Consumer complaint received 2022-05-20
Company: TRANSUNION INTERMEDIATE HOLDINGS, INC.
State: AZ
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Incorrect information on your report
Sub-issue: Information belongs to someone else

Complaint:
XX/XX/XXXX Dispute to Transunion for fraud and violation of FDCPA of account DES Child Support did not remove account XX/XX/XXXX letter by certified mail sent to DES Child Support to remove fraudulent account XXXX XXXX  XXXX letter by certified mail sent to DES Child Support to remove fraudulent account XX/XX/XXXX Dispute to Transunion for fraud and violation of FDCPA of account DES Child Support did not remove account and also sent the '***Important Notice*** Credit Reports for collection of delinquent child support, judgments, fines and liens may no longer be permitted ' Letter : Federal courts recently have issued rulings about the use of consumer reports for the collection of an account under the Fair Credit Reporting Act ( FCRA ). 1 These cases note that certain definitions were added to the FCRA as part of the XXXX  amendments ( FACT Act ). In particular, the word credit was defined. As a result of the new definition the position that is being advocated is that a collection of an account is a permissible purpose to obtain a consumer report only when the collection is in connection with a credit transaction.

The courts have specifically rejected prior case law and FTC guidance that a judgment creditor had permissible purpose, noting that those decisions pre-dated the FACT Act. These cases have held that a delinquent child support obligation, municipal fines arising from parking tickets, and a statutory debt resulting from the towing and impound of an illegally parked vehicle did not arise from a credit transaction. As a result, the courts found that collection of those accounts was not a valid permissible purpose to obtain a consumer report. 
If you use TransUnion consumer report services in connection with the collection of an account, we advise you to promptly review the new case law with your regular attorney or compliance advisor. 
TransUnion will be contacting each customer that is a third-party collector to discuss this issue. We expect to confirm with you that you are in compliance with this new interpretation. Until then, unless you advise otherwise, we are relying upon you to comply with your contract with TransUnion and this new interpretation of the law. This means that you may obtain TransUnion reports for collection purposes only when collecting on an obligation arising from a credit transaction, or where you have the written authorization of the consumer or a court order to obtain a consumer report.

As an example, for collectors of delinquent child support debt, judgments, fines, or liens, you must have in hand : A court order authorizing a consumer reporting agency to provide a consumer report, A written authorization from the debtor to obtain a consumer report, or Some type of contractual agreement with the consumer that rises to the level of a credit transaction under law. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX, Case XXXX, XX/XX/XXXX ( XXXX Illinois ) ; XXXX XXXXXXXX XXXX XXXXXXXX XXXX XXXX & XXXX XXXX XXXX XXXX XXXX XXXX XXXX Case : XXXXXXXX XXXX XXXX, XX/XX/XXXX ( XXXX Illinois ), XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX XXXX, XX/XX/XXXX ( XXXX XXXX XXXX XXXX XXXX XXXX. 
transunion.com Transunion has still failed to remove account. This fraudulent account is making it hard for me to purchase a car, get approved on application for a home, and for application of credit cards. I did not take out a 'loan ' with DES Child Support and by law TRANSUNION is not allowed to report such an account.

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