Consumer complaint received 2024-07-05
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: U.S. BANCORP (NC)

Demand for Reinvestigation Under FCRA and TILA Dear Elan Financial Services, I am writing to formally demand a reinvestigation of my credit card accounts due to the unsatisfactory resolution of my initial dispute. Your previous investigation did not address the critical issues I raised. I am requesting this reinvestigation in accordance with my rights under the Fair Credit Reporting Act ( FCRA ), which mandates accurate and fair credit reporting, and TILA. 

Facts of the Dispute Account Opening and Standing : On XX/XX/XXXX, I was approved for the XXXX XXXX XXXX, as evidenced by the attached approval email. My account was in good standing with no late payments, which demonstrates that I was a responsible cardholder. 

Unjustified Account Closure : I was informed that my account was being closed due to suspicion of fraud. No proof or factual reason was provided despite my requests, and the customer service representative was unprofessional and disrespectful.

Loss of Access and Billing Statements : Following this closure, I stopped receiving billing statements, and my online access to the account was blocked. This prevented me from managing my account and verifying my financial obligations. 

Negative Reporting : Despite my account being in good standing before the closure, Elan Financial Services reported late payments to the credit reporting agencies ( CRAs ), adversely affecting my credit report and standing.

Elan Financial Services ' Letter ( XX/XX/XXXX ) Elan 's Point : " Our records confirm your XXXX XXXX XXXX XXXX account ending in XXXX and your XXXXXXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX ending in XXXX were closed on XX/XX/XXXX, and the enclosed notification letters were mailed to you on XX/XX/XXXX. Our ability to terminate an account is supported by your Cardmember Agreement ( Agreement ), which was provided to you upon the establishment of each of your accounts. '' Rebuttal : According to the Fair Credit Billing Act ( an amendment to TILA ), creditors must provide clear, accurate, and timely communication regarding any actions on an account. Closing an account without substantial proof or a factual basis violates this requirement. This lack of transparency constitutes a breach of TILA. Under the FCRA, if an adverse action is taken based on suspected fraud, the creditor must notify the consumer and provide specific reasons for the action. Your failure to provide such proof or specific reasons violates both TILA and FCRA. 

Relevant Case Law : XXXX XXXX XXXX, XXXX. XXXX XXXX ( XXXX ) : The Supreme Court ruled that sufficient notice must be provided before increasing interest rates, emphasizing the need for clear and transparent communication as required by TILA ( 562 U.S. 195 ). 
XXXX v. XXXXXXXX XXXX  ( XXXX ) XXXX XXXX ( XXXX ) : The court held that failing to provide adequate notice before altering credit terms violates TILA ( 280 F.3d 384 ).

Elan 's Point : " Due to the status of your accounts, we are unable to reinstate your online account access. Your account ending in XXXX is currently enrolled in electronic statements only ; however, as you are now unable to access the billing statements online, we unenrolled your account from electronic statements so that your future statements will be mailed. '' Rebuttal : Under TILA ( Regulation Z ), creditors must provide periodic statements for open-end credit accounts at least 21 days before the payment due date. By ceasing to send billing statements and blocking my online access, Elan Financial Services has failed to meet these requirements, hindering my ability to manage my account and verify my obligations. This failure constitutes a clear violation of TILA. 

Relevant Case Law : In re XXXX XXXX XXXX  XXXX ( XXXX ) : The court emphasized the importance of periodic statements and clear communication to borrowers ( 471 F.3d 977 ). 
XXXX XXXX XXXX XXXXXXXX XXXX  ( XXXX ) : The court found that failing to provide timely and accurate billing statements violated TILA ( 545 F.3d 570 ).

Elan 's Point : " It is our policy to report accurately to the consumer reporting agencies, including reporting delinquencies when an account is XXXX or more days past due. '' Rebuttal : The FCRA mandates that information reported to CRAs must be accurate and complete. Reporting late payments after unjustifiably closing my account and preventing access to billing information and account management tools resulted in inaccurate reporting. This action violated the FCRA, causing undue harm to my creditworthiness and reputation. 

Relevant Case Law : XXXX XXXX XXXX XXXX XXXX, XXXX ( XXXX ) : The court ruled that creditors must ensure the accuracy of the information reported to CRAs, constituting a violation of the FCRA ( 257 F.3d 409 ). 
XXXX XXXX XXXX XXXX XXXX ( XXXX ) : The court held that CRAs and creditors are liable for reporting inaccurate information, emphasizing the need for meticulous accuracy in credit reporting ( 115 F.3d 220 ).