Consumer complaint received 2025-07-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc.
State: FL

Complaint narrative:
I submitted a dispute and requested validation of a debt that XXXX XXXX is reporting on my personal credit. While this dispute was still active and unresolved, XXXX sold the debt to another company. However, instead of removing the account or updating it accurately, they just updated the account descriptor to say " validation in progress '' after the debt was already sold and is no longer in their possession. Additionally, the balances vary between what XXXX is reporting on XXXX, Experian, and what the debt buyer is reporting as the balance due. 

This is deceptive and misleading. It creates the false impression that XXXX still owns the debt and is actively working to validate it, when in fact they no longer have the legal right to validate or collect on it. This is a violation of federal law and is causing harm to my credit profile and consumer rights.

Federal Statutes to Cite as Violated : 1. Fair Credit Reporting Act ( FCRA ) 623 ( a ) ( 1 ) ( A ) A furnisher of information shall not furnish any information relating to a consumer to any consumer reporting agency if the person knows or has reasonable cause to believe that the information is inaccurate. 

Violation : XXXX knowingly furnished false or misleading data ( validation in progress ) while no longer owning the account.

2. FCRA 623 ( a ) ( 2 ) Duty to Correct and Update Information If a furnisher determines that any information it has provided to a CRA is not complete or accurate, it shall promptly notify the CRA and provide corrections. 

Violation : XXXX failed to notify the CRA that they no longer own the account, and instead updated the descriptor with misleading information.

3. FCRA 611 ( a ) ( 5 ) ( A ) Handling of Disputed Information If the disputed information is found to be inaccurate or unverifiable, the furnisher must delete it. 

Violation : XXXX did not validate the debt and should have deleted the tradeline once it was sold and validation could no longer be performed.

4. Fair Debt Collection Practices Act ( FDCPA ) 807 ( 8 ) [ 15 U.S.C. 1692e ( 8 ) ] Prohibits communicating or threatening to communicate to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed. 

Violation : XXXX is still updating the credit file as though they are engaged in verification when they are not, and can not be, because they no longer own the debt.

5. FCRA 623 ( b ) Furnisher 's Duty to Investigate Upon Dispute If a consumer disputes any information with a CRA, the furnisher is required to conduct a reasonable investigation.

Violation : The company can not reasonably investigate or validate a debt it no longer owns continuing to imply that it is doing so is deceptive. 

IRS Code : If XXXX  previously marked the account as charged off but did not issue a 1099-C, that could be an additional argument under : 26 U.S. Code 6050P Information returns for cancellation of indebtedness IRS requires reporting of cancellation/charge-off of $ XXXX debt. 

This misleading update was made after the account was sold, creating the false appearance that XXXX is still handling validation. 

I request that the CFPB : Investigate this deceptive update Ensure the furnisher accurately reports the sale and closure of the account Remove or suppress this tradeline from my credit report due to these violations

Company public response: Company has responded to the consumer and the CFPB and chooses not to provide a public response
Company response to consumer: Closed with explanation