Consumer complaint received 2024-04-02
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. (CA)

THIS IS IN REGARDS TO MY XXXX XXXX Department of Child Support CASE # XXXX XXXX XXXX Department of Child Support XXXX XXXX and Equifax are in direct violation of FCRA laws by unlawfully reporting transaction history on my consumer reports. 

Per the FCRA and as a federally protected consumer, I am now opting out of ANY and ALL authorization I the consumer may have given XXXX XXXX Department of Child Support, be that written, unwritten, verbal and nonverbal. I am also opting out of any and all authorization to give my information to a third party pursuant to 15 U.S. Code 6802. This is effective immediately and indefinitely. 
XXXX XXXX Department of Child Support is in direct violation of section 5 U.S.C. 552a ( b ) of The Privacy Act of XXXX which states as follows : No agency shall disclose any record which is contained in a system of records by any means of communication to any person, or to another agency, except pursuant to a written request by, or with the prior written consent of, the individual to whom the record pertains. 

XXXX XXXX Department of Child Support is in direct violation of 15 U.S. Code 6802 ( b ) and 15 U.S. Code 1681e because they shared private information without my knowledge or consent. They are also in clear and direct violation of 12CFR1016.4 ( a ) because they gave me absolutely no notice or option to opt out at any time. They are also in violation of section 5 U.S.C. 552a ( b ) of The Privacy Act of XXXX. 

I have the right to ensure that my private information is NOT SHARED! 
Congress states in subsection ( 3 ) of 15 U.S. Code 6801 that these institutions must : protect against unauthorized access to or use of such records or information which could result in substantial harm or inconvenience to any customer. 

XXXX XXXX Department of Child Support is in absolute violation of this law as well because they have caused me extreme harm and many inconveniences in life by unlawfully sharing derogatory information in my name with third parties without my consent! 

REPORTING TRANSACTION HISTORY IS ILLEGAL! 
15 U.S. Code 1681a subchapter ( 2 ) ( A ) ( i ) clearly states the following : ( 2 ) EXCLUSIONS.Except as provided in paragraph ( 3 ), the term consumer report does not include ( A ) subject to section 1681s3 of this title, any ( i ) report containing information solely as to transactions or experiences between the consumer and the person making the report ; ( ii ) communication of that information among persons related by common ownership or affiliated by corporate control ; or ( iii ) communication of other information among persons related by common ownership or affiliated by corporate control, if it is clearly and conspicuously disclosed to the consumer that the information may be communicated among such persons and the consumer is given the opportunity, before the time that the information is initially communicated, to direct that such information not be communicated among such persons ; So I demand that XXXX XXXX Department of Child Support removes all negative reporting transaction history and marks my account PAID AS AGREED. 

As CLEARLY written on the CFPB website, 12CFR1016.4 ( a ) states that there is an : Initial notice requirement. You must provide a clear and conspicuous notice that accurately reflects your privacy policies and practices to : ( 1 ) Customer. An individual who becomes your customer, not later than when you establish a customer relationship, except as provided in paragraph ( e ) of this section; and ( 2 ) Consumer. A consumer, before you disclose any nonpublic personal information about the consumer to any nonaffiliated third party, if you make such a disclosure other than as authorized by 1016.14 and 1016.15 of this part.

This is a clear violation against myself, the consumer because XXXX XXXX Department of Child Support failed to provide me with ANY notice reflecting their policies OR giving me the opportunity to opt out prior to sharing and disclosing my personal and private information with third parties. 

The CFPB website also clearly states in section 12CFR1016.7 ( a ) ( 1 ) ( i ) That you disclose or reserve the right to disclose nonpublic personal information about your consumer to a nonaffiliated third party ; ( ii ) That the consumer has the right to opt out of that disclosure ; and ( iii ) A reasonable means by which the consumer may exercise the opt out right. 

XXXX XXXX Department of Child Support has at no time ever disclosed to me, the consumer, that they were disclosing my personal information to nonaffiliated third parties, so this is yet another violation. 
XXXX XXXX Department of Child Support is in direct violation of 16 CFR Part 313 PART 313PRIVACY OF CONSUMER FINANCIAL INFORMATION 16 CFR 313.7 ( a ) ( ii ) states that the consumer has the right to opt out of that disclosure.

16 CFR 313.7 also states in the following subsections : ( e ) 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.

( f ) Continuing right to opt out. A consumer may exercise the right to opt out at any time.

( g ) Duration of consumer 's opt out direction.

( 1 ) 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.

( 2 ) When a customer relationship terminates, the customer 's opt out direction continues to apply to the nonpublic personal information that you collected during or related to that relationship. If the individual subsequently establishes a new customer relationship with you, the opt out direction that applied to the former relationship does not apply to the new relationship.

16 CFR 313.8 ( a ) states : Except as otherwise authorized in this part, you must not, directly or through any affiliate, disclose any nonpublic personal information about a consumer to a nonaffiliated third party other than as described in the initial notice that you provided to that consumer under 313.4, unless : ( 1 ) You have provided to the consumer a clear and conspicuous revised notice that accurately describes your policies and practices ; ( 2 ) You have provided to the consumer a new opt out notice ; ( 3 ) You have given the consumer a reasonable opportunity, before you disclose the information to the nonaffiliated third party, to opt out of the disclosure; and ( 4 ) the consumer does not opt out. 

XXXX XXXX Department of Child Support is in direct violation of 16 CFR 313.9 ( a ) which clearly states : You must provide any privacy notices and opt out notices, including short-form initial notices, that this part requires so that each consumer can reasonably be expected to receive actual notice in writing or, if the consumer agrees, electronically.

16 CFR 313.10 ( b ) ( 1 ) states that : you must comply with this section, regardless of whether you and the consumer have established a customer relationship ( 2 ) Unless you comply with this section, you may not, directly or through any affiliate, disclose any nonpublic personal information about a consumer that you have collected, regardless of whether you collected it before or after receiving the direction to opt out from the consumer.

15 U.S. Code 1681c clearly outlines the requirements relating to information contained in consumer reports. 1681c ( a ) states this : Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information : Subsection ( 5 ) states that : Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years. 
Yet another violation, because XXXX XXXX Department of Child Support is reporting adverse items, and it is being reported without my permission.

In addition, pursuant to the FCRA 2003 amendments ( FACT Act ), Credit Reports for collection of delinquent child support, judgments, fines and liens may no longer be permitted. Federal courts recently have issued rulings about the use of consumer reports for the collection of an account under the Fair Credit Reporting Act ( FCRA ) XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX 

The cases listed above note that certain definitions were added to the FCRA as part of the XXXX amendments ( FACT Act ). In particular, the word credit was defined. As a result of the new definition the position that is being advocated is that a collection of an account is a permissible purpose to obtain a consumer report only when the collection is in connection with a credit transaction. The courts have specifically rejected prior case law and FTC guidance that a judgment creditor had permissible purpose, noting that those decisions pre-dated the FACT Act. These cases have held that a delinquent child support obligation, municipal fines arising from parking tickets, and a statutory debt resulting from the towing and impound of an illegally parked vehicle did not arise from a credit transaction. As a result, the courts found that collection of those accounts was not a valid permissible purpose to obtain a consumer report. 


The following paragraph is also found directly on XXXX website, proving that they have knowledge that reporting delinquent child support transactions are illegal. 

If you use XXXX consumer report services in connection with the collection of an account, we advise you to promptly review the new case law with your regular attorney or compliance advisor. XXXX will be contacting each customer that is a third-party collector to discuss this issue. We expect to confirm with you that you are in compliance with this new interpretation. Until then, unless you advise otherwise, we are relying upon you to comply with your contract with XXXX and this new interpretation of the law. This means that you may obtain XXXX reports for collection purposes only when collecting on an obligation arising from a credit transaction, or where you have the written authorization of the consumer or a court order to obtain a consumer report. As an example, for collectors of delinquent child support debt, judgments, fines, or liens, you must have in hand : A court order authorizing a consumer reporting agency to provide a consumer report, A written authorization from the debtor to obtain a consumer report, or Some type of contractual agreement with the consumer that rises to the level of a credit transaction under law. 

XXXX XXXX Department of Child Support, nor XXXX, nor Equifax are in possession of ANY of the above listed documentation so again, I demand that XXXX XXXX Department of Child Support removes all negative reporting transaction history and marks my account PAID AS AGREED and that XXXX and Equifax reflect that change on my credit report immediately. 

Lastly, these laws must be enforced by the Consumer Financial Protection Bureau as stated in : 15 U.S. Code 6805 ( a ) 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