Consumer complaint received 2024-08-06
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Experian Information Solutions Inc. (MI)

In the matter at hand, Consumer ( Complainant ) alleges inaccuracies and material misrepresentations in credit reporting by Experian for XXXX XXXX XXXX ( XXXX XXXX XXXX XXXX XXXX corresponding account number XXXX. Despite multiple disputes and clear evidence of inaccuracies, Experian has consistently failed to correct the information, resulting in significant harm to Complainants creditworthiness and financial stability. This complaint outlines the pattern of noncompliance by Experian and the legal basis for XXXX 's claims. 
XXXX. BACKGROUND Experian has exhibited a consistent pattern of willful noncompliance with the Fair Credit Reporting Act ( FCRA ). Despite receiving multiple dispute notifications and clear evidence of misleading information reported, Experian has repeatedly failed to conduct proper ( re ) investigations as required under XXXX XXXX. XXXX. Furthermore, Experian has failed to implement and maintain processes and procedures to ensure maximum possible accuracy in the credit files it maintains regarding XXXX, as required under XXXX XXXX. XXXX ( b ). Experian has also failed to correct or delete information it could neither verify nor correct for the XXXX XXXX ( XXXX ) account/tradeline, in violation of XXXX XXXX. XXXX ( a ) ( XXXX ). 
This pattern of behavior is evident in the numerous direct and indirect disputes filed by Complainant, followed by the persistence of facially inaccurate information for the XXXX account/tradeline. XXXX actions demonstrate a reckless disregard for regulatory guidelines and a deliberate attempt to avoid rectifying the inaccuracies, causing significant harm to Complainants creditworthiness, financial stability, and health. The inaccurate reporting has also led to exacerbation of housing insecurity. 
Complainant is XXXX and has experienced the comorbidities of XXXX XXXX XXXX. Complainant contracted XXXX on at least XXXX ( XXXX ) occasions ( XX/XX/XXXX, XX/XX/XXXX, XX/XX/XXXX ) leading to prolonged periods of Long-COVID, also referred to as XXXX XXXX of XXXX XXXX ( PASC ), with symptoms including XXXX XXXX XXXX XXXX XXXX XXXX XXXX significantly increases the risk of XXXX XXXX or XXXX due to clotting, and recovery can be exacerbated and prolonged by undue XXXX 
Complainant manages ADHD through medication, but has faced obstacles renewing medications due to supply shortages and processing delays. Sudden cessation of these medications causes XXXX XXXX XXXX XXXX XXXX XXXX, XXXX, XXXX and XXXX 
Complainant has filed multiple disputes with Experian regarding patently false and inaccurate or misleading information in the files it maintains and reports regarding XXXX, specifically collection account/tradeline XXXX. The issues identified in Complainants indirect disputes include but are not limited to : XXXX. Lack of Proper Notice : XXXX failed to provide proper notice of the alleged debt to Complainants, as evidenced by the absence of any received communication or notice despite residing at the same address. 
XXXX. Failure to Verify Address : In the event XXXX provided XXXX with an outdated address, XXXX should have verified the accuracy of the address before sending any collection notices. The failure to ensure the notice reached XXXX further underscores TSIs failure to follow reasonable procedures. 
XXXX. Failure to Provide Validation Notice : XXXX failure to provide a validation notice within XXXX days of the initial communication, containing information about the debt and the Complainants right to dispute the debt, as required under XXXX XXXX. XXXX ( a ). 
XXXX. SUPPORTING FACTS XXXX. Initial Dispute Submission to XXXX Date : XX/XX/XXXX Direct Dispute : CFPB XXXX Action : Direct dispute regarding the XXXX collection account submitted to XXXX. 
XXXX. Initial Dispute Submission to Experian Date : XX/XX/XXXX Report Number : XXXX Action : Initial dispute regarding the XXXX XXXX account submitted to Experian XXXX the CFPB Complaint Portal. 
XXXX. Experian 's Initial Response Date : XX/XX/XXXX Report Number : XXXX Action : Experian XXXX receipt of the dispute. Confirmed the dispute was under investigation. 
XXXX. Completion of Initial Investigation by Experian Date : XX/XX/XXXX Report Number : XXXX Action : Experian XXXX its initial investigation and claimed the information was verified as accurate. This investigation was rapid and likely used automated processes ( XXXX ). 
XXXX. Modification of Dispute by Experian Date : XX/XX/XXXX Report Number : XXXX Action : Original dispute under was modified by an Experian XXXX ( Report Number XXXX ) XXXX. Another Reinvestigation by Experian Date : XX/XX/XXXX Report Number : XXXX Action : A new XXXX XXXX was filed with Experian XXXX. Experian 's Response to Modified Dispute Date : XX/XX/XXXX Report Number : XXXX Action : Experian XXXX receipt of the new XXXX XXXX and begins another reinvestigation XXXX. Experian 's Response to Modified Dispute Date : XX/XX/XXXX Report Number : XXXX Action : XXXX XXXX under Report Number : XXXX was modified. 
XXXX. Further Modification and Updates by Experian Date : XX/XX/XXXX Report Number : XXXX Action : Experian purports to have an update regarding XXXX XXXX ( Report Number XXXX ) XXXX. Acknowledgment from XXXX Date : XX/XX/XXXX Direct Dispute : CFPB XXXX Interim Response : XXXX acknowledges XXXX of the direct dispute and indicates they are beginning their investigation, with an expected follow-up within 45 days. 
XXXX. Experian Dispute Results Dispute Filed : XXXX XX/XX/XXXX Modified By Experian XXXX XXXX XX/XX/XXXX, with Report Number XXXX Results ( Report Number XXXX ) : XXXX XXXX XXXX not changed, stating company that reported the information has certified to Experian that the information XXXX accurate. 
IV. LEGAL ANALYSIS A. Violations of the Fair Credit Reporting Act ( FCRA ) Complainant alleges significant violations of the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) by Experian and XXXX XXXX XXXX ( XXXX ). Despite multiple disputes and clear evidence of inaccuracies, both entities have failed to conduct proper investigations, leading to continued reporting of misleading and unverifiable information. These actions have caused substantial harm to XXXX 's creditworthiness, financial stability, and health. Key violations include failure to provide proper notice, continued collection activity without verification, and removal of critical information such as the Date of First Delinquency ( DoFD ). 
XXXX. Failure to XXXX Reasonable Investigations Under the FCRA, consumer reporting agencies ( CRAs ) are required to follow reasonable procedures to ensure maximum possible accuracy of the information contained in consumer reports. Specifically : XXXX XXXX. XXXX ( a ) ( XXXX ) ( A ) mandates that if a consumer disputes the completeness or accuracy of any item of information contained in their file, the CRA must conduct a reasonable reinvestigation to determine whether the disputed information is inaccurate. 
XXXX XXXX. XXXX ( b ) requires that CRAs adopt reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. 
XXXX XXXX. XXXX ( a ) ( XXXX ) ( A ) mandates that data furnishers must accurately report the Date of First Delinquency ( DoFD ). If the XXXX is found to be inaccurate or is removed without a compliant replacement date, the information becomes unverifiable and incomplete. 
Case Law : XXXX XXXX XXXX XXXX XXXX Bank, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) : The court held that inaccurate information encompasses both false information and correct information that nevertheless create [ XXXX ] a materially misleading impression. 
XXXX v. XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Information in a consumer report must be both accurate and not misleading. 
Chaitoff v. Experian XXXX. Solutions, XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : [ I ] t is clear that a reasonable reinvestigation must mean more than simply making only a cursory investigation into the reliability of information that is reported to potential creditors. XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) ( citing XXXX, XXXX XXXX at XXXX ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX. XXXX XXXX ( XXXX XXXX. XXXX ) : XXXX on automated processes ( XXXX ) is insufficient for a reasonable reinvestigation under the FCRA. 
Consumer Financial Protection Bureau and Federal Trade Commission, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, No. XXXX, ( XXXX Cir. XX/XX/XXXX ) : XXXX. The text of the FCRA makes no distinction between factual and legal inaccuracies; importing a distinction between factual and legal inaccuracies into the law is unworkable in practice. 
XXXX. A consumer reporting companys reliance on a furnisher is not enough to satisfy its obligation to follow reasonable procedures. 
Relevance : Experian 's rapid completion of the investigation ( XXXX day ) and the reliance on automated dispute verification processes ( XXXX ) without substantive review, as suggested by the timelines, indicate a failure to conduct a reasonable reinvestigation. This is supported by the XXXX case, which found such reliance on automated processes inadequate. 
This failure is further evidenced by TSIs acknowledgment on XX/XX/XXXX, that it was just beginning its investigation, contradicting Experian 's assertion that the information was verified. 
XXXX. XXXX XXXX XXXX XXXX XXXX. XXXX ( b ) requires that CRAs adopt reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates. 
XXXX XXXX : XXXX v. XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Even technically accurate information can be misleading if it is misleading in such a way and to such an extent that it [ could have been ] expected to have an adverse effect [ on the consumer ]. 
XXXX XXXX Credit Bureau XXXX XXXX, XXXX XXXX XXXX ( XXXX XXXX. XXXX ) : Inaccurate credit reports by themselves can fairly be read as evidencing unreasonable procedures. 
XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : The failure to follow reasonable procedures can be inferred from the mere fact of an inaccuracy on a consumers credit report. 
Regulatory Opinions : Consumer Financial Protection Bureau and Federal Trade Commission, XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, No. XXXX, ( XXXX Cir. XX/XX/XXXX ) : Information is not rendered accurate merely because it is provided by a third-party furnisher and then passed on unaltered by the consumer reporting company. 
Relevance : Experian purports the DoFD was verified as accurate by XXXX on XX/XX/XXXX with a DoFD verified as XX/XX/XXXX. In contrast, XXXX purports the DoFD was verified as accurate by XXXX on XXXX XX/XX/XXXX with a XXXX of XX/XX/XXXX. The conflicting Date of First Delinquency ( DoFD ) reported by Experian and XXXX ( XX/XX/XXXX vs. XX/XX/XXXX ), which are alleged by both CRAs to have been verified by XXXX as accurate, indicate that the information reported within the Experian files maintained and disseminated regarding Complainant are not accurate and the information for the account/tradeline is materially misleading. 
Moreover, XXXX acknowledges beginning its investigation on or around XXXX XX/XX/XXXX ( CFPB XXXX ) regarding verification and validation of the debt with the purported original creditor. As of XX/XX/XXXX, XXXX has not verified or validated the debt with the original creditor and failed to do so within XXXX ( XXXX ) days after initial communication with Complainant. 

Conclusion : The combination of circumstances above indicates Experian has failed to conduct thorough investigations and reinvestigations and failed to ensure maximum possible accuracy of its files it maintains and disseminates regarding XXXX. Moreover, it indicates unreasonable procedures used by Experian in its investigation processes. 
XXXX XXXX XXXX and XXXX Provisions XXXX XXXX. XXXX ( a ) ( XXXX ) ( A ) mandates that if, after any reinvestigation, an item of information is found to be inaccurate, incomplete, or can not be verified, the consumer reporting agency ( CRA ) must delete or modify that item of information. 
XXXX XXXX. XXXX ( a ) requires that debt XXXX provide a validation notice within XXXX days of the initial communication, containing information about the debt and the consumers right to dispute the debt. 
XXXX XXXX. XXXX ( b ) states that if a consumer disputes a debt in writing within the XXXX period, the debt collector must cease collection activities until it provides verification of the debt. 
XXXX Opinions : Consumer Financial Protection Bureau. Supervisory Highlights Servicing and Collection of Consumer Debt, Issue XXXX, Summer XXXX : If a validation disclosure is not delivered to the consumer, the collection activity is not conducted in a manner reasonably expected to provide actual notice, invalidating the collection activity and reporting under the FDCPA. 
XXXX XXXX : XXXX v. XXXX XXXX. XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) : A CRAs reliance on information gathered by outside entities is reasonable only if the information is not obtained from a source that was known to be unreliable and is not inaccurate on its face or otherwise inconsistent with the information the CRAs already had on file. 
XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Materially misleading information can be just as damaging to a consumer when it comes from a CRA as opposed to when it comes from a furnisher. 
Relevance : XXXX failed to provide proper notice of the alleged debt to XXXX, as evidenced by the absence of any received communication or notice despite residing at the same address. The failure to provide proper notice by XXXX is a violation of XXXX XXXX. XXXX ( a ). 
Under XXXX XXXX. XXXX ( b ), if a consumer disputes a debt in writing within the XXXX period, the debt collector must cease all collection activities until verification is provided. XXXX acknowledged receipt of the direct dispute on XX/XX/XXXX, as documented in CFPB complaint XXXX, but continued collection activity is evident as the account remains on the credit report without proper verification and validation between the purported original creditor and XXXX. This is a direct violation of XXXX XXXX. XXXX ( b ). 
Although Experian purports XXXX has verified the accuracy of the information reported for the account/tradeline, it is not possible for the account to be under collection because XXXX has not finished its verification and validation of the alleged debt with the purported original creditor. Therefore, the presence of the account/tradeline in the files Experian maintains and disseminates regarding XXXX is materially misleading information. In XXXX v. XXXX XXXX XXXX XXXX XXXX court emphasized that information in a consumer report must be both accurate and not materially misleading. Additionally, the court emphasized that inaccurate information is just as damaging when it comes from a CRA as when it comes from a data furnisher. 

Conclusion : Because any collection activity without verification and validation of the debt is considered an invalidation of the collection activity and reporting under the FDCPA, it is considered inaccurate and materially misleading information under the FCRA. XXXX XXXX. XXXX ( b ) the collection account/tradeline and associated information must be removed immediately from any and all files Experian maintains and disseminates regarding XXXX. 

XXXX XXXX, XXXX, and XXXX XXXX. XXXX Under the Americans with XXXX XXXX ( XXXX ) XXXX  and XXXX are recognized XXXX under the XXXX. The XXXX prohibits discrimination based on XXXX and requires reasonable accommodations for individuals with XXXX. 
Guidance : Joint XXXX and DOJ Guidance : Long-COVID can qualify as a XXXX under the XXXX if XXXX substantially limits XXXX or more major life XXXX. 
Relevance : Complainant has been diagnosed with ADHD and has experienced multiple periods of XXXX, which have severely impacted their health, cognitive functioning, and ability to manage financial matters. This includes prolonged post-exertional XXXX ( PEM ) and XXXX XXXX, leading to heightened XXXX  and difficulty in managing disputes with CRAs and debt XXXX. 
B. XXXX XXXX and Health Impact The procedural deficiencies and delays by Experian and XXXX have exacerbated Complainants health conditions, contributing to severe XXXX XXXX anxiety, and financial instability. 
XXXX XXXX : XXXX. XXXX v. Experian XXXX. Solutions, XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX. Mich. XXXX ) : XXXX XXXX suffered by plaintiff asserting a claim under the FCRA is a sufficiently concrete injury to support XXXX XXXX standing. 
XXXX. XXXX v. XXXX XXXX XXXX XXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : The FCRA permits recovery foXXXX XXXX XXXX XXXX XXXX  as well as for injury to ones reputation and creditworthiness. 
XXXX. XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX. XXXX XXXX ( XXXX. XXXX XXXX ) : XXXX XXXX constitutes an injury in fact under the FCRA, even post-Spokeo. 
XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX, XXXX XXXX XXXX ( XXXX Cir. XXXX ) : The differences in the language of XXXX and XXXX do not compel a rule allowing CRAs off the hook for omitting material facts. 
XXXXXXXX XXXX XXXX. XXXX XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ) : Materially misleading information can be just as damaging to a consumer when it comes from a CRA as opposed to when it comes from a furnisher. 
Relevance : Complainant has experienced significant emotional distress due to the ongoing disputes, which have worsened their health conditions, leading to increased anxiety and chronic stress. The failure to correct inaccuracies in credit reporting has also led to financial instability, including difficulty securing housing, which further exacerbates XXXX XXXX XXXX XXXX 
VI. PREPONDERANCE OF EVIDENCE The evidence clearly demonstrates that XXXX and Experian have engaged in practices that violate both the Fair Debt Collection Practices Act ( FDCPA ) and the Fair Credit Reporting Act ( FCRA ). Despite multiple disputes and clear evidence provided by Complainant, both entities have failed to comply with their legal obligations. XXXX 's failure to provide the required validation notice in a manner reasonably expected to provide actual notice invalidates their collection activities. 
Invalid Collection Activity : XXXX 's failure to deliver the validation disclosure as required under Regulation F means the collection activity was not conducted in a manner reasonably expected to provide actual notice, thus invalidating the collection activity and reporting under the FDCPA. Therefore, the collection account can not be persisted in credit files Experian maintains and disseminates regarding XXXX. 
Misleading and Incomplete Reporting : XXXX reliance on TSIs unverifiable and inaccurate information has led to the continued reporting of misleading and incomplete data. Specifically, the conflicting Dates of First Delinquency ( DoFD ) reported by Experian and XXXX, which were allegedly verified by XXXX as accurate, highlight a failure to ensure maximum possible accuracy as mandated by XXXX XXXX. XXXX ( b ). This inconsistency, coupled with the acknowledgment from XXXX that it had not completed its investigation, underscores XXXX failure to conduct reasonable reinvestigations as required under XXXX XXXX. XXXX ( a ) ( XXXX ) ( A ). Consequently, this misleading and incomplete reporting has resulted in significant harm to Complainants creditworthiness and financial stability. 
Given these violations, the tradeline must be removed from Complainants credit report immediately to ensure compliance with both the FDCPA and FCRA. 

XXXX. CONCLUSION In light of the evidence presented, it is clear that Experian has engaged in a pattern of willful noncompliance with the Fair Credit Reporting Act ( FCRA ) and the Fair Debt Collection Practices Act ( FDCPA ). Despite receiving multiple dispute notifications and clear evidence of inaccuracies, Experian has repeatedly failed to conduct proper ( re ) investigations, relying instead on automated processes that do not meet the standards set forth under XXXX XXXX. XXXX and XXXX XXXX. XXXX ( b ). Furthermore, Experian has failed to correct or delete information it could neither verify nor correct for the XXXX XXXX ( XXXX ) account/tradeline, in violation of XXXX XXXX. XXXX ( a ) ( XXXX ). 
The violations committed by Experian and XXXX have caused significant harm to Complainants creditworthiness, financial stability, and overall health. The increased frustration, stress, and anxiety resulting from Experian 's and TSIs actions have exacerbated XXXX 's underlying health conditions, including Long-COVID and ADHD. These actions have led to severe emotional distress, anxiety, and housing insecurity, further impairing everyday functioning. 
Complainant remains exceptionally vulnerable to the conduct of XXXX and Experian.