Consumer complaint received 2024-04-09
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Improper use of your report — Reporting company used your report improperly
Company: EQUIFAX, INC. (TX)

I am writing to bring to your attention a matter of concern regarding a potential violation of the Fair Credit Reporting Act ( FCRA ) by Equifax. The FCRA, as outlined in the 15 U.S. Code 1681b, 1681s2, and 1681c, imposes strict requirements on consumer reporting agencies to ensure the accuracy, fairness, and privacy of consumer information. 

Specifically, I believe that the closed account : XXXX XXXX XXXX. 

XXXX reported on my credit report is a violation as mentioned aboved. This consumer law, 15 U.S. Code 1681b, outlines the permissible purposes for which consumer reports can be furnished by consumer reporting agencies. These purposes include : Court orders, subpoenas related to federal grand jury proceedings, or subpoenas issued under specific federal laws. 

With the written consent of the consumer. 

For purposes such as credit transactions, employment background checks, insurance underwriting, eligibility determinations for licenses or benefits, assessing credit risks, or legitimate business needs. 

Responding to requests from state or local child support enforcement agencies, provided certain conditions regarding confidentiality and purpose are met. 

Providing information to agencies administering state child support plans. 

Furnishing reports to federal agencies like the XXXX XXXX XXXX XXXX or the XXXX XXXX XXXX XXXX in relation to their regulatory or resolution duties concerning financial institutions. 

These purposes ensure that consumer reports are used lawfully and responsibly, safeguarding consumer privacy and rights. 

This consumer law, 15 U.S. Code 1681s2, outlines the responsibilities of entities that provide information to consumer reporting agencies. It emphasizes the duty of these entities, known as furnishers, to ensure the accuracy of the information they report : Furnishers are prohibited from providing information to consumer reporting agencies if they know or have reasonable cause to believe that the information is inaccurate. 

In essence, this law holds furnishers accountable for the accuracy of the information they submit to consumer reporting agencies, aiming to maintain the integrity of credit reports and protect consumers from inaccurate or misleading information. 

15 U.S. Code 1681c outlines requirements related to the information that can be included in consumer reports. Here are some key points from the law : Accurate and Complete Information : Consumer reporting agencies must ensure that the information they include in consumer reports is accurate and complete. 

Obsolescence of Information : Negative information, such as late payments or bankruptcies, can generally be reported for up to seven years. However, there are exceptions for certain types of information, such as bankruptcy information ( which can be reported for up to ten years ). 

Medical Information : Generally, medical information can not be included in consumer reports unless the consumer provides consent or it is for certain permissible purposes, such as underwriting insurance or processing a credit transaction. 

Identity of Sources : Consumer reports must clearly identify the sources of the information contained within them. 

Notice to Consumers : Consumer reporting agencies must provide notice to consumers when adverse actions are taken based on information in their consumer reports. Adverse actions may include denying credit or employment based on the report. 

These requirements are designed to ensure that consumer reports are fair, accurate, and provide consumers with a clear understanding of the information being used to evaluate them for various purposes such as credit or employment. 

Consumer reports can not include certain types of information unless authorized under subsection ( b ) : Bankruptcy cases over 10 years old.

Civil suits, judgments, and arrests over 7 years old or until the statute of limitations expires.

Paid tax liens over 7 years old.

Accounts sent for collection or charged off over 7 years ago.

Other negative information over 7 years old, except for criminal convictions.

Medical information furnishers ' details, unless restricted or for certain insurance purposes.

Veteran 's medical debt information less than 1 year old, unless the agency complies with specific laws.

Fully paid or settled veteran 's medical debt marked as delinquent, charged off, or in collection, unless the agency complies with specific laws.

This law mandates that consumer reporting agencies must have reasonable procedures to prevent violations of section 1681c and to restrict the distribution of consumer reports for purposes outlined in section 1681b. These procedures include : Requiring prospective users to identify themselves, state the purpose for which they need the information, and confirm that they won't use the information for other purposes.

Making efforts to verify the identity of new users and the stated purposes before providing them with a consumer report.

Not providing consumer reports to anyone if there are reasonable grounds to believe that the report will be used for purposes not allowed under section 1681b.

Violating section 1681c can result in severe consequences, including fines and penalties imposed by the Consumer Financial Protection Bureau ( CFPB ). Additionally, consumer reporting agencies can face lawsuits from individuals who have been harmed by the violation, leading to costly litigation and potential damages. Furthermore, the violator can suffer damage to their reputation, leading to loss of credibility and trust from consumers.