Consumer complaint received 2020-04-09
Company: Experian Information Solutions Inc.
State: VA
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: Difficulty submitting a dispute or getting information about a dispute over the phone

Complaint:
On XX/XX/2020 I contacted Experian to inquire about why credit score dropped 27 points when I paid off two credit cards. I attempted to contact them via telephone and was unable to reach them after multiple attempts. I was finally able to reach someone via chat after being forced to purchase their product to inquire as to why my score dropped. The agent was not helpful and couldn't provide a valid reason why such a steep drop. I have attached a copy of our chat for your review. 

I'm filing a complaint against Experian to force them to explain their seemingly fraudulent algorithm that penalizes consumers for paying off debt. I currently have three positive revolving lines of credit and my score should not have decreased by 27 points for paying off my credit cards. 

Experian own website states that credit card utilization is best when card usage is lower ; see screenshot. So why did it drop 27 points when in fact it had been increasing over the past 5 years? 

Any negative information on my file that was previously there was years prior and did not affect my score when it was on the rebound. To the best of my knowledge except for " old '' disputed accounts my credit report is accurate. What is not accurate is my credit score based on previous history. 

Over the past few years my Experian score increased to XXXX by ensuring all my creditors were paid on time. So it seems highly illogical possibly borderline fraudulent that my score would decrease when I paid off my credit cards. Experian reasoning to reduce my score due to low credit utilization contraindicates their stated message of " keeping a low balance will increase your credit score ''. It also doesn't explain such a huge drop in score. 

You can't reach anyone via telephone at Experian and their chat is useless. However, they charge you money to view your credit report with no intention of assisting you if an issue arises. 

Here is the most ironic thing I used their score simulator to see what my score would be if I paid off my student loan and my score only increased by 20 points??? How is that possible? For clarity if I pay off {$500.00} credit balance my credit score decreases by 27 points, however if I pay off a six-figure student loan my score only increases by 20 points??

Whoever Experian hired to write their algorithm program created a flawed or fraudulent product which prevents hard working individuals such as myself from moving forward in life. I have attached a sample list of other complaints by consumers criticizing credit bureaus like Experian for reducing credit scores after paying off a debt. 

During these times I can not allow my score to be decreased due to misleading and false information advertised on Experian website. To resolve this issue I am requesting that my 27+ points that was deducted from my credit score be added back to my current score of XXXX.

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