Consumer complaint received 2024-09-28
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: Experian Information Solutions Inc. (CA)

XXXX XXXX, XXXX XXXX XXXX XXXXXXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX CA XXXX XXXX : Response to Complaint XXXX Dispute of Fraudulent Account** DeaXXXX XXXX XXXX XXXX, I am writing in response to complaint number XXXX regarding the fraudulent *XXXX XXXX XXXX account ( Account Number : XXXX ), which was opened in my name without my knowledge or authorization. 

As previously stated, I have provided you with an official XXXX Police Department Identity Theft Report** ( Report Number : XXXX ) filed by XXXX *XXXX XXXX XXXX Badge Number XXXX XXXX ). Under the **Fair Credit Reporting Act ( FCRA ) Section 605B**, you are **legally required** to block and remove any information identified as fraudulent when presented with such a report. 

Despite this, the XXXX account remains on my credit report, causing harm to my creditworthiness and violating federal law. I must reiterate that I did not open this account, and you have not provided verifiable proof that I did. 

I am requesting that you take the following actions immediately : XXXX. **Block and remove** this fraudulent XXXX account from my credit report in compliance with the FCRA. 
XXXX. Provide **written confirmation** within XXXX XXXX that the account has been removed. 
XXXX. Ensure that no future reports of this account are sent to any credit reporting agency. 

If this issue is not resolved promptly, I will escalate the matter by filing additional complaints with the **Consumer Financial Protection Bureau ( CFPB ) ** and seeking legal recourse under the FCRA XXXX 

Thank you for your immediate attention to this matter. I look forward to your prompt compliance. 

Sincerely, **XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX CA XXXX ( XXXX ) XXXX XXXX -- - In both California and federal consumer laws, strict regulations exist to protect consumers, especially in cases of identity theft. If a consumer presents a police report proving identity theft, creditors, lenders, and furnishers of information ( such as credit reporting agencies ) are required to take specific actions under **federal** and **California state laws** XXXX Lets break this down : # # # **1. Federal Consumer Laws ( FCRA & CFPB 's Role ) ** Under **federal consumer law**, specifically the **Fair Credit Reporting Act ( FCRA ) **, a furnisher ( such as a lender ) has several responsibilities when a consumer disputes an account due to identity theft : # # # # **Key Provisions of FCRA Regarding Identity Theft** : 1. **Section 605B of the FCRA** : If a consumer provides a valid **police report** or an **FTC Identity Theft Affidavit**, the furnisher **must block** the reporting of any fraudulent information related to identity theft from the credit report within **four business days**. The lender can not continue reporting this fraudulent account unless there is verified proof that the consumer owes the debt. 

XXXX. **Duty to Investigate** : Furnishers must investigate the legitimacy of the dispute and can not simply ignore claims or provide inaccurate findings. 

XXXX. **Consumer Notification** : If the furnisher is unable to verify the debt or if it is found to be fraudulent, they must notify the **credit reporting agency** ( such as Experian, XXXX, or XXXX XXXX and **remove or correct the information** within 30 days. 

4. **Continuous Reporting is Illegal** : If a consumer provides proper documentation of identity theft, such as a **police report**, it is **illegal** under federal law for a creditor to continue reporting the account as valid. The furnisher can not act against the FCRA provisions. 

# # # # **Penalties for Violating Federal Law** : - **Civil Penalties** : Violations of the FCRA can result in lawsuits against the furnisher, with statutory damages ranging from ** {$100.00} to $ XXXX per violation, plus actual damages, punitive damages, and attorney 's fees. 
- **Enforcement by CFPB** : The **Consumer Financial Protection Bureau ( CFPB ) ** is tasked with enforcing the FCRA. They have the authority to bring legal actions against violators, issue fines, and force companies to change their practices. However, enforcement can sometimes be slow or lack follow-through, as the CFPB is often overloaded with cases. 

Despite the CFPB 's role in monitoring behavior, your frustration about their response can arise from the **limited action** they sometimes take. They may merely collect complaints rather than actively pursue every case with immediate enforcement. 

# # # # **CFPBs Role in Monitoring and Enforcement** : The **CFPB** is responsible for holding data furnishers accountable. When you submit complaints, the CFPB forwards these complaints to the company in question and monitors responses. However, if the CFPB fails to act quickly or allows companies to ignore violations, it creates a situation where consumers feel that justice is delayed or denied. Many consumers, like yourself, are left questioning **where the enforcement is** when companies continuously violate federal laws. 

# # # **2. California Consumer Laws ( CCPA & Identity Theft Protection ) ** Californias **Consumer Privacy Act ( CCPA ) ** and its related laws provide additional protections for consumers. California tends to have **stricter** consumer protection laws than federal standards. 

# # # # **Key Provisions of California Law on Identity Theft** : 1. **California Civil Code 1798.93 ( Identity Theft Protection Act ) ** : - If a consumer is a victim of identity theft, they can file a **civil lawsuit** in California to seek relief. California law also requires companies to take immediate action when identity theft is proven with documentation like a police report.

- **Blocking or Deleting Fraudulent Accounts** : Upon receiving a valid identity theft claim, the furnisher must stop reporting the fraudulent account to credit bureaus. Failure to do so allows the consumer to sue for damages under **California Civil Code**.

2. **California Fair Debt Collection Practices Act ( CFDCPA ) ** : - Similar to the **FCRA**, California has its own laws that regulate debt collection and reporting. Under these laws, if a furnisher knowingly reports false or unverified information ( after receiving a police report ), the consumer can seek **damages** through the courts.

# # # # **Penalties for Violating California Law** : - **Civil Lawsuits** : Consumers can sue under state law, which includes claims for actual damages, statutory penalties, and in some cases, **treble damages** ( three times the actual damages ). 
- **Statutory Fines** : If the furnisher continues to violate California laws after receiving an identity theft report, they may face fines and penalties. 

# # # **Enforcement Mechanisms in Both Systems** : XXXX. **Furnishers Responsibility** : Once a furnisher has been provided a police report or FTC identity theft affidavit, **both federal and California laws** require them to remove the fraudulent information **immediately**. Continuing to report the information after this is unlawful. 

XXXX. **CFPB Monitoring and Weak Enforcement** : - Although the CFPB collects complaints, consumers often feel that there is a lack of direct action. In some cases, the CFPB may not follow through with penalties against the violators, leaving furnishers free to continue their practices. The **parity** you mention arises because **lenders may disregard complaints**, knowing that **federal action** is unlikely or delayed. 

XXXX. **Filing Lawsuits** : - **Consumers can file individual lawsuits** under both federal and state laws. In California, if furnishers fail to comply, consumers have the right to sue in **civil court** for damages. This is an alternative if the CFPB fails to act. 

**Class-action lawsuits** are also common when companies systematically violate FCRA regulations. 

-- - # # # **Conclusion : Where is the Parity? ** The issue you raise about enforcement is a valid concern. Federal and state laws **clearly protect consumers** in cases of identity theft, but the **enforcement** of these laws is where the system often breaks down. While you have the **right to dispute** fraudulent information and expect compliance from furnishers, the **lack of swift action** from agencies like the **CFPB** can lead to frustration.