Consumer complaint received 2025-07-02 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Problem with personal statement of dispute
Company: Experian Information Solutions Inc.
State: CA

Complaint narrative:
b'Complaint Regarding XXXX  Mortgages Failure to Report Mortgage Payments Post-Bankruptcy\n\nBackground\n\nI am writing to file a formal complaint against XXXX  XXXX  XXXXXXXX XXXX  for its ongoing refusal to report my mortgage payment history to the XXXX  major credit bureaus XXXX Experian, XXXX XXXX since my bankruptcy discharge. In XXXX  I filed for bankruptcy and obtained a discharge of personal liability on my XXXX  loan. I did not sign a reaffirmation agreement for the XXXX, meaning I was relieved of personal liability for the debt as of the discharge date. Despite that, I chose to continue making every mortgage payment on time to XXXX  in order to keep my home. I have never been late on a payment post-discharge. However, XXXX is not reporting any of this positive payment history to the credit bureaus. This failure to report is XXXX  XXXX  my credit, as I have no active credit history reflecting these timely XXXX  payments.\n\XXXX  has told me (in writing and/or by phone) that because the debt was discharged in bankruptcy and not reaffirmed, they are not obligated or not willing to report my payments to the credit bureaus. I find this stance to be unfair, deceptive, and harmful. I am requesting that the Consumer Financial Protection Bureau (CFPB) investigate this issue and require XXXX  to fulfill its responsibilities with regard to fair and accurate credit reporting. If XXXX  continues to neglect or refuse its duty to report my mortgage appropriately, I am prepared to pursue legal action to protect my rights.\n\XXXX  Refusal to Report and Its XXXX  Consequences\n\XXXX  refusal to report my ongoing mortgage payments has had tangible negative consequences on my financial life. Because no current mortgage account is showing up on my credit reports, my credit score and overall creditworthiness remain XXXX  XXXX. I effectively get no credit for the fact that I have been responsibly paying a major loan for which Im still accountable (at least to keep my home) . This lack of reporting makes it appear to other lenders as if I have no active mortgage or, worse, that I walked away from my mortgage after the bankruptcy. In reality, I have been diligently paying the loan every month  but to anyone reviewing my credit, its as if this positive history doesnt exist.\n\nThis situation is not unique to me. In a recent legal case, a homeowner in New Hampshire faced an almost identical problem with XXXX. After a bankruptcy (in that case, a dismissed XXXX XXXX ), XXXX  failed to report the borrowers timely mortgage payments, which thwarted the borrowers attempts to refinance at better rates . One prospective lender denied a refinance application solely because the XXXX  XXXX  did not appear on any of the credit bureau reports . Astonishingly, XXXX  itself then refused to refinance the loan, citing the very lack of credit reporting that XXXX  caused (XXXX  stated the borrower needed to reaffirm the mortgage from the bankruptcy  even though reaffirmation was not applicable in that case) . Instead of simply reporting the payment history to the bureaus, XXXX  forced that borrower to undergo an arduous process of proving creditworthiness through alternative means . This real-world example illustrates how XXXX  failure to report timely payments can trap consumers in a vicious cycle, preventing them from rebuilding credit or obtaining new credit on fair terms.\n\nIn my case, the XXXX is clear: I have essentially no active credit accounts on my credit report because my mortgage  my primary XXXX  account  is unreported. This makes it extremely difficult for me to obtain new credit, whether it be XXXX  cards, XXXX  loans, or refinancing my home loan, because lenders see a thin or empty credit file. It is well-known that on-time mortgage payments are a key positive factor in credit scoring and credit decisions. By omitting my spotless payment record, XXXX  is denying me the benefit of my good behavior, and this is directly impeding my financial recovery post-bankruptcy. I feel I am being punished for exercising my legal right to a bankruptcy discharge. XXXX stance effectively says that unless a debtor reaffirms their mortgage (i.e., gives up the fresh-start protection of the bankruptcy for that debt), the debtor will not be able to rebuild credit via their mortgage. This practice is coercive and unfair  it tries to pressure consumers into reaffirmation or else suffer a credit disadvantage  .\n\nMisrepresentation of Obligations and Inaccurate Information\n\XXXX has indicated that it believes it has no obligation to report my mortgage since the debt was discharged in bankruptcy. While it is true that no law compels a creditor to furnish data to credit bureaus in the first place, it is also true that if a creditor does furnish information, that information must be fair, accurate, and not misleading under the law . My understanding is that XXXX  did furnish information about my mortgage around the time of the bankruptcy  presumably updating the account to indicate it was included in bankruptcy with a XXXXXXXX  balance. But the story doesnt end there. After the discharge, I continued to make payments and the mortgage remains in force (the lien exists on my home). By failing to update or report anything at all about the subsequent payments and current status, XXXX is effectively leaving an incomplete and misleading picture on my credit report. The credit bureaus either show the mortgage as XXXX with no further updates, or not at all. This omission of crucial current information creates a false impression of my creditworthiness. It suggests I have no ongoing mortgage or that I have no recent payment history, which is inaccurate and materially misleading in evaluating my credit risk.\n\nBoth federal and state laws address the duty of furnishers to ensure accuracy and completeness of reported information:\n\t\tFair Credit Reporting Act (FCRA), 15 U.S.C. 1681s-2: Under the FCRA, companies that furnish information to credit reporting agencies must not report information they know (or have reasonable cause to believe) is inaccurate. They also must correct and update information so that it remains accurate and complete . Intentionally or negligently omitting relevant information can make an existing report on an account misleading. In fact, federal regulations encourage furnishers to include all information that is needed to ensure the information is not materially misleading in evaluating a consumers creditworthiness . By not reporting my ongoing payments, XXXX  is withholding information that is certainly material to my creditworthiness (the difference between a mortgage that is current versus one that appears dormant or nonexistent is enormous). Once XXXX  chose to report the account as discharged, it should have also reported any pertinent subsequent information (such as the fact that I have kept the loan current) to avoid a materially misleading impression.\n\t\tCalifornia Consumer Credit Reporting Agencies Act (CCRAAXXXX XXXX XXXX XXXX XXXX I am a resident of XXXX, and this state law explicitly provides that [a] person shall not furnish information on a specific transaction or experience to any consumer credit reporting agency if the person knows or should know the information is incomplete or inaccurate. . This means a furnisher like XXXX  can be held liable for failing to provide complete and accurate information. XXXX  knows my mortgage is active and being paid (they send monthly statements and accept my payments), so they know that reporting nothing (or an old status from time of bankruptcy) is incomplete and thus misleading. The CCRAA gives consumers like me the right to sue a furnisher that willfully or negligently provides incomplete or inaccurate information . I contend that XXXX  blanket policy of refusing to report post-bankruptcy payments falls under this prohibition  it results in credit reporting that is incomplete and harmful.\n\nAdditionally, I believe XXXX  behavior may violate the spirit of the bankruptcy discharge injunction. Congress intended the bankruptcy discharge to give honest debtors a fresh start, not to trap them in credit purgatory. By refusing to report my account as current, XXXX  is effectively undermining my fresh start. Some industry sources claim that mortgage lenders arent allowed to report on discharged debts at all , but this is not a codified law or absolute rule  it is a conservative (and self-serving) interpretation that lenders use to shield themselves. In reality, there is no statute that outright forbids reporting a discharged debt; the FCRA and bankruptcy laws only mandate that any such reporting be accurate (e.g., showing the debt as discharged with no personal liability). If XXXX  is asserting that the bankruptcy prevents them from reporting, I challenge that position as false or at least XXXX misleading. Nowhere does the Bankruptcy Code or FCRA state that a creditor may not report voluntary payments on a discharged debt. XXXX  could report my payments in a manner consistent with the discharge (for example, noting the loan was discharged in bankruptcy but voluntarily being paid). Instead, they have chosen not to report at all, which serves only their interests and harms mine. Using the lack of credit reporting as a weapon to penalize debtors for not reaffirming has been acknowledged by attorneys and is unfortunately common practice   but common does not mean right or fair.\n\nViolation of Consumer Protection Laws (UDAAP) and Good Faith\n\XXXX  conduct raises serious concerns under the Consumer Financial Protection Acts prohibition on Unfair, Deceptive, or Abusive Acts or Practices (UDAAP). An act is unfair if it causes substantial injury to consumers that is not reasonably avoidable and not outweighed by benefits. Here, the XXXX  to me is substantial: I am being denied normal credit opportunities and score improvements despite doing everything right (paying on time). I could not have reasonably avoided this XXXX   short of the imprudent choice of reaffirming the mortgage during bankruptcy (which most consumer attorneys advise against), there was nothing I could do to force XXXX  to report. The XXXX XXXX XXXX XXXX credit score is also not outweighed by any countervailing benefit to consumers. In fact, all the benefit of this practice accrues to XXXX, which avoids the administrative effort of reporting and perhaps uses the policy as leverage against borrowers. The CFPB has previously taken action against XXXX  for deceptive and unfair practices, including issues related to credit reporting. In XXXX XXXX, the CFPB found that XXXX  misled certain homeowners and inaccurately reported information to credit bureaus (in that case, regarding XXXX  XXXX  forbearances) . XXXX  was ordered to repair its faulty business practices and paid a hefty civil penalty . This demonstrates that XXXX  is no stranger to CFPB enforcement for credit reporting issues and that the CFPB expects it to accurately report homeowner information. I urge the CFPB to similarly scrutinize XXXX  practice in my case as an unfair practice.\n\nFurthermore, XXXX  refusal to report my payments could be seen as a breach of the implied covenant of good faith and fair dealing in our ongoing mortgage relationship. Even though my personal liability was discharged, as long as I continue to make payments and XXXX  accepts them, we have an ongoing lender-borrower relationship with respect to the property. XXXX  actions (or inactions) are depriving me of the benefits I should reasonably expect from our relationship  namely, that if I pay on time, I build positive credit and eventually gain the ability to refinance or otherwise improve my financial position. A federal court has noted that a servicers failure to honor obligations and fair dealing with a borrower can give rise to claims  . In the Palladino v. XXXX  case mentioned earlier, the court suggested that if XXXX  failure to report payments caused the borrower to miss a refinance opportunity, it could certainly be problematic for XXXX  from a legal standpoint . In my situation, XXXX  conduct is indeed causing me tangible XXXX  and is certainly problematic and legally suspect.\n\nDemand for Relief\n\nI am requesting the CFPBs assistance in resolving this matter. Specifically, I ask that the CFPB compel XXXX XXXX XXXX to begin reporting my mortgage account and payment history to all three major credit bureaus in a fair and accurate manner. This reporting should reflect that while the debt was discharged in bankruptcy (no personal liability), I have continued to pay as agreed and the loan is current. There is no legitimate reason that my perfectly timely payment record should be hidden from my credit profile. If XXXX  is concerned about legal compliance in how to report a discharged-but-paid loan, they can easily consult credit reporting guidelines or work with the credit bureaus to report it with the appropriate commentary (for example, noting the balance owing on the home but XXXX personal liability due to XXXX XXXX  discharge). What is not acceptable is the status quo of complete silence.\n\nI also request that CFPB ensure XXXX  ceases providing any misinformation. XXXX  representatives have essentially told me (and other borrowers, as evidenced) that we dont have to report because you didnt reaffirm. This statement is at best a half-truth and at worst a deception. While they might not be legally compelled to report, they are legally obligated to be truthful in whatever they do choose to report, and they should not mislead consumers about their rights. The CFPB should instruct XXXX  that using non-reporting as a pressure tactic or excuse is not an acceptable practice in the eyes of federal regulators.\n\nFinally, if XXXX  refuses to take corrective action, I want it to be on record that I will pursue all available legal remedies. This may include filing a lawsuit for violation of the FCRA and Californias CCRAA for knowingly reporting incomplete/inaccurate information , and any other applicable laws. I am also aware that consistent with XXXX XXXX XXXX  if I dispute this matter with the credit bureaus and XXXX  fails to conduct a proper investigation and correct the information, I would have a private right of action under the FCRA. I truly hope it does not come to that. My goal is simple and fair: I want my good payment history to be reflected in my credit reports, so that I can rebuild my credit after bankruptcy as the law intends.\n\nConclusion\n\nIn summary, XXXX XXXX XXXX is wrongfully withholding my positive credit information, under the justification of my past bankruptcy. This behavior is causing me XXXX  XXXX  by stalling my credit recovery. There are strong public policy reasons and legal provisions that support my position that this situation must be rectified. I urge the CFPB to take action to protect consumers in my situation. XXXX should be directed to immediately begin reporting my XXXX  loan status and payment history, or else provide a valid legal justification (which I contend does not exist) for why it will not do so. If they cannot provide one, then their continued failure to report should be deemed an unfair and abusive practice that the CFPB will not tolerate.\n\nI appreciate the CFPBs attention to this matter. I am providing any necessary documentation (e.g. proof of payments, correspondence with XXXX, etc.) to support my complaint. I simply want whats fair: credit for the mortgage payments I have made and continue to make. By addressing this issue, the CFPB can help ensure that consumers emerging from bankruptcy are not unfairly penalized by servicers who hide positive credit behavior. Thank you for your consideration and prompt action on this complaint.\n\n\nReferences: (supporting statutes, cases, and facts)\n\t\tCalifornia Civil Code 1785.25(a)  prohibits furnishing information to credit agencies that is knowingly incomplete or inaccurate .\n\t\tPalladino v. XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX   Borrowers refinance was denied because XXXX  failed to report her mortgage; XXXX  improperly insisted on reaffirmation. Court noted such failure to report, causing missed opportunities, could certainly be problematic for the servicer  .\n\t\tFTC Advisory Letter XXXX XXXX XXXX  creditors must report discharged debts accurately (as discharged/$0 balance) and not misreport them  . This underscores that accurate reporting post-bankruptcy is required; by extension, omitting ongoing payments is misleading.\n\t\tCFPB Enforcement Action (2022)  CFPB fined XXXX XXXX XXXX for, inter alia, inaccurately reporting homeowners information to credit bureaus during XXXX  forbearances . Demonstrates CFPBs stance that XXXX  must report consumer information correctly.\n\t\tConsumer accounts (forums, legal Q&A)  It is widely observed that some lenders refuse to report post-bankruptcy payments unless a debt is reaffirmed. This tactic has been described as a weapon used to coerce reaffirmation, technically legal because no law forces reporting, but only if they do report must it be truthful . Such practices are controversial and XXXX  to consumers fresh start.'

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