Consumer complaint received 2022-09-05
Company: Experian Information Solutions Inc.
State: NC
Product: Credit reporting, credit repair services, or other personal consumer reports
Sub-product: Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem
Sub-issue: Their investigation did not fix an error on your report

Complaint:
I, XXXX XXXX, am a consumer, a natural person. I am demanding notice to you that youre in violation of unfair and deceptive practices according to the Federal Trade Commission Act - 15 U.S.C. 45 and also 18 U.S.C. 8.

The following rule should be in the contract, if not that is a violation. The proceeds were supposed to pay for the debt but your company took the proceeds. When the obligation of this contract is fully met then the debt should have been fully paid by the proceeds.

1. According to the Holder in Due course Rule 6000 Consumer Protection states that 433.2Preservation of Consumers ' Claims and Defenses, Unfair or Deceptive Acts or Practices In connection with any sale or lease of goods or services to consumers, in or affecting commerce as " commerce '' is defined in the Federal Trade Commission Act, it is an unfair or deceptive act or practice within the meaning of Section 5 of that Act for a seller, directly or indirectly, to : ( a ) Take or receive a consumer credit contract which fails to contain the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

or, ( b ) Accept, as full or partial payment of such sale or lease, the proceeds of any purchase money loan ( as purchase money loan is defined herein ), unless any consumer credit contract made in connection with such purchase money loan contains the following provision in at least ten point, bold face, type : NOTICE ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

PURPOSE OF THE RULE In adopting this Rule the Commission determined that it constitutes an unfair and deceptive practice within the meaning of Section 5 of the Federal Trade Commission Act ( 15 U.S.C. 45 ) for a seller, in the course of financing a consumer purchase of goods or services, to employ procedures which make the consumer 's duty to pay independent of the seller 's duty to fulfill his obligations. In the course of public proceedings of the Rule the Commission documented numerous cases where consumer purchase transactions were financed in such a way that the consumer was legally obligated to make full payment to a creditor despite breach of warranty, misrepresentation, and even fraud on the part of the seller.

Under ordinary contract law, the promises of the parties to a sale transaction are mutually dependent. A seller is entitled to payment provided he delivers what he promised to deliver. If the seller fails to deliver what was promised, the consumer 's obligation to pay may be reduced or even eliminated. However, it is possible for a seller to arrange credit terms for buyers which separate the consumer 's legal duty to pay from the seller 's legal duty to keep his promises.

2.All late payments are illegal. Your company is in clear violation of the law under 15 USC 1681b- permissible purpose of consumer reports, THE LAW CLEARLY STATES : ( a ) IN GENERAL Subject to subsection ( c ) any consumer reporting agency may furnish a consumer report under the following circumstances and no other : ( 2 ) In accordance with the written instructions of the consumer to who it relates.

Did I give you written instructions to furnish this account on my credit report?

Furthermore, the FAIR CREDIT REPORTING ACT 15 USC 1681 ( 2 ) ( a ) ( I ) Exclusions from a consumer credit report clearly states : ( 3 ) EXCLUSIONS - the term consumer report does not include ( A ) Subject to section 1681-3 of this any - Report containing information solely as to transactions or experiences between the consumer and the person making the report ; Delete my late payment from my consumer report since you are in violation of 15 USC 1681. Late payments are illegal according to 15 U.S.C. Code 1605 & 15 U.S.C. 1666b.

3.Your company is not exempt from the law of right to rescind according to 16 CFR 433.1.

4. If the following notice is not in the original contract, it is not a binding contract according to 16 CFR 433.2. - ANY HOLDER OF THIS CONSUMER CREDIT CONTRACT IS SUBJECT TO ALL CLAIMS AND DEFENSES WHICH THE DEBTOR COULD ASSERT AGAINST THE SELLER OF GOODS OR SERVICES OBTAINED PURSUANT HERETO OR WITH THE PROCEEDS HEREOF. RECOVERY HEREUNDER BY THE DEBTOR SHALL NOT EXCEED AMOUNTS PAID BY THE DEBTOR HEREUNDER.

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