Consumer complaint received 2018-07-01
Product: Credit reporting, credit repair services, or other personal consumer reports — Credit reporting
Issue: Problem with a credit reporting company's investigation into an existing problem — Investigation took more than 30 days
Company: Experian Information Solutions Inc. (TX)

Re : Late Payment Removal/ Ref # XXXX This correspondence is in response to the letter I received regarding my goodwill request to have late payments removed from my credit score report. In the letter I was told that such reports could not be removed due to regulations promulgated by the XXXX and the FCRA. Contrary to these assertions, by failing to update previously reported information, XXXX  is in violation of Section 623 ( a ) ( 2 ) of the FCRA.

I have attached an FTC advisory opinion which interprets Section 623 ( a ) ( 2 ) of the FCRA. The issue posed in the advisory opinion is how a lender is to handle a situation when subsequent information updates a report that was allegedly accurate when it was made but no longer is accurate in the present time ( i.e., the identical situation I am currently in ).

The advisory opinion states that the Section 623 ( a ) ( 2 ) of the FCRA addresses the duty to correct and update information by furnishers, or persons who furnish information to consumer reporting agencies ( CRA ) such as credit bureaus. In particular, this section requires a person that has furnished to a consumer reporting agency information that the person determines is not complete or accurate to promptly notify the consumer reporting agency of that determination and provide any information needed to make it complete and accurate. Thus, on its face, this provision requires a furnisher to provide corrected or updated information to the consumer reporting agency that it had reported to originally. This duty extends to all student loan accounts reported to CRAs, regardless of whether they were accurate at one point, because the section requires the furnisher both to update accounts as well as to correct.

XXXX  representatives told me that because the delinquent payments were accurately reported in XX/XX/XXXX that any subsequently initiated deferments would not allow for XXXX  to update reports to CRAs to show that the payments were not late and actually in deferment. However, Section 623 ( a ) ( 2 ) clearly shows that the reports must be updated/corrected regardless of whether they were accurate at one point. * All of my XXXX accounts that were part of the XX/XX/XXXX late payments show deferment status effective as of XX/XX/XXXXor XX/XX/XXXX. Therefore, my credit reports do not currently accurately reflect previous payment statuses with XXXX, both as they actually existed and as XXXX  has recorded them. I am thus requesting that in compliance with Section 623 ( a ) ( 2 ) of the FCRA that the two accounts showing a 90-day late payment in XX/XX/XXXX be updated and/or corrected and removed.

In the event that these reports are not immediately updated to accurately reflect my payment status during XX/XX/XXXX, I intend on filing disputes with each credit bureau in addition to official complaints with the FTC, XXXX, and pursue other legal routes if necessary.

Please respond within 15 days of the date of this letter with an update to this matter.

Very Truly Yours, [ *Footnote : For the record, I do not agree that XXXX   ever accurately reported the status of my loans. I sent submitted a deferment and spoke to a representative timely leaving me to suspect a processing error on behalf of XXXX. In addition to the possible Section 623 ( a ) ( 2 ) claim, I intend on disputing the processing of my deferment if need be. ]