Consumer complaint received 2024-09-02 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: Experian Information Solutions Inc.
State: CA

Complaint narrative:
On XX/XX/2024, the Bureau filed a lawsuit against XXXX XXXX, XXXX and XXXX XXXX, XXXX ( collectively, XXXX ), and XXXX founder and former CEO, XXXX XXXX ( XXXX ). XXXX purports to offer consumers nationwide a means to lease-to-own consumer goods at the point of purchase online and in stores. The Bureau alleges that XXXX purported leases were actually credit, and that XXXX and XXXX violated the Consumer Financial Protection Acts ( XXXX ) prohibition against unfair, deceptive, and abusive acts and practices by : misleading consumers regarding the nature and terms of XXXX agreements, including their exorbitant cost ; materially interfering with consumers ability to understand the terms and conditions of those agreements ; effectively locking consumers into these high-cost financing arrangements by making it difficult for consumers to terminate them and creating unfair barriers to returns ; misrepresenting consumers ability to return goods and the means by which returns could be accomplished ; misrepresenting to consumers that their contracts required the maintenance of autopay ; and providing deceptive advertisements and training to merchants, that created the likelihood that merchants would misrepresent the terms of XXXX agreements, mislead consumers about the ease of returns, and create confusion about whether XXXX product was credit or a lease. 

In its recent guidance, the FTC laid out three key principles. 

In XXXX, the FTC reminded companies that claims about a BNPL plan must be true for the typical consumer. The FTC has taken action against companies and retailers who have made claims that are true only for a subset of people. The FTC offered the example of a company who markets a payment plan as zero cost but, in fact, charges fees to the typical customer. 

Second, the FTC warned against hiding or obscuring material information from consumers. The FTC specifically mentioned deceptive tactics such as requiring users to navigate a maze of screens, using non-descript dropdowns or small icons, or burying information in dense Terms of Service documents. The FTC indicated that these tactics are often motivated by an effort to convert consumers into customers but distort consumer understanding. 

Third, the FTC reminded companies about the possibility of liability, even when multiple actors are involved. Any company that made misleading claims as well as anyone involved in harming consumers could be liable under the FTC Act. For example, when a customer returns a product through a BNPL plan, both the retailer and the BNPL company may be held liable for prolonged delays in refunding the customer. 
The Consumer Financial Protection Bureau ( CFPB ) has filed a lawsuit against XXXX XXXX, XXXX, XXXX XXXX XXXX XXXX, and their founder XXXX XXXX. The Bureau alleges that XXXX leases were actually credit agreements, and that XXXX and XXXX violated the Consumer Financial Protection Act ( XXXX ) by engaging in unfair, deceptive, and abusive practices. These practices include : The Consumer Financial Protection Bureau ( CFPB ) has filed a lawsuit against XXXX XXXX, XXXX, XXXX XXXX XXXX XXXX, and their founder XXXX XXXX. The XXXX alleges that XXXX leases were actually credit agreements, and that XXXX and XXXX violated the Consumer Financial Protection Act ( XXXX ) by engaging in unfair, deceptive, and abusive practices. These practices include : Misleading consumers about the nature and terms of XXXX agreements, including their high costs. 

Interfering with consumers ability to understand the terms and conditions of the agreements. 

Making it difficult for consumers to terminate the agreements and creating unfair barriers to returns. 

Misrepresenting consumers ability to return goods and the process for doing so. 

Misrepresenting that contracts required the maintenance of autopay. 

Providing deceptive advertisements and training to merchants, leading to further consumer confusion12. 

The CFPB is seeking injunctive relief to prevent future violations, monetary relief for consumers, and civil money penalties12. 

In accordance to the information above my rights have been violated and frankly tired of requesting Experian to do their job and yet they feel some need to play XXXX XXXX with my life and its grounds for a law suit having to constantly do their job for them.

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