Consumer complaint received 2023-10-15
Company: EQUIFAX, INC.
State: TX
Product: Credit reporting or other personal consumer reports
Sub-product: Credit reporting
Issue: Improper use of your report
Sub-issue: Reporting company used your report improperly

Complaint:
I sent this detailed letter to XXXX XXXX XXXX On XX/XX/2023 - NOTICE TO AGENT IS NOTICE TO PRINCIPAL NOTICE TO PRINCIPAL IS NOTICE TO AGENT YOU ARE HEREBY PUT ON NOTICE Dear President and General Manager, XXXX XXXX, I hope this letter finds you well. I am writing to address a matter of grave concern regarding the accuracy of the information that XXXX XXXX XXXX has been reporting to consumer reporting agencies. I am compelled to bring to your attention the relevant provisions within consumer protection laws, specifically 15 U.S. Code 1681a, 1681, and 1681s2, which emphasize the paramount importance of accuracy, fairness, and the safeguarding of consumer rights in credit reporting. 

The findings of Congress, as enshrined in 15 U.S. Code 1681, underscore the vital role that accurate credit reporting plays in the efficiency of the banking system and in maintaining public confidence. It is unequivocally clear that a comprehensive mechanism exists for assessing the creditworthiness of consumers, and it is incumbent upon consumer reporting agencies to discharge their responsibilities with scrupulous fairness, impartiality, and the utmost regard for consumer privacy.

In particular, 15 U.S. Code 1681a defines crucial terms relevant to my case. It introduces the term " exclusions, '' which signifies that certain categories of information are not to be included in a consumer report. Notably, exclusions refer to information excluded from the definition of a " consumer report, '' and this definition is essential in understanding the limits and scope of information that may be reported to consumer reporting agencies.

It is essential to emphasize that consumer reporting agencies are private companies, and there is no contractual agreement between myself and XXXX XXXX XXXX, especially considering the account is closed and has been legally written off. This fact raises pertinent questions about the disclosure of my private information to a private company without an ongoing contractual relationship. The legality of such disclosures merits scrutiny.

Furthermore, the practice of reporting utilizations when there is no utilization, except as provided in paragraph 3 of 15 U.S. Code 1681a, is perplexing. Paragraph 3 of this statute states that the term " consumer report '' does not include a " report containing information solely as to transactions or experiences between the consumer and the person making the report. '' Therefore, reporting transactions or experiences to consumer reporting agencies when no ongoing transactions or experiences exist requires justification under the law.

In addition to the above legal arguments, it is crucial to consider that payment history is integral to the transactions or experiences between the consumer and the person. Reporting payment history after an account is closed and written off may raise questions regarding compliance with federal laws governing consumer credit reporting.

Based on these legal arguments and in light of the aforementioned legal framework, I have become aware of a troubling disparity in my consumer report. While my consumer report indicates that a past due amount of " {$6300.00} '' exists, it is crucial to clarify that I am only legally obligated to pay " {$190.00}, '' in strict compliance with IRS regulations. Moreover, I am fully cognizant that " {$6200.00} '' has been rightfully written off.

This egregious misreporting has inflicted severe and far-reaching harm upon my character, reputation, credit prospects, overall quality of life, and quest for financial security and happiness.

In light of these circumstances, I urgently implore XXXX XXXX XXXX to take the following immediate actions : Rectify the inaccuracies within my consumer report without delay, ensuring that it accurately reflects the legally obligated amount of " {$190.00} ''. 

Cease reporting any private, personal information or any utilization of the card since the contractual agreement no longer exists, and the debt has been legally written off. 

Initiate discussions to establish a suitable payment arrangement for the legally owed amount of " {$190.00}. '' Under 15 U.S. Code 6802 ( b ) related to the opt-out provision, it is important to note that a financial institution like XXXX XXXX XXXX may not disclose non-public personal information to a non-affiliated third party, such as credit reporting agencies like XXXX, XXXX, and Equifax, unless they clearly and conspicuously disclose to the consumer in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title that such information may be disclosed to such third party. Additionally, the consumer is given the opportunity before the time that such information is not disclosed to such third party and the consumer is given an explanation of how to exercise that non-disclosure option. I want to emphasize that under 15 U.S. Code 6802, I was never given the explanation of how the consumer can exercise that non-disclosure option.

In closing, I wish to reiterate the fundamental issues at the heart of this dispute. Credit utilization should not have been reported in the first place, as closed accounts can not report due to their closed status. Additionally, written-off debts fall under the category of canceled debt within IRS regulations and provisions, further emphasizing the inaccuracies in the reporting. 

Experiences or transactions between the consumer and entities like XXXX XXXX XXXX should not have been reported in the first place, and the failure to provide a disclosure on how to exercise the " opt-out '' option represents a violation of the law. This situation is particularly concerning as it appears to take advantage of consumers who may not be fully literate in interpreting legal intricaciesa practice that should be condemned. 

I earnestly recommend that these measures be executed within a reasonable timeframe of [ 30 days ] to avert any potential legal consequences. I firmly believe that XXXX XXXX XXXX will uphold the principles enshrined in consumer protection laws, ensuring the utmost accuracy, fairness, and safeguarding of consumer rights.

Kindly provide written confirmation detailing the steps taken to rectify the inaccuracies present in my consumer report.

I must stress that my rights under the FCRA, 15 U.S. Code 6802, and other relevant laws are not to be taken lightly. Failure to heed this formal dispute and cease-and-desist request may result in grave legal repercussions, including potential legal action on my part to safeguard my rights under the FCRA, 15 U.S. Code 6802, and other pertinent consumer protection statutes. I am fully prepared to explore all available legal avenues to protect my interests.

This letter stands as a formal notice to your organization of my dispute and demands, and it serves as unequivocal notice of my intent to assert my rights under the FCRA, 15 U.S. Code 6802, and other applicable laws, including 15 U.S. Code 1681a, 1681, and 1681s2. Your immediate attention to this matter is not only anticipated but imperative. The inaccuracies under scrutiny have already caused substantial damage to my credit profile, and their swift correction is paramount.

-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- XXXX XXXX XXXX Sent Back this letter on XXXX ( a photocopy will be in the attachments ) - We received your recent dispute regarding certain information contained in your consumer report for the above referenced account. Cardmember Service takes your concerns about accurate consumer reporting seriously.

The Fair Credit Reporting Act is a consumer protection law that governs information collected by consumer reporting agencies such as credit bureaus. The law requires that any information that creditors report to consumer reporting agencies must be accurate. It is our policy to report accurately to the consumer reporting agencies.

We have conducted an investigation of the dispute and reviewed all of the relevant information your provided. Based on our investigation we have determined the account information submitted by cardmember service to the consumer reporting agencies is accurate.

If your have any further questions about your credit score or your consumer report you may contact the consumer reporting agencies directly. -- Then they list the 3 agencies.

Company response to consumer: Closed with explanation