Product: Credit reporting or other personal consumer reports

Equifax failed to Maintain Reasonable Procedures Designed to Prevent Reinsertion and Unlawful Reinsertion of Previously Deleted Information in Violation of the FCRA, 15 U.S.C. 1681i ( a ) ( 5 ) ( B ), ( C ) Under the FCRA, [ i ] f any information is deleted from a consumers file pursuant to [ 1681i ( a ) ( 5 ) ( A ) ], the information may not be reinserted in the file by the consumer reporting agency unless the person who furnishes the information certifies that the information is complete and accurate, 15 U.S.C.

1681i ( a ) ( 5 ) ( B ) ( i ). The CRA must then notify the consumer of the reinsertion...

not later than 5 business days after the reinsertion, 15 U.S.C.

1681i ( a ) ( 5 ) ( B ) ( ii ), and provide to a consumer in writing not later than 5 business days after the date of reinsertion ( I ) a statement that the disputed information has been reinserted ; ( II ) the business name and address of any furnisher of information contacted and the telephone number of such furnisher, if reasonably available, or of any furnisher of information that contacted the consumer reporting agency, in connection with the reinsertion of such information ; and ( III ) a notice that the consumer has the right to add a statement to the consumers file disputing the accuracy or completeness of the disputed information. 15 U.S.C. 1681i ( a ) ( 5 ) ( B ) ( iii ).

Consumer reporting agencies are further required to maintain reasonable procedures to prevent reinsertion of information previously deleted as the result of a dispute. 15 U.S.C. 1681i ( a ) ( 5 ) ( C ). 
Equifax also reinserts information into consumers files without obtaining a furnisher certification and without notifying consumers within five business days or otherwise adhering to the requirements of 15 U.S.C.

1681i ( a ) ( 5 ) ( B ).

Therefore, Equifaxs actions violated and continue to violate the FCRA, 15 U.S.C. 1681i ( a ) ( 5 ) ( B ), ( C ).

Failure to Implement and Follow Reasonable Procedures to Assure Maximum Possible Accuracy in Violation of the FCRA, 15 U.S.C. 1681e ( b ) The FCRA requires a CRA to follow reasonable procedures to assure maximum possible accuracy of the credit information they report on consumers. 15 U.S.C. 1681e ( b ).

Because Equifax does not prevent new furnishers from reinserting trade lines that Equifax had previously deleted in response to a consumer dispute, Equifax fails to follow reasonable procedures to assure maximum possible accuracy of the credit information it reports on consumers. 
Therefore, Equifaxs actions violated and continue to violate the FCRA, 15 U.S.C. 1681ie ( b ).

Failure to Forward Disputes in Violation of the FCRA, 15 U.S.C. 1681i ( a ) ( 2 ) ( A ).

After receiving notice that a consumer disputes any item of information contained in his or her consumer file, a CRA has five business days to notify the furnisher of the information disputed by the consumer. 15 U.S.C.

1681i ( a ) ( 2 ) ( A ).

Failure to Conduct a Reasonable Reinvestigation and Failure to Provide Furnishers with All Relevant Information in Violation of the FCRA, 15 U.S.C.

1681i ( a ) ( 1 ) ( A ), ( 2 ) The FCRA requires a CRA to conduct a reasonable reinvestigation and to notify and provide all relevant information regarding a dispute that it received from the consumer to the furnisher of the disputed information. 15 U.S.C.

1681i ( a ) ( 1 ) ( A ), ( 2 ).

Equifax does not conduct a reasonable reinvestigation or convey to furnishers all relevant information it receives from consumers when it incorrectly applies generic dispute codes despite more specific codes being available, uses dispute codes that inaccurately describe consumers disputes, and applies dispute codes requesting updates that are already reflected on consumers trade lines.

Deleting Trade lines Without an Investigation in Violation of the FCRA, 15 U.S.C. 1681i ( a ) ( 1 ) ( A ) Whenever a consumer disputes the completeness or accuracy of any item contained in his or her consumer file, a CRA is required to conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate, and record the current status of the disputed information, or delete the item from the file in accordance with paragraph ( 5 ). 15 U.S.C. 1681i ( a ) ( 1 ) ( A ). 

Unreasonable Over-Reliance on a Furnishers XXXX Response in Violation of the FCRA, XXXX XXXX. XXXX ( a ) ( XXXX ) ( A ) Whenever a consumer disputes the completeness or accuracy of any item contained in his or her consumer file, a CRA is required to conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate, and record the current status of the disputed information, or delete the item from the file in accordance with paragraph ( 5 ). 15 U.S.C. 1681i ( a ) ( 1 ) ( A ). 
Rather than undertaking a reasonable reinvestigation, Equifax unreasonably relies on furnishers XXXX  responses in at least three categories of disputes : ( 1 ) disputes where the consumer provided information that alerted or should have alerted Equifax to the possibility that the furnisher might be unreliable, ( 2 ) disputes where Equifax already had information that alerted or should have alerted Equifax to the possibility that the furnisher might be unreliable and ( 3 ) disputes where Equifax received illogical and inconsistent XXXX  responses from furnishers that alerted or should have alerted Equifax to the possibility that the furnisher might be unreliable. In each of these instances, Equifax had affirmative notice that the information received from the furnisher may be suspect.

In such disputes, Equifax possesses information that the disputed consumer data is inaccurate, and thus the original source of the disputed data namely, the furnisher is unreliable. Nevertheless, Equifax uncritically accepts and implements furnishers XXXX responses. When Equifaxs reinvestigation consists solely of sending an XXXX  to a furnisher and implementing the furnishers response despite ( 1 ) having or receiving evidence of that furnishers unreliability, and ( 2 ) the existence of readily available, cost-effective additional investigative measures, Equifax fails to conduct a reasonable reinvestigation. 
Therefore, XXXX actions violated and continue to violate the FCRA, 15 U.S.C. 1681i ( a ) ( 1 ) ( A ).

Failure to Delete Inaccurate, Incomplete, or Unverified Information in Violation of the FCRA, 15 U.S.C. 1681i ( a ) ( 5 ) ( A ) The FCRA requires a CRA to delete any information found to be inaccurate, incomplete, or unverified after a reinvestigation. 15 U.S.C.

1681i ( a ) ( 5 ) ( A ).

CFPA VIOLATIONS The CFPA prohibits covered persons from offering or providing to a consumer any financial product or service not in conformity with Federal consumer financial law, otherwise committing any act or omission in violation of a Federal consumer financial law, or engaging in any unfair, deceptive, or abusive act or practice. 12 U.S.C. 5531 ( a ), 5536 ( a ) ( 1 ).

Under the CFPA, an act or practice is unfair when it causes or is likely to cause substantial injury to consumers which is not reasonably avoidable by consumers, and such substantial injury is not outweighed by countervailing benefits to consumers or to competition. 12 U.S.C. 5531 ( c ) ( 1 ).

Unfair Acts or Practices : Failing to Convey Consumers Disputes to Furnishers Fully and Accurately When communicating with furnishers, Equifax distorts, truncates, and mischaracterizes consumers disputes by applying dispute codes that inaccurately describe consumers disputes, incorrectly using generic dispute codes despite more specific codes being available, applying dispute codes requesting updates that are already reflected on consumers trade lines, and failing to forward relevant consumer documentation. 
Equifax commits unfair acts and practices by failing to convey consumers disputes to furnishers in an accurate and complete fashion. 
Equifaxs conduct is likely to cause substantial injury because it fails to accurately convey the nature of disputes to furnishers, which prevents furnishers from understanding and addressing the substance of the consumers intended dispute, and thereby increases the likelihood that inaccurate information remains on consumer reports.

Consumers can not reasonably avoid the injury because consumers can not control what information Equifax sends to the furnisher and Equifax never discloses to consumers what information it sent to the furnisher.

Therefore, Equifax has engaged, and continues to engage, in unfair acts and practices in violation of the CFPA. 12 U.S.C. 5531 ( c ), 5536 ( a ) ( 1 ) ( B ). 

Unfair Acts or Practices : Excessive and Unreasonable Reliance on a Furnishers XXXX  Response Experians practice of conducting an investigation by doing nothing more than sending an XXXX  to a furnisher and implementing the furnishers response, and not seeking or taking into account additional, relevant information as part of its reinvestigation, despite having or receiving evidence of that furnishers unreliability, is unfair. 
This practice causes or is likely to cause inaccurate reporting to remain on consumer reports and thereby causes or is likely to cause substantial injury. 
Consumers can not reasonably avoid the injury because Equifax controls the dispute process and what items appear on consumer reports. The dispute and reinvestigation processparticularly the details of how Equifax handles disputes and conducts reinvestigationsis largely unknown to consumers. 
The practice does not provide countervailing benefits to consumers or to competition. Neither consumers nor competition benefit from Equifaxs inadequate reinvestigation procedures. 
Therefore, Equifax has engaged, and continues to engage, in unfair acts and practices in violation of the CFPA. 12 U.S.C. 5531 ( c ), 5536 ( a ) ( 1 ) ( B ).

Unfair Acts or Practices : Failing to Prevent Improper Trade line Reinsertions Equifax improperly reinserts trade lines into consumer reports due to its practice of not attempting to match newly reported trade lines to trade lines that were previously deleted as a result of a dispute if the subsequent furnishing was from a new furnisher. 
This practice causes or is likely to cause substantial injury by increasing the likelihood that previously deleted and erroneous information reappears in a consumers file. Moreover, because Equifax fails to notify consumers that new furnishers reinserted previously deleted information, consumers are unaware that they should file a dispute to challenge such information, thereby increasing the amount of time that erroneous information appears on consumer files. 
Consumers can not reasonably avoid the injury because they can not control what Equifax puts on their consumer reports. 
No countervailing benefits to consumers or to competition exist. 
There is no consumer benefit to Equifaxs failure to prevent the reinsertion of deleted trade lines, and no legitimate benefit to competition.

Therefore, Equifax has engaged and continues to engage in unfair acts and practices, in violation of the CFPA. 12 U.S.C. 5531 ( c ), 5536 ( a ) ( 1 ) ( B ).

Violations of the CFPA Arising From FCRA Violations Section 1036 ( a ) ( 1 ) ( A ) of the CFPA prohibits a covered person from offering or providing to a consumer any financial product or service not in conformity with Federal consumer financial law or otherwise committing any act or omission in violation of a Federal consumer financial law. 12 U.S.C.

5536 ( a ) ( 1 ) ( A ).

The Fair Credit Reporting Act is an enumerated consumer law, 12 U.S.C. 5481 ( 12 ) ( F ), and therefore a Federal consumer financial law. 12 U.S.C.

5481 ( 14 ).

Therefore, Equifaxs violations of the Fair Credit Reporting Act, described above in Counts I through IX, constitute violations of the CFPA, 12 U.S.C. 5536 ( a ) ( 1 ) ( A ).