Consumer complaint received 2024-10-03
Product: Credit card — Store credit card
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: CHERRY TECHNOLOGIES INC. (CA)

XX/XX/year> Consumer Financial Protection Bureau XXXX XXXX XXXX XXXXXXXX XXXX XXXXXXXX Subject : Formal Complaint Regarding Cherry Technologies ' Violation of the Fair Credit Reporting Act ( FCRA ) Dear CFPB, I am writing to file a formal complaint against Cherry Technologies Inc. regarding their improper handling of my credit application and their failure to address a significant discrepancy in my Clarity credit score, which I believe constitutes a violation of the Fair Credit Reporting Act ( FCRA ), XXXX U.S.C. XXXX et seq. 

Background : On XX/XX/year>, I received an adverse action letter from Cherry Technologies informing me that my credit application was denied due to a low Clarity credit score of XXXX. However, within XXXX minutes of receiving this denial, I requested and received my credit score directly from XXXX XXXX, which reflects a score of XXXXa significant difference from the XXXX reported by Cherry. 

In response, I contacted Cherry Technologies to dispute this apparent error and provided documentation of my Clarity credit score. Despite this, Cherry 's response was dismissive and automated, failing to directly address the issue and suggesting that I check my adverse action letter again, which I had already referenced. This type of response is in violation of several provisions of the FCRA.

FCRA Violations : 1. Failure to Ensure Accuracy in Credit Decisions ( FCRA 1681e ( b ) ) Cherry Technologies failed to ensure that the information they used to evaluate my credit application was accurate. The significant discrepancy between my reported Clarity score of XXXX and Cherry 's use of a score of XXXX is a clear violation of their duty to ensure the accuracy of information in credit decisions. 

2. Failure to Conduct a Proper Investigation ( FCRA 1681i ) * After disputing the information, Cherry Technologies failed to conduct a reasonable investigation into the accuracy of the credit information provided. Their response was a generic, automated message, and they failed to address the specific discrepancy between my Clarity credit report and the information they used.

3. Adverse Action Based on Inaccurate Information ( FCRA 1681m ) Cherry Technologies improperly denied me credit based on inaccurate information from XXXX XXXX. Under the FCRA, I have the right to a credit decision based on accurate and complete credit information, and Cherry failed to fulfill this obligation.

Penalties : Under the FCRA, Cherry Technologies could be subject to penalties for willful noncompliance ( FCRA 1681n ), which may include actual damages, punitive damages, and attorney 's fees. For negligent noncompliance ( FCRA 1681o ), they may be liable for actual damages and attorney 's fees. Each violation may carry statutory penalties of up to {$1000.00}, and the CFPB has the authority to impose additional civil penalties.

Requested Action : I am requesting that the CFPB investigate Cherry Technologies for their failure to ensure the accuracy of credit information and their inadequate handling of my dispute. Additionally, I request that Cherry be compelled to reconsider my application using the correct Clarity credit score of XXXX and ensure that similar issues do not occur with other consumers. 

I have attached copies of the adverse action letter from Cherry Technologies, my Clarity credit report, and my communications with Cherry to support this complaint.

Thank you for your attention to this matter. I look forward to your prompt investigation and response.