Consumer complaint received 2025-08-11 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: TX

Complaint narrative:
SUMMARY OF COMPLAINT I, XXXX XXXX XXXX, suffered ascertainable economic damage as a direct and proximate result of XXXX XXXX XXXX XXXX 's misrepresentations, deceptive practices, misconduct, breach of contract, mail fraud, breach of privacy, insurance fraud, etc., including but not limited to paying excessive interest, loss of expected rebate benefits, and diminished value of the contract bargain. The causes of injury are further described therein : A. - MISREPRESENTATION OF ANNUAL PERCENTAGE RATE ( APR ), MISREPRESENTATION & DECEPTION XXXX. XXXX XXXX XXXX XXXX is a creditor as defined under the Truth in Lending Act ( TILA ), 15 U.S.C. 1602 ( g ), and the Texas Finance Code 348.001 ( 3 ), engaged in the business of financing motor vehicle purchases in the State of Texas. 



XXXX. On or about XX/XX/year>, I, XXXX XXXX XXXX entered into a Retail Installment Sales Contract ( XXXX ) with XXXX XXXX XXXX XXXX  for the financing of a motor vehicle. XXXX XXXX XXXX XXXX not only misrepresented that a " down payment '' was required but also represented in the TILA disclosure statement that the Annual Percentage Rate ( APR ) for my loan was [ stated APR 7 %, to be repaid in [ XXXX ] monthly payments of $ [ XXXX ]. 



XXXX. XXXX XXXX XXXX XXXX calculated interest not by using a true annual rate, but by applying a daily periodic rate to the outstanding principal balance, compounding interest in a manner that front-loaded interest charges and extended the time in which I would pay interest. This is not only deceptive but would be considered " breach of contract '' due to the extension and/or modification beyond the mutually agreed terms of the contract. 



XXXX. XXXX XXXX XXXX XXXX failed to disclose that the stated APR did not reflect the actual cost of credit unless I, XXXX XXXX XXXX, made substantially greater ( double ) payment, one portion toward principal and XXXX toward interest. XXXX XXXX XXXX XXXX also failed to disclose that if I, XXXX XXXX XXXX, made only the scheduled payments, I would ( a ) indefinitely remain behind on accrued interest near the end of the loan term, and ( b ) not receive the purported interest rebate without making such extra payments. Again, this is not only deceptive but would be a considered " breach of contract '' due to the extension and/or modification beyond the mutually agreed terms of the contract. 



XXXX. As a result of this calculation method and nondisclosure that is indeed absent from the " Itemization List '' within the contract, the actual cost of credit exceeded the stated APR, causing the disclosed APR to be inaccurate within the meaning of 12 C.F.R. 1026.22. 



XXXX XXXX XXXX XXXX 's conduct constitutes : A violation of the Truth in Lending Act, 15 U.S.C. 1638 ( a ) ( 4 ), which requires creditors to accurately disclose the APR as the annualized cost of credit actually imposed ; A violation of Regulation Z, 12 C.F.R. 1026.22 ( a ), which prohibits the disclosure of an inaccurate APR ; An unfair or deceptive act or practice under the Federal Trade Commission Act, 15 U.S.C. 45 ( a ) ; A violation of the Texas Deceptive Trade PracticesConsumer Protection Act ( DTPA ), Tex. Bus. & Com. Code 17.46 ( b ) ( 5 ), ( 7 ), and ( 12 ), by : Misrepresenting the characteristics, uses, and benefits of financing services ; Representing that the agreement conferred rights or obligations it did not in fact confer ; and A violation 15 U.S. Code 1662 - Advertising of downpayments and installments - No advertisement to aid, promote, or assist directly or indirectly any extension of consumer credit may state ( 1 ) that a specific periodic consumer credit amount or installment amount can be arranged, unless the creditor usually and customarily arranges credit payments or installments for that period and in that amount.

( 2 ) that a specified downpayment is required in connection with any extension of consumer credit, unless the creditor usually and customarily arranges downpayments in that amount. 



XXXX XXXX XXXX XXXX 'S Failure to disclose information concerning the financing that was known at the time of the transaction triggered inducement into a transaction I would not have entered into had the information been disclosed. 



B. - THEFT BY DECEPTION, BREACH OF PRIVACY RIGHTS & PERMISSIBLE PURPOSES - Facts to support complaint When an auto loan is originated, the creditor ( XXXX XXXX XXXX XXXX ) often bundles multiple consumer 's signed retail installment contract with many others into an investment product called an Asset-Backed Security ( ABS ). 



These bundles are sold to investors through a trust or special purpose vehicle ( SPV ). 

The contract is no longer just a private agreement between you and the original lender it becomes a financial instrument traded in capital markets. ( Separating the note from the bond. ) Embedded in these contracts lies our personal identifiers ( name, address, SSN, income, payment history ) and financial details ( loan amount, interest rate, collateral info ). 



XXXX. XXXX XXXX XXXX XXXX failed to provide Consumer Disclosure and/or Informed Consent. 



XXXX. XXXX XXXX XXXX XXXX failed to provide Consumer Disclosure and/or Informed consent within the reviewing and signing of the Retail Installment Sales Contract ( RISC ), ( TILA ) Truth in Lending disclosures within the contract do not explicitly explain that the contract will be sold as part of a pooled security to third parties who are not providing direct credit to XXXX XXXX XXXX XXXX 



XXXX. XXXX XXXX XXXX XXXX failed to provide Consumer Disclosure and/or Informed consent within the reviewing and signing of the Retail Installment Sales Contract ( XXXX ), I, XXXX XXXX XXXX XXXX XXXX led to believe the relationship was solely between myself and XXXX XXXX XXXX XXXX XXXX not an unknown network of investors. 



XXXX. XXXX XXXX XXXX XXXX 's converted Consumer Identity into a Tradeable Commodity. 

XXXX XXXX XXXX XXXX failed to provide Consumer Disclosure of the loan contract being converted into a security without express permission. 

Myself and millions of others, identity and financial obligations are effectively monetized through a pool of unknown investors.. 

This would constitute as enrichment profiting from your personal and financial data without legal basis or compensation to the consumer. 



XXXX. XXXX XXXX XXXX XXXX not only stated that I owed a debt but also used language and symbols on an envelope in communication by mail indicating that they were in the debt collection business and/or that the communication related to the collection of a debt ; XXXX XXXX XXXX XXXX XXXX XXXX constitutes : Misrepresentation and violation of Permissible Purpose under the Fair Credit Reporting Act ( FCRA ) Permissible purposes to access or share your personal credit information are narrowly defined in 15 U.S.C. 1681b ( e.g., evaluating your credit application, servicing your account, complying with a court order ).

Violation of Fair Credit Reporting Act ( FCRA ) 15 U.S.C. 16811681x 1681b Limits access to consumer reports to specific permissible purposes.

1681e Requires users of consumer information to maintain reasonable procedures to ensure compliance.

Investors in securitized pools are not users with a permissible purpose, yet receive embedded credit data. 



A violation of Gramm-Leach-Bliley Act ( GLBA ) 15 U.S.C. 68016809 Requires financial institutions to give notice and obtain consent before sharing nonpublic personal information with non-affiliated third parties. 

Pooling and selling ABS with consumer identifiers constitutes disclosure without proper opt-out or consent. 
A violation of Truth in Lending Act ( TILA ) 15 U.S.C. 16011667f Mandates accurate disclosure of the creditors identity and assignment of contracts.

Failure to disclose that the creditor will immediately transfer your loan into a securitization trust is a material misrepresentation.

A violation of Identity Theft 18 U.S.C. 1028 & 1028A Which criminalizes knowingly transferring, possessing, or using a means of identification without lawful authority. 

Selling a consumer 's personal identifiers as part of an investment security without explicit authority brings forth the element of without lawful authority. 



A violation of Texas Business & Commerce Code 521.052 Restricts disclosure of sensitive personal information.

A violation of Texas Finance Code 302, 348, 349 Prohibits deceptive trade practices in consumer credit transactions. 

A violation of Texas Deceptive Trade PracticesConsumer Protection Act ( DTPA ) Tex. Bus. & Com. Code 17.46 ( b ) ( 5 ), ( 7 ), ( 24 ) Prohibits misrepresenting the terms of an agreement, failing to disclose information, and taking advantage of a consumers lack of knowledge.

A violation of 15 U.S. Code 1692b - Acquisition of location information - ( 2 ) not state that such consumer owes any debt ; ( 5 ) not use any language or symbol on any envelope or in the contents of any communication effected by the mails or telegram that indicates that the debt collector is in the debt collection business or that the communication relates to the collection of a debt ; Conclusion : The XXXX XXXX XXXX XXXX engaged in deceptive and unfair trade practices by securitizing my retail installment sales contract and embedding my personal and financial identifiers into Asset-Backed Securities sold to third-party investors without my knowledge or consent. This practice misrepresented the nature of the credit relationship, exceeding the scope of permissible purposes under 15 U.S.C. 1681b, violated the privacy protections of 15 U.S.C. 68016809, and constituted an unauthorized transfer of consumers ' means of identification in violation of 18 U.S.C. 1028. XXXX XXXX XXXX XXXX 's actions resulted in unjust enrichment by monetizing my identity and contractual obligations as a tradable investment product. 



C. - INSURANCE FRAUD, MISREPRESENTATION & DECEPTION - Facts to support complaint When you buy a car through dealer-arranged financing, the dealership sells your Retail Installment Sales Contract ( RISC ) to a finance company or bank at or near the time of sale. 



The finance company pays the dealership the full amount financed upfront ( minus any dealer reserve or buy rate adjustment ). 



This means the dealer has been paid in full immediately for the vehicle theres no waiting on the consumers payments. 



XXXX XXXX XXXX XXXX and many others alike induce a consumer into default early in the loan, in that event the lender will : Repossess your vehicle. 

Apply any auction sale proceeds or insurance payout to the account. 

Claim the remaining loan balance as a loss on paper. 



It is key to note that even greater deception takes place when that loss is not truly a loss at all, especially when the lender has not only paid themself in full through In-House-Financing but XXXX has already recovered the full principal value through the original sale of the contract plus other sources. 



XXXX. XXXX XXXX XXXX XXXX In-House-Financed the XXXX purchase for myself, XXXX XXXX XXXX. 



XXXX. XXXX XXXX XXXX XXXX sold me GAP insurance, under the misrepresentation that it is mandatory and through deceptive sales practices. The premium was then rolled into my loan amount. 



XXXX. XXXX XXXX XXXX XXXX deliberately accelerated default on the loan by : Misrepresenting the applying of payments to late fees or other charges instead of interest. 

Failing to provide proper credit for overpayments. 

Implementing unfair or undisclosed loan servicing practices. 



XXXX. XXXX XXXX XXXX XXXX then initiated insurance fraud by recording a Write Off and Total Loss of the total balance of the vehicle. This is not only a tax benefit to XXXX XXXX XXXX XXXX  but also activated the GAP Insurance, which in turn pays the " gap '' amount ( the difference between the vehicle 's value and the remaining loan balance ) to the creditor, not the consumer. This would constitute as a Double Dip : The deception and fraud lies in XXXX XXXX XXXX XXXX recovering both through the tax write-off AND the GAP insurance payout for the same debt, effectively " double-dipping ''. 



Consumer 's Continued Burden : Despite the loan company 's recovery, consumers such as myself are still held responsible for remaining balances, collection fees, or negative marks on their credit report.

Note and Fact : GAP ( Guaranteed Asset Protection ) is supposed to cover the difference between your cars actual cash value ( ACV ) and your loan balance if the car is totaled or stolen. 



XXXX XXXX XXXX XXXX 's conduct constitutes : A violation of The Consumer Law Group, P.C. and Regulation Z- which require clear and accurate disclosures about loan terms, costs, and fees. Failing to disclose the true nature of the GAP insurance or intentionally creating conditions for default violate transparency requirements.

A violation of the Federal Trade Commission Act ( FTC Act ) : This act prohibits unfair and deceptive acts or practices in commerce. The alleged scheme could be considered an unfair or deceptive practice under this act. 



A violation of the Consumer Financial Protection Act ( CFPA ) : This act established the Consumer Financial Protection Bureau ( CFPB ), which enforces consumer financial protection laws and regulations. The CFPB has taken action against companies engaging in unfair, deceptive, or abusive practices in auto loan servicing, including issues related to optional add-on products and payment misapplication, which are relevant to this scenario. 



A violation of Texas Deceptive Trade Practices-Consumer Protection Act ( DTPA ) : This act prohibits a variety of false, misleading, and deceptive practices, including : Misrepresenting the characteristics, ingredients, uses, benefits, or quantities of goods or services. 

Failing to disclose information about goods or services that was known at the time of the transaction and if the failure to disclose was intended to induce the consumer into a transaction they would not have entered into otherwise. 

This is a direct violation of the DTPA, allowing the consumer to recover economic damages, mental anguish, and attorney 's fees.

A violation of Texas Penal Code - Insurance Fraud : This code addresses fraudulent insurance acts. Intentionally filing a GAP insurance claim after already recovering the debt through a write-off could constitute insurance fraud.

Texas Department of Insurance ( .gov ). ( Currently requesting report. ) A violation of Texas Finance Code : This code regulates consumer loans, including interest computation methods and delinquency charges. Violations related to misapplying payments or charging excessive late fees are addressed under this code. 



D. - ABUSE OF CAPITOL STOCK FOR AUTO LOANS & DECEPTION - Facts to support complaint Auto finance companies, including both banks and non-bank lenders, obtain funds to issue auto loans through various channels, one of which can be leveraging their own capital stock. XXXX XXXX, This involves using the company 's equity ( capital stock ) as a base to generate funds for lending or as a form of security in financial markets. 



Capital stock and loan financing - Definition : Capital stock represents the ownership shares of a company, representing its equity. These funds are contributed by investors who own a piece of the company. 



Financing Operations : Auto finance companies utilize these capital funds to directly finance loans, operate their business, and/or use as a basis to issue debt or asset-backed securities ( ABS ).

Asset-Backed Securities ( ABS ) : Auto ABS are structured financial products where auto loans are bundled together and then sold to investors as securities. NAIC. 



ABS and personal/financial information : Securitization Process : When auto loans are securitized and packaged into ABS, information about the underlying loans is included. XXXX XXXX, Loan Data : This information includes details like loan amounts, interest rates, payment schedules, borrower demographics, and sometimes credit scores. NAIC, Disclosure Concerns : The use of this personal and financial information without explicit consent from consumers is where the issue arises, under data privacy and consumer protection laws. 



XXXX. XXXX XXXX XXXX XXXX failed to provide complete transparency : Consumer was not made fully aware that their loan information is being included in ABS or how it might be used. 



XXXX. XXXX XXXX XXXX XXXX advertises " as low as '' interest rates for consumers knowing they are unlikely to qualify for those rates which is considered deceptive practices. XXXX Banking XXXX, XXXX. XXXX XXXX XXXX XXXX financed negative equity ( rolling the unpaid balances of a previous loans into a new one ) placing consumers underwater on new loans, increasing the risk of default and deficiency balances. Consumer Financial Protection Bureau ( XXXX ), XXXX. XXXX XXXX XXXX XXXX furnished inaccurate credit reporting, payment misapplication, and other servicing breakdowns including a report of profit/loss to my report that exacerbated problems for me as a consumer. Consumer Financial Protection Bureau ( .gov ), XXXX XXXX XXXX XXXX XXXX conduct constitutes : A violation of 12 U.S. Code 83 - Loans by bank on its own stock ( a ) General prohibition No national bank shall make any loan or discount on the security of the shares of its own capital stock. Section ( b ) exclusion, does not apply to this situation for the contract is not in good faith. 



A violation of Truth in Lending Act ( TILA ) & Regulation Z : Requires lenders to provide clear and accurate disclosures to consumers before extending credit. 



A violation of the Fair Credit Reporting Act ( FCRA ) : which regulates the collection, use, and disclosure of consumer credit information. NCUA ( .gov ), Improperly using or sharing credit information without a permissible purpose or the consumer 's consent.

A violation of the Federal Trade Commission Act ( FTC Act ) : Which prohibits unfair and deceptive acts or practices in commerce. The CFPB has issued regulations under this act to protect consumers in various financial markets, including auto lending. 

Misrepresenting loan terms, advertising unattainable interest rates, or engaging in predatory lending practices. 
A violation of Gramm-Leach-Bliley Act ( GLBA ) : Requires financial institutions to protect the privacy of consumer information. Federal Trade Commission ( .gov ), Failing to maintain adequate security controls to protect customer information or improperly disclosing such information to third parties.

A violation of Texas Finance Code Chapter 342 : Consumer Loans : Regulates the terms and practices of consumer loans, including interest rates and delinquency charges. Texas Statutes ( .gov ), Charging usurious interest rates ( above the legal limit, which is 10 % in Texas in the absence of legislation setting a different maximum rate ). 



A violation of Texas Deceptive Trade Practices-Consumer Protection Act ( DTPA ) : Prohibits deceptive and misleading acts and practices that harm consumers. 

Failing to disclose material information ( such as the method of loan funding or its implications ), misrepresenting loan terms, or engaging in other deceptive marketing practices.

A violation of Texas Data Privacy and Security Act ( TDPSA ) : which requires businesses to protect consumers ' personal data and provides consumers with certain rights regarding their data. Texas Legislature Online ( .gov ) Texas Department of Information Resources ( .gov ), Improperly using, sharing, or failing to secure consumers ' personal information. 



D. - RIGHT TO PUBLICITY Definition : The right of publicity ( ROP ) is an individual 's right to control and profit from the commercial use of their name, image, likeness, voice, or other identifying characteristics.

Commercial Value : The ROP has significant commercial value, especially for public figures, celebrities, or individuals whose identity is tied to a brand or product.

Property Right : Courts have recognized the ROP as a property right, meaning it can be owned, licensed, transferred, and even inherited, similar to other assets. 



Financial instruments Definition : Financial instruments are contracts that represent a monetary value, such as stocks, bonds, loans, or derivatives. 



Equity Classification : An equity-linked financial instrument is classified as equity if it is indexed to the entity 's own stock and meets specific conditions for equity classification. 



Personal Data : While personal information may be used in the creation or evaluation of financial instruments ( e.g., credit assessments or securitization ), it is distinct from equity in the traditional sense.

Distinction and implications ROP as a separate asset : My name and likeness are considered a valuable property right under the ROP, separate from the financial instrument itself. 



Licensing and Compensation : When a financial institution such as XXXX XXXX XXXX XXXX, or other entities use a consumer 's name or likeness on a financial instrument for commercial purposes, they must obtain consent and provide fair compensation, often through a licensing agreement. Office of the Texas Governor ( .gov ) XXXX. XXXX XXXX XXXX XXXX used my name and likeness on the financial instrument being the Retail Installment Sales Contract ( RISC ) to monetize and sell to third party investors without my consent via permissible purposes. 



XXXX XXXX XXXX XXXX 's conduct constitutes : Unauthorized or exploitative use of NIL on a financial instrument violating my ROP and potentially other laws, such as those related to invasion of privacy or deceptive practices. LII | Legal Information Institute

Company response to consumer: Closed with non-monetary relief