Consumer complaint received 2024-09-15
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 BENEFICIARY XXXX XXXX  XXXX XXXX XXXX XXXX XXXX CA XXXX XX/XX/XXXX Consumer Financial Protection Bureau XXXX XXXX XXXX XXXX, IA XXXX XXXX : Formal Complaint Against Third-Party Debt Buyers for Re-Aging Charged-Off Accounts, Reporting False Contracts, and Violations of the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) Dear CFPB, I am submitting this formal complaint regarding multiple violations of the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) committed by third-party debt buyers who have purchased charged-off debts. These companies have reported altered debt dates, re-aged accounts, and continue to use original contracts to misrepresent their legal standing. Additionally, they have reported these accounts as open, which is a violation of federal law, as charge-offs are considered income and can not be reported as an active debt.

1. Reporting of Re-Aged Debts by Third-Party Buyers Violations of 15 U.S. Code 1681s-2 ( a ) ( 1 ) Under 15 U.S. Code 1681s-2 ( a ) ( 1 ), furnishers are required to provide accurate and truthful information to credit reporting agencies. However, third-party debt buyers have illegally altered the debt dates of charged-off accounts and re-aged them to create the appearance of a more recent debt. This practice is a direct violation of federal law and has been committed by the following entities : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  These companies are reporting debts that have been sold to them but continue to use the original contract terms and falsely claim the debt is still active. This misrepresentation is both deceptive and unlawful, as there is no valid contract between me and these third-party debt buyers. 
2. Alteration of Debt Dates Violations of 15 U.S. Code 1681c Under 15 U.S. Code 1681c, adverse information, including charge-offs, must be removed from credit reports after seven years. These third-party companies have illegally altered the original charge-off dates to make the debts appear recent, which extends their reporting period far beyond the legal limit. This illegal re-aging has been committed by : XXXX XXXX XXXX Altering the charge-off date to XX/XX/XXXX. 
XXXX XXXX XXXX Altering the charge-off date to XX/XX/XXXX. 
XXXX Altering the charge-off date to XX/XX/XXXX. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX XXXX XX/XX/XXXX XXXX XXXX in XX/XX/XXXX These altered dates are misleading and prolong the damage to my credit, violating the FCRA 's reporting limits.

3. Reporting of Charged-Off Debt as Income Violations of 15 U.S. Code 1681c Under 15 U.S. Code 1681c, charge-offs are considered income and can not be reported as active debts with ongoing payments due. However, these third-party debt buyers have continued to report these charged-off accounts as open and active, despite the fact that they have been charged off as income and are no longer collectible under the terms of the original contract. This has been committed by : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  XXXX XXXX The reporting of charge-offs as open accounts and falsely indicating that payments are due is not only misleading but also a violation of my consumer rights under the FCRA. This practice distorts my financial standing and causes undue harm to my credit profile.

4. Creation of Fake Contracts and Reporting Using Original Contract Terms Violations of 15 U.S. Code 1681b Under 15 U.S. Code 1681b, consumer reports may only be accessed and used by parties who have a valid contract with the consumer. Third-party debt buyers, such as XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX and XXXX, have no contractual relationship with me, yet they continue to report debts using the original contract terms. This misrepresentation is illegal and constitutes fraud under the FCRA. 
These companies are fabricating false contracts and claiming debts that do not legally belong to them. This is a violation of my rights as a consumer, and they must immediately cease reporting these debts.

5. Violations of the FDCPA 15 U.S. Code 1692e and 1692f The debt buyers involved have violated the Fair Debt Collection Practices Act ( FDCPA ) by engaging in the following unlawful activities : Misrepresenting the debt by altering the dates and falsely reporting the original contracts ( in violation of 15 U.S. Code 1692e ).

Attempting to collect on debts without a valid contract, which constitutes unfair collection practices under 15 U.S. Code 1692f.

Harassing communication through continued false reporting, despite disputes filed with the credit reporting agencies.

6. Remedies and Fines Under 15 U.S. Code 1681n and 1681o The willful and negligent non-compliance with the FCRA and FDCPA by these third-party debt buyers entitles me to the following remedies under 15 U.S. Code 1681n and 15 U.S. Code 1681o : Statutory damages of up to {$1000.00} per violation.

Actual damages for the harm to my credit standing caused by these illegal reports. 
Punitive damages for willful violations of federal law. 
Recovery of legal fees and costs incurred while addressing these violations.

Dispute of Unlawful Reporting of School Department Loans Violations of Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) Dear to whom it may concern I am writing to formally dispute the inaccurate and unlawful reporting of my school department loans by your organization, [ School Department or Loan Servicer Name ]. The manner in which these loans have been reported constitutes multiple violations of federal laws, including the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681, and the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692. This letter serves as a demand for immediate corrective actions, including the removal of inaccurate information from my credit report and the imposition of appropriate fines and penalties for your non-compliance.

1. Inaccurate Reporting of Student Loans Violations of FCRA, 15 U.S.C. 1681b Under 15 U.S.C. 1681b ( a ), consumer credit reports may only be furnished for specific permissible purposes, such as existing credit relationships, applications for credit, insurance, employment, or other legitimate reasons as defined by the FCRA. The reporting of my student loans by [ School Department or Loan Servicer Name ] contains inaccuracies that are misleading and violate my rights under the FCRA. 
Agency XXXX Specific Inaccuracies Identified : Incorrect Loan Balances : Reported balances do not reflect the actual amounts owed. 
Re-Aging of Loans : Altered dates that inaccurately extend the reporting period of my student loans. 
False Contract Terms : Reporting obligations based on incorrect or nonexistent contracts.

2. Re-Aging of Student Loans and Alteration of Payment Dates Violations of FCRA, 15 U.S.C. 1681c According to 15 U.S.C. 1681c ( a ) ( 1 ), adverse information, including student loans, must be removed from a consumers credit report after seven years from the date of the original delinquency. Your practice of re-aging my student loans by altering the original delinquency dates to make them appear more recent is illegal. This re-aging extends the reporting period beyond the legally permissible timeframe, causing undue harm to my creditworthiness.

3. Misreporting Charge-Offs as Income Violations of FCRA and IRS Regulations Charge-offs are classified as income for creditors and can not be reported as active debts requiring ongoing payments. Additionally, issuing a 1099-OID for a charge-off is a misrepresentation, as it falsely categorizes the charge-off as taxable income. This misreporting violates both 15 U.S.C. 1681c ( a ) and IRS guidelines, which prohibit the classification of non-taxable charge-offs as taxable income.

4. False Representation of Contractual Obligations Violations of FDCPA, 15 U.S.C. 1692e and 1692f The Fair Debt Collection Practices Act ( FDCPA ) prohibits debt collectors from using false or misleading representations when attempting to collect a debt. By reporting debts based on contracts that I do not have with your organization, you are : Misrepresenting the Nature of the Debt : Creating false contractual obligations.

Attempting to Collect Without a Valid Contract : Violating 15 U.S.C. 1692f, which prohibits unfair practices in debt collection.

This practice is a direct violation of federal law and has been committed by the following entities : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  5. Harassment and Unfair Practices Violations of FDCPA Your continued inaccurate reporting and attempts to collect debts based on false information constitute harassment and unfair debt collection practices under the FDCPA. These actions not only infringe upon my consumer rights but also cause undue stress and harm to my financial standing. 
This practice is a direct violation of federal law and has been committed by the following entities : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXRe : Formal Dispute of Inaccurate Payment History Entries Violations of Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) Dear I am writing to formally dispute the inaccuracies in my payment history as reported by your company, [ Company Name ], on my credit report. These inaccuracies constitute multiple violations of federal laws, including the Fair Credit Reporting Act ( FCRA ), 15 U.S. Code 1681, and the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S. Code 1692. I demand immediate corrective actions, including the removal of inaccurate information, imposition of fines, and enforcement of compliance with relevant laws.

1. Inaccurate Reporting of Payment History Violations of FCRA, 15 U.S.C. 1681b This practice is a direct violation of federal law and has been committed by the following entities : XXXX XXXX  XXXX XXXX XXXX XXXX XXXX employment, or other legitimate reasons as defined by the FCRA. The payment history entries reported by [ Company Name ] contain inaccuracies that are not only misleading but also violate my rights under the FCRA. 
Specific Inaccuracies Identified : Incorrect Late Payment Dates : Entries showing late payments on dates when payments were made on time. 
Re-Aging of Debt : Altered dates that inaccurately extend the reporting period of charged-off accounts.

False Contract Terms : Reporting payment obligations based on contracts that I do not have with your company.

2. Re-Aging of Debt and Alteration of Payment Dates Violations of FCRA, 15 U.S.C. 1681c Under 15 U.S.C. 1681c ( a ) ( 1 ), adverse information, including late payments and charge-offs, must be removed from a consumers credit report after seven years from the date of the original delinquency. Your practice of re-aging my debts by altering payment dates to make them appear more rec This practice is a direct violation of federal law and has been committed by the following entities : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX is illegal and constitutes a direct violation of the FCRA.

3. Misreporting Charge-Offs as Income Violations of FCRA and IRS Regulations Charge-offs are classified as income for creditors and can not be reported as active debts requiring ongoing payments. Additionally, issuing a 1099-OID for a charge-off is a misrepresentation, as it falsely categorizes the charge-off as taxable income. This misreporting violates both 15 U.S.C. 1681c and IRS guidelines, which prohibit the classification of non-taxable charge-offs as taxable income.

This practice is a direct violation of federal law and has been committed by the following entities : XXXX XXXX  XXXX XXXX XXXX XXXX  XXXX  4. False Representation of Contractual Obligations Violations of FDCPA, 15 U.S.C. 1692e and 1692f The Fair Debt Collection Practices Act ( FDCPA ) prohibits debt collectors from using false or misleading representations when attempting to collect a debt. By reporting debts based on contracts that I do not have with your company, you are : Misrepresenting the Nature of the Debt : Creating false contractual obligations.

Attempting to Collect Without a Valid Contract : Violating 15 U.S.C. 1692f, which prohibits unfair practices in debt collection. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  5. Harassment and Unfair Practices Violations of FDCPA Your continued inaccurate reporting and attempts to collect debts based on false information constitute harassment and unfair debt collection practices under the FDCPA. These actions not only infringe upon my consumer rights but also cause undue stress and harm to my financial standing. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXRe : Formal Dispute of Unauthorized Sale and Reporting of Charged-Off Debt Violations of Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) Dear [ Recipient 's Name ], I am writing to formally dispute the unauthorized sale and improper reporting of my charged-off debts by your company, [ Company Name ]. The actions taken by your organization constitute multiple violations of federal laws, including the Fair Credit Reporting Act ( FCRA ), 15 U.S. Code 1681, and the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S. Code 1692. This letter serves as a demand for immediate corrective actions, including the removal of inaccurate information from my credit report and the imposition of appropriate fines and penalties for your non-compliance. 
1. Unauthorized Sale and Assignment of Charged-Off Debt Violations of FCRA, 15 U.S.C. 1681s-2 ( a ) ( 1 ) Under 15 U.S.C. 1681s-2 ( a ) ( 1 ), furnishers of information to credit reporting agencies must ensure that all data provided is accurate and that they have the legal authority to report such information. Your company has unlawfully sold my charged-off debt to third-party debt buyers without my consent or a valid contractual relationship. This unauthorized sale and subsequent reporting violate my rights under the FCRA. 
XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX 2. Re-Aging of Debt and Alteration of Debt Dates Violations of FCRA, 15 U.S.C. 1681c XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX According to 15 U.S.C. 1681c ( a ) ( 1 ), adverse information, including charge-offs, must be removed from a consumers credit report after seven years from the date of the original delinquency. Your practice of re-aging my debt by altering the original charge-off dates to make them appear more recent is illegal. This re-aging extends the reporting period beyond the legally permissible timeframe, causing undue harm to my creditworthiness.

3. False Reporting of Charge-Offs as Active Debts and Income Violations of FCRA and IRS Regulations Charge-offs are considered income for creditors and should not be reported as active debts requiring ongoing payments. Additionally, issuing a 1099-OID for a charge-off is a misrepresentation, as it falsely categorizes the charge-off as taxable income. Under 15 U.S.C. 1681c ( a ), it is illegal to report charge-offs as active debts or income. This misreporting distorts my financial obligations and negatively impacts my credit profile.

4. Reporting of Closed Accounts as Open Violations of FCRA, 15 U.S.C. 1681c ( a ) Your company has improperly reported my closed charge-off accounts as open and active. Under 15 U.S.C. 1681c ( a ) ( 3 ), closed accounts must be clearly marked as such on credit reports. Reporting closed accounts as open misleads creditors and adversely affects my ability to obtain new credit under favorable terms.

5. Harassment and Unfair Debt Collection Practices Violations of FDCPA, 15 U.S.C. 1692e and 1692f Your debt collection practices, including repeated unauthorized reporting and attempts to collect debts without a valid contractual basis, infringe upon the Fair Debt Collection Practices Act ( FDCPA ). Specifically : 15 U.S.C. 1692e prohibits false or misleading representations regarding the nature or status of a debt.

15 U.S.C. 1692f prohibits unfair practices in the collection of debts, including attempting to collect debts without a valid contract.

I have attached clear copies of violation with proof where third parties say charged off account is there's I circled all incorrect information an violationa and added violation to circle