Consumer complaint received 2024-11-17 00:00:00
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.
State: FL

Complaint narrative:
On XX/XX/XXXX, I received a copy of a XXXX XXXX report and noticed XXXX XXXX  has conspired with XXXX, XXXX to unlawfully report misleading and false information on the Consumers credit file, thus defaming the Consumers character and affecting their creditworthiness. This constitutes a violation of 18 U.S.C. 894 and 15 U.S.C. 1681a ( d ). By sharing nonpublic information, both XXXX XXXX  and XXXX have engaged in unlawful practices of extortion and fraud, damaging the Consumers financial reputation and causing undue harm. This complaint is prompted by a series of fraudulent acts and misrepresentations conducted by XXXX XXXXXXXX XXXXXXXX. in connection with the XXXX XXXX  XXXX  account # XXXX issued to XXXX XXXX XXXX, and related to the charge-off practices, credit reporting, and improper use of consumer data. Specifically, the facts outlined below indicate a violation of numerous laws, including but not limited to violations under the Securities Act of 1933, the Uniform Commercial Code ( UCC ), Fifth and Fourteenth Amendment Due Process Violations, 18 U.S.C. 894 ( unlawful extortion ), and 12 U.S.C. 1431 ( duties of banks ). The following is a summary of the core legal issues and unlawful conduct : Fraudulent Misrepresentations and Securities Fraud XXXXXXXX XXXX XXXXXXXX. is alleged to have engaged in fraudulent practices related to the consumers credit card account. Specifically, XXXXXXXX XXXX failed to provide the 1099-C Income Statement, which should have been issued after the charge-off of the consumers account, as required under IRS Publication 4681. The charge-off represents taxable income to the debtor under applicable tax laws, and XXXX XXXX  failure to issue the necessary tax documents constitutes both fraudulent conduct and securities fraud.

Furthermore, in violation of 12 U.S.C. 1813 ( l ) and Uniform Commercial Code 8-201 ( 1 ), XXXX XXXX  acted as an originator/transferor/seller/sponsor of the credit card receivables and claimed a security interest in the Pledged Deposit Account. XXXX XXXX  did not disclose that the credit card application itself was used as collateral to fund the account on the consumers behalf. This amounts to securities fraud under Section 17 of the Securities Act of 1933 and violates Section 10 of the same Act, which mandates that investors receive full and fair disclosure regarding the nature of the investment. As the consumers name and Social Security Number were used to facilitate this transaction, the consumer was unknowingly placed in the position of an " issuer '' of securities, and no proper disclosures or prospectus were provided.

2. Violation of Consumer Rights and Unjust Enrichment As per XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX has unjustly enriched itself at the expense of the Consumer. The contract between the Consumer and XXXX XXXX  lacks mutuality and consideration. While XXXX XXXX  received significant consideration from the credit card application, utilized the consumers personal information and Federal Reserve notes to secure financing, the Consumer received no equity or benefit from the transaction. XXXX XXXX, through its securitization of the receivables and improper accounting practices, unfairly profited at the Consumers expense. 
The XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX  case supports the notion that unjust enrichment claims should proceed where a party has received an undue benefit by wrongful means. Here, XXXX XXXX  failure to provide the consumer with proper consideration, tax reporting, and disclosures constitutes unjust enrichment and a breach of contract. 
3. Failure to Disclose and Violation of Due Process XXXX XXXX failure to provide the Consumer with required disclosures regarding the terms of the credit card agreement, the use of the Consumers credit card as collateral, and the associated risk of securitization constitutes a violation pursuant 15 U.S.C. 1681a ( d ) and the Fifth and Fourteenth Amendments ( lack of due process in handling the consumers financial and personal data ). By failing to disclose the full scope of its transactions, XXXX XXXX  deprived the Consumer of an informed decision-making process, thus depriving the Consumer of the opportunity to seek remedy through due process as guaranteed by the U.S. Constitution.

Additionally, Uniform Commercial Code 8-202 ( b ) ( 1 ) specifies that securities may be deemed invalid if the issuer asserts a defect involving a constitutional violation. Here, the lack of notice regarding the true nature of the transaction, including fraudulent misrepresentations, violated the Consumers right to full disclosure and due process.

4. Unlawful Use of Nonpublic Consumer Information and Extortion XXXX XXXX  has conspired with XXXX, XXXX to unlawfully report misleading and false information on the Consumers credit file, thus defaming the Consumers character and affecting their creditworthiness. This constitutes a violation of 18 U.S.C. 894 and 15 U.S.C. 1681a ( d ). By sharing nonpublic information, both XXXX XXXX  and XXXX have engaged in unlawful practices of extortion and fraud, damaging the Consumers financial reputation and causing undue harm.

Company response to consumer: Closed with non-monetary relief