Consumer complaint received 2024-05-16
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: EdFinancial Services (AZ)

**Complaint to the Consumer Financial Protection Bureau XXXX CFPB ) ** **Subject : ** Failure to Ensure Maximum Possible Accuracy in Consumer Credit Reports **Complaint Against : ** XXXX, XXXX XXXX XXXX XXXX : XXXX **Details of Complaint : ** XXXX*1. Summary of the Issue : ** Under 15 U.S. Code 1681, credit reporting companies and furnishers are required to follow " reasonable procedures to assure maximum possible accuracy '' in the information they report. This obligation is crucial for protecting consumers from inaccurate credit information that can have severe implications on their financial lives. Despite this clear mandate, credit reporting companies and furnishers are attempting to bypass their responsibilities by arguing that their duties do not extend to inaccuracies they characterize as " legal '' rather than " factual. '' XXXX. Specific Incidents : ** XXXX XXXX XXXX XXXX XXXX XXXX XXXX : ** In this case, XXXX XXXX nearly {$20000.00} owed by a consumer on a car lease, which was factually incorrect under the terms of the lease. XXXX defended its inaction by claiming the inaccuracy was " legal '' rather than " factual, '' and that the information provided by the leasing company absolved them of responsibility. This misinterpretation of the Fair Credit Reporting Act ( FCRA ) undermines consumer protections intended by XXXX. 

**b. Milgram XXXX XXXX XXXX XXXX ** Here, a consumer, a victim of identity theft, disputed an account related to a fraudulently opened XXXX credit card. Despite a state court 's recommendation to cease reporting the account, XXXX continued to furnish the disputed information. XXXX argued that their duty to investigate the dispute was not applicable due to the " legal '' nature of the underlying issue, which contravenes the FCRA 's requirement for thorough and reasonable investigation of disputed information.

**3. Legal Framework : ** The FCRA does not differentiate between " legal '' and " factual '' inaccuracies. It unequivocally requires that credit reporting companies and furnishers adopt reasonable procedures to ensure the highest level of accuracy in credit reporting. This includes diligently investigating and correcting any disputed information, irrespective of the nature of the inaccuracy.

**4. Impact on Consumers : ** These practices create a significant loophole, enabling credit reporting companies and furnishers to evad accountability for inaccurate reporting. This misapplication of the FCRA 's provisions jeopardizes consumers ' financial stability and violates their rights to accurate credit reporting as intended by Congress.

**5. Request for Action : ** I urge the CFPB to take immediate action to enforce compliance with the FCRA 's accuracy requirements. This includes : - Investigating the practices of XXXX, XXXX, and XXXX. 
- Ensuring they adopt and follow reasonable procedures to assure maximum possible accuracy in their reporting. 
- Requiring them to thoroughly investigate and correct any disputed information without differentiating between " legal '' and " factual '' inaccuraci. 
- Imposing appropriate penalties and corrective measures to prevent recurrence of such violatios. 

6. Conclusion The integrity of credit reporting is paramount for the financial well-being of consumers. It is imperative that credit reporting companies and furnishers adhere to the FCRA 's requirements without exploiting ambiguous legal arguments to shirk their responsibilities. I trust the CFPB will act decisively to uphold the law and protect consumers ' rights. 

Thank you for your attention to this matter. 

**Sincerely, ** XXXX XXXX XXXX XXXX XXXX