Consumer complaint received 2024-01-22
Company: TRANSUNION INTERMEDIATE HOLDINGS, INC.
State: PA
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
XXXX Prohibition on inclusion of adverse information in consumer reporting in cases of human trafficking ( c ) Prohibition on Inclusion of Adverse Information of Trafficking Victims Section 605C ( b ) provides that a consumer reporting agency may not furnish a consumer report containing any adverse item of information about a consumer that resulted from a severe form of trafficking in persons or XXXX trafficking if the consumer has provided trafficking documentation to the consumer reporting agency. Bureau finds that accepting documents filed in a court of competent jurisdiction where the consumers status as a victim of trafficking is a central issue and the courts actions after an initial review of the consumers claim passes a level of verification from the court will prevent a consumer reporting agency from furnishing a consumer report containing adverse information about a consumer that resulted from trafficking. Documentation received was not Honored by XXXX. This provision of the rule is also supported by the Bureaus regulatory authority under section 621 ( e ) of the FCRA. Bureau expects consumer reporting agencies to explore and implement a risk-based approach to verifying a consumer 's identity through both documentary and non-documentary means : XXXX is violating 1022.140 Prohibition against circumventing or evading treatment as a consumer reporting agency by denying Survivors right to Self attest as a victim of Human Trafficking. The Bureau finds that accepting documents filed in a court of competent jurisdiction where the consumers status as a victim of trafficking is a central issue and the courts actions after an initial review of the consumers claim passes a level of verification from the court will prevent a consumer reporting agency from furnishing a consumer report containing adverse information about a consumer that resulted from trafficking. Permit A Consumer To Self-Attest as a victim of trafficking if the document or an accompanying document is signed or certified by a Federal, State, or Tribal governmental entity, a court of competent jurisdiction, or the representatives of these entities ;, the Bureau is clarifying that the requirements in 1022.123 should be used for purposes of section 605C and tailored to the needs of victims of trafficking for purposes of establishing a consumer 's identity 605 ( C ) ( a ) ( 1 ) ( B ) provides that trafficking documentation is documentation that identifies items of adverse information that should not be furnished by a consumer reporting agency because the items resulted from a severe form of trafficking in persons the Bureau provided examples of adverse items of information that include records containing derogatory information, such as payment delinquencies or defaults reported to a consumer reporting agency on a loan or large purchase, records of coerced debt where a loan is taken out by a victim of trafficking under force or threat, records of criminal arrests and convictions, and records of evictions or non-payment of rent. Identifying Information means any name or number that may be used, alone or in conjunction with any other information, to identify a specific person, including any : ( 1 ) Name, social security number, date of birth, official state or government issued driver 's license or identification number, alien registration number, government passport number, employer or taxpayer identification number ; ( 2 ) Unique biometric data, such as fingerprint, voice print, retina or iris image, or other unique physical representation ; ( 3 ) Unique electronic identification number, address, or routing code; or ( 4 ) Telecommunication identifying information or access device ( as defined in 18 U.S.C. 1029 ( e ). In this case, without an identifiable concern, such as an indication that the report was fraudulent, it would not be reasonable for an information furnisher or consumer reporting agency to request additional information or documentation.Due to the sensitive nature involving victims of trafficking and because the Bureau does not believe the details surrounding ones victimization must be provided to consumer reporting agencies, consumer reporting agencies must accept these documents with redactions that omit any details that exceed what is sufficient to confirm an individual has been identified as a victim of trafficking. ( ii ) A consumer might provide a law enforcement report similar to the report in Paragraph ( i ) ( 1 ) of this section but certain important information such as the consumer 's date of birth or Social Security number may be missing because the consumer chose not to provide it. All that is required is a Consumer File Match. The identification information of the consumer including his or her full name ( first, middle initial, last, suffix ), any other or previously used names, current and/or recent full address ( street number and name, apt . no., city, state, and zip code ), full nine digits of Social Security number, and/or date of birth. The XXXX has refused to honor the submitted documents. Consequently, A consumer might provide a law enforcement report generated by an automated system with a simple allegation that an identity theft occurred to support a request for a tradeline block or cessation of information furnishing. In such a case, it would be reasonable for an information furnisher or consumer reporting agency to ask that the consumer fill out and have notarized the Bureau 's Identity Theft Affidavit or a similar form and provide some form of identification documentation.. A consumer might provide a law enforcement report generated by an automated system with a simple allegation that an identity theft occurred to support a request for an extended fraud alert. In this case, it would not be reasonable for a consumer reporting agency to require additional documentation or information, such as a notarized affidavit. However, a consumer often may instead be able to obtain a copy of the law enforcement affidavit or other documented statements from a governmental entity or entity with delegated authority from a governmental entity filed in the criminal court proceedings on behalf of the prosecution which would then constitute a victim determination made by a governmental entity under 1022.142 ( b ) ( 6 ) ( i ) ( A ) The Bureau is aware that some victims, given the nature of their victimization and subsequent involvement in crimes they were forced to commit as a result of having been trafficked, are apprehensive to interact with and obtain relief from a governmental entity or a court. The Bureau is adding 1022.142 ( b ) ( 6 ) ( i ) ( C ) to the final rule to provide that a signed statement by the consumer attesting that the consumer is a victim of trafficking is an acceptable victim determination if such statement or an accompanying document is signed or certified by a representative of an entity described in 1022.142 ( b ) ( 6 ) ( i ) ( A ) and ( B ). The Bureau stated it has not identified any standard determination procedures or forms in use by any governmental entities or courts concerning human trafficking for persons who are not foreign national adults ( i.e., United States citizens or lawful permanent residents ) .For purposes of submitting trafficking documentation to consumer reporting agencies, consumers are not required to reveal the details of their trafficking to consumer reporting agencies since doing so may cause some consumers to suffer additional harm. Therefore, the Bureau concludes that so long as a self- attestation made by a consumer is supported by a determination made by a Federal, State , or Tribal governmental entity or a court of competent jurisdiction, as described in 1022.142 ( b ) ( 6 ) ( i ) ( A ) or ( B ), it satisfies the trafficking documentation requirement as provided by 1022.142 ( b ) ( 6 ) ( i ) ( C ). The Bureau is finalizing 1022.142 ( b ) ( 6 ) ( i ) without adding to the text of the regulation a non-exhaustive list of documents that serve as a determination that a consumer is a victim of trafficking or a model self- attestation form. However, the Bureau notes that a victim may self-attest by making a statement to the effect that I attest that I am a victim of trafficking for purposes of section 605C of the Fair Credit Reporting Act. The signature of [ NAME ], employee of [ ORGANIZATION ] certifies this statement. The Bureau did not propose to prescribe what an adverse item of information in a consumer report is, because it may vary depending on the weight each individual user of a consumer report gives to certain items of information as well as the consumers individual circumstances. The Bureau stated this information could include the evaluation of factors enumerated in section 603 ( d ) of the FCRA on consumer reports such as : credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living. the Bureau provided examples of adverse items of information that include records containing derogatory information, such as payment delinquencies or defaults reported to a consumer reporting agency on a loan or large purchase, records of coerced debt where a loan is taken out by a victim of trafficking under force or threat, records of criminal arrests and convictions, and records of evictions or non-payment of rent. The Bureau is finalizing 1022.142 ( c ) as proposed. The Bureau concludes that the final rule applies to all types of adverse information, including criminal and license records, and should not contain an exception for law enforcement agencies to access such information. As explained in the section-by-section analysis of 1022.142 ( f ) below, the final rule requires a consumer reporting agency to provide written or electronic notice to the consumer within five days of reaching a final determination on a submission. Under the final rule, if a consumer has identified information resulting from trafficking as adverse, a consumer reporting agency must block that information. ( See XXXX XXXX XXXX XXXXXXXX FTC Identity Theft Report Number : XXXX ) The final rule also provides that a consumer reporting agency may not ask for information on the validity of the facts or circumstances detailed in the contents of the submitted trafficking documentation establishing the consumer is a victim of trafficking or whether the identified adverse information resulted from a severe form of trafficking in persons or XXXX trafficking under 1022.142 ( b ) ( 6 ). XXXX has deleted trafficking information. Perversely, The final rule also does not require consumer reporting agencies to delete adverse items of information identified by the victim of trafficking from the consumers credit file. The Bureau has determined that requiring consumer reporting agencies to delete that information would be counterproductive because, as explained above, the final rule does not require a consumer reporting agency to notify the furnisher of adverse information that a consumer has submitted the required documentation. If the information is deleted, but the furnisher is not provided with a reason, there is a substantial risk that the information will be reinserted into the report, whereas a block without deletion makes it more likely that the consumer reporting agency will not include the adverse information in future reports after the information is confirmed to remain blocked in 1022.142 ( e ) ( 3 ). Similar to the section- by-section analysis of 1022.142 ( e ) in the proposed rule, the Bureau does not interpret section 605C as giving the consumer reporting agency the discretion to contest the merits of the submitted trafficking documentation, if it meets the definition in section 605C ( a ) and in 1022.142 ( b ) ( 6 ) ( i ), nor does it interpret the statute as giving a consumer reporting agency the discretion to challenge a consumers determination that an adverse item of information resulted from a severe form of trafficking in persons or XXXX trafficking under 1022.142 ( b ) ( 6 ) ( ii ). The Bureau concludes that giving consumer reporting agencies additional discretion to evaluate the validity of the facts or circumstances detailed in the contents of trafficking documentation, as defined in 1022.142 ( b ) ( 6 ), would make it difficult for consumers to understand how to properly submit a request, may decrease the Bureaus ability to monitor for compliance, and could also lead to invalid reasons for declining or rescinding a block. As discussed in more detail above in the section-by-section analysis of 1022.142 ( c ), Congress did not provide an exception for criminal convictions and the final rule does not provide such an exception. The Bureau also concludes that the final rule should not provide a material misrepresentation of fact as a reason a consumer reporting agency may decline or rescind a block since the Bureau does not interpret section 605C ( a ) ( 1 ) as permitting a consumer reporting agency to make factual determinations on whether a consumer is a victim of trafficking or if adverse items of information identified by the consumer resulted from a severe form of trafficking in persons or XXXX trafficking. The Bureau also finds doing so could lead to confusion and result in improper denials if the consumer reporting agency inappropriately concludes that a material misrepresentation of fact was made. Accordingly, the Bureau is finalizing the proposed rule, with the clarifications noted above. The final rule will require consumer reporting agencies to accept trafficking and other documentation from consumers, process the submissions, and block any adverse item of information identified by the consumer that resulted from a severe form of trafficking in persons or XXXX trafficking under 1022.142 ( d ) ( e ) ) Authority to decline or rescind a block. A consumer reporting agency may decline to block, or may rescind any block of, adverse items of information resulting from a severe form of trafficking in persons or XXXX trafficking, in accordance with the timing requirements under paragraph ( e ) ( 2 ) ( ii ) of this section, only where the consumer reporting agency can not reasonably confirm the appropriate proof of identity under paragraph ( b ) ( 1 ) of this section for the consumer, and, if applicable, the consumers representative, the consumer can not provide documentation consisting of a victim determination under paragraph ( b ) ( 6 ) ( i ) of this section, or the consumer reporting agency can not properly identify the adverse items of information under paragraph ( b ) ( 6 ) ( ii ) of this section. A consumer reporting agency may not, however, decline to block or rescind any block of adverse information identified by the consumer or if applicable, the consumers representative, based on the validity of the facts or circumstances detailed in the contents of the submitted trafficking documentation as defined in paragraph ( b ) ( 6 ) of this section.

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with non-monetary relief