your request for a description of the dispute procedure, we sent you a letter listing the actions we take : TransUnion reviews all available relevant information and contacts the data furnisher to verify the accuracy of the information. If we are unable to make the change based on the information you provided, we update our records with the information the creditor provides in response to the dispute, and then we send you the results of the investigation including the contact information of the company that verified the data so you can contact them directly if needed. Based on your request we sent you a letter to inform you we are investigating the information you disputed and to request proof of address that included a list of acceptable documents and instructions on where to send it. DESCRIPTION OF NON-MONETARY RELIEF In response to your request, the following actions were taken on your credit file : You disputed the following accounts and/or public records on your credit file. Below includes the results of that investigation. XXXX XXXX-VERIFIED AS REPORTED IV. LEGAL ANALYSIS A. Violations of the Fair Credit Reporting Act ( FCRA ) Failure to Conduct Reasonable Investigations Under 15 U.S.C. 1681i ( a ) ( 1 ) ( A ), TransUnion was required to conduct a reasonable reinvestigation after Complainant disputed the accuracy of the XXXX XXXX XXXX account. TransUnion 's claim that the account was not present on the report, when it clearly was, demonstrates a failure to conduct a reasonable reinvestigation. Case Law : XXXX XXXX XXXX XXXX XXXX Bank, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) : The court held that inaccurate information encompasses both false information and correct information that nevertheless creates a materially misleading impression. XXXX v. Trans Union XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX. XXXX ) : XXXX on automated processes ( " XXXX '' ) is insufficient for a reasonable reinvestigation under the FCRAXXXX XXXX  v. XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Information in a consumer report must be both accurate and not misleading. XXXX v. XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) : merely forwarding a dispute to the furnisher without conducting a substantive reinvestigation is insufficient under 1681i. A CRA must do more than just forward disputes or perform a superficial reviewthey must investigate fully and take corrective action : [ A ] credit reporting agency XXXX be required, in certain circumstances, to verify the accuracy of its initial source of information, in this case the Judgment Docket. Cf. XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ), cert. denied, XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX ) ( holding that it was unreasonable for a credit reporting agency to only contact an agent of the creditor to re-verify a delinquent account balance reported in the plaintiff 's credit report where the plaintiff notified the credit reporting agency that he had a personal dispute with the agent ). Failure to Ensure Maximum Possible Accuracy As required under 15 U.S.C. 1681e ( b ), TransUnion failed to ensure the maximum possible accuracy of the information in Complainant 's credit file. The continued presence of inaccurate and misleading information, despite multiple disputes, indicates that TransUnion did not follow reasonable procedures to maintain accurate credit reporting. Case Law : XXXX XXXX Credit Bureau XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) : Inaccurate credit reports by themselves can fairly be read as evidencing unreasonable procedures. XXXX XXXX Trans Union XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : The failure to follow reasonable procedures can be inferred from the mere fact of an inaccuracy on a consumers credit report. Twumasi-Ankrah v XXXX 
XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Even technically accurate information can be misleading if it creates a materially misleading impression that could adversely affect the consumer. Reporting Inaccurate Information 15 U.S.C. 1681e ( b ) requires that CRAs adopt reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. 
TransUnions reliance on information furnished by XXXX XXXX XXXX without proper verification and validation led to the continued reporting of inaccurate and misleading information on Complainants credit report. TransUnion knows or has reasonable cause to believe that it should not blindly rely upon the data furnished by XXXX because XXXX XXXX : XXXX v. XXXX XXXX. XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) : A CRAs reliance on information gathered by outside entities is reasonable only if the information is not obtained from a source that was known to be unreliable and is not inaccurate on its face or otherwise inconsistent with the information the CRAs already had on file. Consumer Financial Protection Bureau and Federal Trade Commission, XXXX XXXX XXXX XXXX XXXX TransUnion, LLC, No. XXXX ( XXXX Cir. XX/XX/XXXX ) : The text of the FCRA makes no distinction between factual and legal inaccuracies; importing a distinction between factual and legal inaccuracies into the law is unworkable in practice. Failure to Correct or Delete Inaccurate Information Under 15 U.S.C. 1681i ( a ) ( 5 ) ( A ), if, after any reinvestigation, an item of information is found to be inaccurate, incomplete, or can not be verified, the consumer reporting agency must delete or modify that item of information. TransUnions failure to remove or correct the inaccurate and misleading information reported by XXXX XXXX XXXX, despite clear evidence and multiple disputes, constitutes a violation of the FCRA. XXXX XXXX : XXXX v. XXXX XXXX. XXXX, XXXX XXXX XXXX ( XXXX Cir. 
XXXX ) : The court held that if a CRA fails to correct or delete inaccurate, incomplete, or unverifiable information after a consumer dispute, it is a violation of the FCRA. Materially Misleading Information The information reported by TransUnion is not only inaccurate but also materially misleading. The conflicting Date of First Delinquency ( DoFD ) reported by XXXX, XXXX, and TransUnion further demonstrates that the information in TransUnions files is misleading and harmful to Complainants creditworthiness. XXXX XXXX : XXXX v. XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Materially misleading information can be just as damaging to a consumer as outright false information when it creates an adverse effect on the consumers creditworthiness.