Consumer complaint received 2023-11-23
Company: Experian Information Solutions Inc.
State: MD
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Account status incorrect

Complaint:
I am writing to express concerns regarding potential violations of the Fair Credit Reporting Act ( FCRA ) and the Title VI Consumer Protection Act Law 15 U.S.C. 1681-1681x by XXXX XXXX XXXX Specifically, I am concerned about your credit reporting practices, which may include reporting payment delinquencies after the payment has been processed, rather than based on the date the payment has been received and XXXX XXXX waiting to properly credited to the account. Moreover, it takes 5 days to change financial institutions if a customer would like to redirect their payment from an alternate account. Additionally, I am concerned about the potential marginalization of people of color who already have disproportionate credit scores.

Under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Consumer Financial Protection Bureau ( CFPB ) was granted rule-making authority over the FCRA. The Dodd-Frank Act also introduced amendments to the FCRA, requiring the disclosure of credit scores and related information when a credit score is used in taking an adverse action.

It is essential to ensure that credit reporting practices are accurate and fair. Reporting payment delinquencies based on the date a payment is processed, rather than the date it has been received and properly credited, may lead to inaccurate credit reporting and negatively impact individuals ' credit scores and future credit opportunities. Such practices may be in violation of the FCRA, which requires fair and accurate credit reporting.

Furthermore, it is important to address the potential marginalization of people of color who already face disproportionate credit scores. The Title VI Consumer Protection Act Law prohibits discrimination in programs and activities that receive federal financial assistance. By marginalizing individuals with already disproportionate credit scores, XXXX XXXX may potentially be in violation of this law. 

In addition to the FCRA and the Title VI Consumer Protection Act Law, it is crucial to ensure compliance with the Fair Debt Collection Practices Act ( FDCPA ) and the Community Reinvestment Act ( CRA ). The FDCPA mandates fair treatment, accurate representation of debt information, and prompt resolution of consumer disputes. The CRA requires activities that meet the credit needs of all segments of the communities you serve, including historically underserved populations. Compliance with these acts is essential to maintain fair and equitable practices in debt collection and community reinvestment. 

Lastly, it is important to assess and address any algorithmic biases in your banking algorithms. Biases in algorithms can perpetuate discrimination and unfair treatment. XXXX XXXX XXXX emphasizes the need to address biases in algorithms used in decision-making processes.

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 explanation