Consumer complaint received 2024-01-08
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: CAPITAL ONE FINANCIAL CORPORATION (NJ)

This letter serves as a formal demand for the Consumer Financial Protection Bureau ( CFPB ) to take immediate enforcement action against CAPITAL ONE BANK ( USA ) , NATIONAL ASSOCIATION ( " Capital One '' ) for violating the Fair Credit Reporting Act ( FCRA ) and the Privacy Act of XXXX. Despite my original opt-out notice dated XX/XX/XXXX, Capital One continues to report inaccurate and harmful information to consumer reporting agencies, causing significant damage to my financial and personal well-being. 
Summary of the Violation : 1. Failure to Honor Opt-Out Request : I initially exercised my right to opt out of Capital One 's data sharing practices through my XX/XX/XXXX, complaint, Complaint Number XXXX. Despite acknowledging the complaint, Capital One has not ceased reporting inaccurate information to consumer reporting agencies. This constitutes a clear violation of Section 15 U.S.C. 6802 ( b ) of the FCRA, which explicitly states : ( b ) Opt Out ( 1 ) In general A financial institution may not disclose nonpublic personal information to a nonaffiliated third party unless ( A ) such financial institution clearly and conspicuously discloses to the consumer, in writing or in electronic form or other form permitted by the regulations prescribed under section 6804 of this title, that such information may be disclosed to such third party ; ( B ) the consumer is given the opportunity, before the time that such information is initially disclosed, to direct that such information not be disclosed to such third party ; and ( C ) the consumer is given an explanation of how the consumer can exercise that nondisclosure option. 
Capital One has failed to meet these requirements, as they have not honored my timely opt-out request and continue to disclose my nonpublic personal information without my consent. 
2. Unreasonable Opt-Out Mechanism : Capital One 's reliance on the initial complaint as the sole opt-out mechanism is unreasonable and does not comply with the FCRA 's requirement for a " clear and conspicuous '' method. This practice effectively denies consumers their right to easily opt out, further violating Section 15 U.S.C. 6802 ( b ) of the FCRA. Additionally, it contravenes Regulation P, which outlines specific requirements for financial institutions regarding opt-out notices and mechanisms : PART 1016 - PRIVACY OF CONSUMER FINANCIAL INFORMATION ( REGULATION P ) 12 CFR 1016.7 Form of opt out notice to consumers ; opt out methods ( a ) ( 1 ) Form of opt out notice. If you are required to provide an opt out notice under 1016.10 ( a ), you must provide a clear and conspicuous notice to each of your consumers that accurately explains the right to opt out under that section. The notice must state : 1. That you disclose or reserve the right to disclose nonpublic personal information about your consumer to a nonaffiliated third party ; 2. That the consumer has the right to opt out of that disclosure ; and 3. A reasonable means by which the consumer may exercise the opt out right. 
( a ) ( 2 ) ( ii ) Reasonable opt out means. You provide a reasonable means to exercise an opt out right if you : 4. Designate check-off boxes in a prominent position on the relevant forms with the opt out notice ; 5. Include a reply form together with the opt out notice that, in the case of financial institutions described in 1016.3 ( l ) ( 3 ) of this part, includes the address to which the form should be mailed ; 6. Provide an electronic means to opt out, such as a form that can be sent via electronic mail or a process at your Web site, if the consumer agrees to the electronic delivery of information ; or 7. Provide a toll-free telephone number that consumers may call to opt out.

( a ) ( 2 ) ( iii ) Unreasonable opt out means. You do not provide a reasonable means of opting out if : 8. The only means of opting out is for the consumer to write his or her own letter to exercise that opt out right ; or 9. The only means of opting out as described in any notice subsequent to the initial notice is to use a check-off box that you provided with the initial notice but did not include with the subsequent notice. 
( g ) Time to comply with opt out. You must comply with a consumer 's opt out direction as soon as reasonably practicable after you receive it.

( h ) Continuing right to opt out. A consumer may exercise the right to opt out at any time. 
( i ) ( 1 ) Duration of consumer 's opt out direction. A consumer 's direction to opt out under this section is effective until the consumer revokes it in writing or, if the consumer agrees, electronically. 
Capital One 's failure to provide Capital One 's failure to provide a clear and readily available opt-out mechanism beyond the initial complaint, coupled with their non-compliance with Regulation P 's specific requirements for opt-out notices and methods, constitutes another clear violation of their obligations towards consumer privacy and data protection. Their reliance on a single complaint as the sole opt-out option is not only inconvenient but also effectively disenfranchises consumers from easily exercising their right to control their non-public personal information. This practice runs counter to the spirit and letter of both the FCRA and Regulation P, leaving consumers vulnerable to continued data sharing without their informed consent. 

3. Violation of Privacy Act of XXXX : Capital One 's continued reporting of inaccurate information without your prior written consent also violates the Privacy Act of XXXX, specifically Section 5 U.S.C. 552a ( b ). This section prohibits agencies from disclosing any record contained in a system of records without the individual 's written authorization, except under specific exceptions that do not apply in this case. 
o Section 5 U.S.C. 552a ( a ) ( 4 ) : Defines " record '' as any collection of information about an individual, including financial transactions, maintained by an agency. Consumer reports clearly fall under this definition.

o Section 5 U.S.C. 552a ( b ) : Prohibits agency disclosure of any record without the individual 's written consent, except in specific circumstances not applicable here. 
4. Continued Reporting of Inaccurate Information : Capital One 's continued reporting of inaccurate information further amplifies the harms caused by their data sharing practices. This raises concerns about potential data quality issues and a lack of proper verification procedures within their systems. 

Supporting Evidence : Attached to this letter is the following evidence supporting my claims : My original opt-out notice dated XX/XX/XXXX, Complaint Number XXXX. 
Any subsequent communication with Capital One regarding my opt-out request. 
Copies of my credit reports showing the presence of inaccurate information reported by Capital One. 
Request for Action : I urge the CFPB to take immediate enforcement action against Capital One for the violations outlined above. Specifically, I request that the CFPB as per 15 usc 6805 : Investigate Capital One 's data sharing practices and hold them accountable for their non-compliance with the FCRA and the Privacy Act of XXXX. 
Order Capital One to remove all inaccurate information from my consumer reports.

Implement appropriate penalties against Capital One to deter future violations and protect other consumers from similar harm. 
15 U.S. Code 6805 - Enforcement ( a ) In general Subject to subtitle B of the Consumer Financial Protection Act of 2010 [ 12 U.S.C. 5511 et seq. ], this subchapter and the regulations prescribed thereunder shall be enforced by the Bureau of Consumer Financial Protection, the Federal functional regulators, the State insurance authorities, and the Federal Trade Commission with respect to financial institutions and other persons subject to their jurisdiction under applicable law, Thank you for your time and attention to this urgent matter. I look forward to your prompt response and action against Capital One.