Consumer complaint received 2024-04-20
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: EQUIFAX, INC. (CA)

In response to XXXX CFPB COMPLAINT ID XXXX. This a XXXX XXXX XXXX XXXX XXXX XXXX is willfully or negligently violating XXXX XXXX. XXXX ( b ) of the Fair Credit Reporting Act ( " FCRA '' ). XXXX XXXX XXXX XXXX canceled XXXX XXXX XXXX XXXX 's DEBT, and thus, XXXX XXXX XXXX XXXX continued reporting outstanding debt to the XXXX is inaccurate. XXXX XXXX XXXX XXXX further alleges that XXXX XXXX XXXX XXXX failed to investigate. 
dispute in failing to review underlying account information. XXXX XXXX continue and erroneous reporting of an outstanding balance on XXXX XXXX XXXX XXXX account harming XXXX XXXX XXXX XXXX credit history and creditworthiness. 

XXXX XXXX XXXX XXXX asserts several facts to support that the debt was in fact canceled. The XXXX form XXXX XXXX XXXX XXXX XXXX Secured Party Creditor issued to XXXX XXXX XXXX XXXX XXXX XXXX Cancellation of Debt. '' The identifiable event and TRUSTEE of XXXX XXXX XXXX XXXX selected indicated it was the decision or policy of the creditor to discontinue and cancel the debt. After issuing the XXXX, to XXXX XXXX XXXX XXXX XXXX XXXX efforts to collect the debt and stopped sending periodic account notices, because XXXX XXXX XXXX XXXX XXXX XXXX furnished information was accurate, thus precluding a violation under XXXX U.S.C. XXXX ( b ). ( Doc. XXXX, p. XXXX. ) Factual content that allows XXXX XXXX XXXX XXXX to draw the reasonable inference that XXXX XXXX XXXX XXXX is liable for the misconduct alleged. '' XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX ) ( citing XXXX XXXX XXXX v. XXXX, XXXX XXXX XXXX ( XXXX ) ). accept as true all well-pled factual allegations in this complaint and all reasonable inferences that can be drawn from them. ' '' Estate of XXXX by XXXX XXXX XXXX XXXX XXXX, XXXX XXXX -- - XXXX XXXX -- --, XXXX XXXX XXXX, at XXXX ( XXXX XXXX. XXXX XXXX, XXXX ) ( quoting XXXX v. XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) ). The facts alleged must be " construed in the light most favorable to XXXX XXXX XXXX ESTATE Secured Party Creditor. '' In re XXXX. XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) ( internal quotations, brackets, and ellipses omitted ). But " [ t ] he court is not required to draw unreasonable inferences '' from the facts. XXXX XXXX XXXX XXXX & XXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX ( XXXX XXXX. XXXX ). 

.Bistrian XXXX XXXX XXXX XXXX XXXX XXXX ( XXXX Cir. XXXX ). First, the court outlines the elements a plaintiff must plead to state a claim for relief. Id. at XXXX. Second, the court must " peel away those allegations that are no more than conclusions and thus not entitled to the assumption of truth. '' Id. Third, the court " look [ XXXX ] for well-pled factual allegations, assume [ XXXX ] their veracity, and then 'determine [ XXXX ] whether they plausibly give rise to an entitlement to relief. ' '' Id. ( quoting XXXX, XXXX XXXX at XXXX ). The last step is " a context-specific task that requires the reviewing court to draw on its judicial experience and common sense. '' XXXX enacted the FCRA in XXXX to ensure fair and accurate credit reporting, promote efficiency in the banking system, and protect consumer privacy. In doing so, XXXX sought to preserve the consumer 's privacy in the information maintained by consumer reporting agencies. '' XXXX v. State Farm Mut. Auto. Ins. XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) ( internal quotation marks omitted ). Once notified of a dispute, a furnisher of credit information has statutory duties, inter alia, to investigate the disputed information and to correct information found to be inaccurate. XXXX XXXX. XXXX ( b ) ( XXXX ). To establish a violation [ u ] nder the statutory framework and clear language of the statute, therefore, a consumer must first alert the XXXX XXXX XXXX that reported the allegedly erroneous information of a dispute. It is then up to the reporting agency to inform the furnisher of information that there has been a dispute, thereby triggering the furnisher 's duty to investigate. It is only when the furnisher fails to undertake a reasonable investigation following such notice that it XXXX become liable to a private litigant under XXXX ( b ) .SimmsParris v. XXXX XXXX. XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ). 

Reasonableness of the investigation is determined based on a balancing of " the potential harm from inaccuracy against the burden of safeguarding against such inaccuracy. '' XXXX v. XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX Cir. XXXX ) ( internal citation omitted ). Regarding the requirement of " accurate '' information, " even if the information is technically correct, it XXXX nonetheless be inaccurate if, through omission, it creates a materially misleading impression. '' Id. ( internal quotation marks and brackets omitted ). XXXX XXXX XXXX ESTATE Secured Party Credit plausibly allege " ( XXXX ) that he notified a credit reporting agency of the dispute under XXXX, ( XXXX ) that the credit reporting agency notified the party who furnished the information under XXXX ( a ) ( XXXX ), and ( XXXX ) that the party who furnished the information failed to investigate or rectify the disputed charge .... '' XXXX XXXX XXXX XXXX Bank, XXXX, XXXX XXXX XXXX. XXXX XXXX, XXXX ( XXXX. XXXX XXXX ) ( internal citation and brackets omitted ). 

XXXX XXXX XXXX XXXX replied that XXXX XXXX XXXX XXXX failed to plead any of the required elements in dispute filed XX/XX/XXXX CFPB COMPLAINT ID XXXX. Rather, XXXX XXXX XXXX XXXX argues that XXXX XXXX XXXX Complaint ID XXXX submitted on XX/XX/XXXX can not succeed unless the information was in fact inaccurate or materially misleading. See XXXX XXXX XXXX XXXX XXXX XXXX XXXX, XXXX XXXX XXXX, XXXX ( XXXX XXXX. XXXX ) ( holding that a plaintiff must show " actual inaccuracy '' to establish a claim against a furnisher of credit information under XXXX XXXX. XXXX ( b ) ). XXXX XXXX XXXX XXXX claims its report was accurate and that it did not receive XXXX of debt and Discharge from XXXX XXXX XXXX XXXX XXXX Party Credit. XXXX XXXX XXXX XXXX cancel debt by issuing the XXXX to XXXX XXXX XXXX XXXX XXXX XXXX issuance of the XXXX does not, as a matter of law, discharge the underlying debt. ( Doc. XXXX, p. XXXX. ) IRS regulation states that a creditor XXXX be obligated to file a XXXX even if the creditor did not in fact discharge the debt. On the form, the creditor must select an " identifiable event, '' the date of which becomes the effective date for the discharge of indebtedness for purposes of the informational report. XXXX XXXX. XXXX ( b ). The XXXX XXXXsued guidance to clarify that the XXXX  " does not view the XXXX as an admission by the creditor that it has XXXX the debt and can no longer pursue collection. '' XXXX. XXXX. XXXX, XXXX ( XXXX XXXX, XXXX ) XXXX Internal Revenue Service XXXX IRS XXXX requires XXXX any applicable entity... that discharges an indebtedness of any person... must file an information return on Form XXXX with the Internal Revenue Service XXXX Solely for purposes of the reporting requirements of [ this section ], a discharge of indebtedness is deemed to have occurred... if and only if there has occurred an identifiable event described in paragraph ( b ) ( XXXX ) of this section, whether or not an actual discharge of indebtedness has occurred on or before the date on which the identifiable event has XXXX XXXX. XXXX ( a ) ( emphasis added ). 

The XXXX XXXX XXXX Kentucky in XXXX XXXX XXXX Banking XXXX XXXX XXXX arrived at a similar conclusion in denying a motion to dismiss raised by creditor bank where plaintiff consumers brought a XXXX ( b ) claim. No. XXXX, XXXX XXXX XXXX, XXXX ( XXXX. XXXX XXXX XXXX, XXXX ). The XXXX parties argued whether the XXXX canceled the debt, but the court found it unnecessary to adopt either opposing view of the form 's effect, since at the motion to dismiss stage, the court analyzes the plausibility of the pleadings rather than the weight of the evidence. Id. at XXXX. Even though the issuance of the XXXX standing alone does not prove that the debt was XXXX as a matter of law, the debt in fact may have been discharged. 

XXXX XXXX XXXX XXXX Account Number # XXXX XXXX  Balance {$23000.00} XXXX XXXX XXXX XXXX Account Number # XXXX XXXX Balance {$25000.00} See attached document for 1099c