Consumer complaint received 2025-05-21 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with a company's investigation into an existing problem — Their investigation did not fix an error on your report
Company: Experian Information Solutions Inc.
State: OH

Complaint narrative:
Dear CFPB Representative, I am writing to file a formal dispute and regulatory complaint against TransUnion Credit Bureau for its failure to conduct a reasonable investigation following my notification of a credit reporting dispute under the Fair Credit Reporting Act ( FCRA ).

Specifically, TransUnion continues to report a delinquent payment status on an installment loan account associated with XXXX XXXX XXXX XXXX concerning my XXXX XXXX pickup truck. This reporting is factually and legally inaccurate.

The underlying installment loan/promissory note has been formally discharged by XXXX XXXX XXXXXXXX , effectively extinguishing the associated debt obligation. As such, any continued reporting of this account as open, delinquent, or with a current outstanding balance is materially false and constitutes a violation of the FCRA.

Please refer to Exhibit A ( XXXX ) a letter dated XXXX XXXX XXXX, issued by XXXX XXXX XXXX, which confirms both the discharge of the Installment Contract and the release of the lien on the vehicles title. No new installment agreement has been executed, endorsed, or authorized by me since the discharge. ( See also Exhibit C. ) Furthermore, as a result of the lien release, legal title to the vehicle has been lawfully transferred to a trust, and the vehicle is no longer encumbered by any interest or claim from XXXX XXXX XXXX.

Despite receiving clear documentation supporting the discharge and lien release, TransUnion has failed to update or correct the information and continues to report the account as delinquent and with a current balance due. This conduct constitutes : A violation of 15 U.S.C. 1681i failure to reasonably reinvestigate disputed information ; A violation of 15 U.S.C. 1681e ( b ) failure to maintain maximum possible accuracy in consumer reporting ; Civil liability under 15 U.S.C. 1681n ( willful noncompliance ) and 1681o ( negligent noncompliance ).

Additionally, to the extent this reporting involves or is communicated by a third-party debt collector, it further violate provisions of the Fair Debt Collection Practices Act ( FDCPA ), including but not limited to : 15 U.S.C. 1692e ( 8 ) reporting false credit information ; 15 U.S.C. 1692f engaging in unfair or unconscionable means to collect a debt.

FRAUDULENT REPORTING OF RE-INSTATEMENT In its response dated XXXXXXXX XXXX XXXX, to a formal complaint filed by XXXX XXXX XXXX, XXXX XXXX XXXX acknowledged that the original Installment Contract was discharged. Despite this admission, the account continues to be reported to all three major credit bureaus as currently delinquent.

XXXX XXXX XXXX  further asserted that it had reinstated the discharged Installment Contract associated with my XXXX XXXX XXXX pickup truck ( VIN : XXXX ), after previously releasing the lien on the vehicles title. I, XXXX XXXX XXXX, expressly deny ever granting consent to reinstate the discharged contract, originally dated XXXX XXXX XXXX, after full disclosure the discharge of the installment contract. ( See XXXX Exhibit B ) To date, XXXX XXXX XXXX has failed to produce any valid evidence of a newly executed, legally binding installment agreement bearing my signature. Therefore, any continued reporting of this discharged obligation as delinquent and having an outstanding balance constitutes a fraudulent misrepresentation. Furthermore, such reporting is particularly egregious given that the lien on the vehicle has already been formally released, thereby extinguishing the creditor 's legal interest in the collateral. ( See XXXX Exhibit C ) Once an installment contract ( such as a car loan, mortgage, or promissory note ) has been legally discharged and released, it can not be reinstated without the creation of a new enforceable contract that is : 1. Dated at the time of reinstatement 2. Signed ( endorsed ) by both parties 3. Supported by new consideration ( e.g., new terms, payments, or obligations ) Reinstating a discharged contract without a new written agreement is in fact unlawful, in violating both Ohio law and federal statutesincluding those under consumer protection laws.

________________________________________ Legal Principle : Finality of Discharge Once a debt is dischargedwhether by payment, release, settlement, accord and satisfaction, or bankruptcythe original contractual obligations are extinguished.

A reinstatement requires a new meeting of the minds, a new offer and acceptance, and fresh consideration.

________________________________________ Violations Under Law if Reinstated Without a New Agreement Under Ohio Revised Code Law Description Violations ORC 1303.40 ( UCC 3-604 ) Discharge by cancellation or renunciation : A party can release a negotiable instrument by writing or surrender. If the original contract was discharged and not re-signed, any re-reporting or enforcement is void and deceptive.

ORC 1345.02 ( Consumer Sales Practices Act CSPA ) Prohibits unfair, deceptive, or unconscionable acts in consumer transactions. Reinstating a discharged contract without full disclosure of a discharge is considered deceptive under Ohio consumer law.

ORC 2921.13 ( Falsification ) Making false statements in official or commercial filings. Reporting or acting on a void debt as if it were valid is a crime under Ohio law.

________________________________________ Under Federal Law ( U.S. Code ) Statute Provision Violation 15 U.S.C. 45 ( FTC Act ) Prohibits unfair or deceptive practices in commerce. Attempting to enforce or report a discharged contract as valid is deceptive and subject to FTC enforcement.

15 U.S.C. 1692e ( FDCPA ) Prohibits false, deceptive, or misleading representations in connection with debt collection. Reinstating a discharged obligation without proper disclosure is in violation this section when done by a debt collector.

15 U.S.C. 1681s-2 ( a ) ( FCRA ) Furnishers may not report information they know or should know is inaccurate. Reporting a discharged contract as active/delinquent is a false credit report.

18 U.S.C. 1341 / 1343 ( Mail/Wire Fraud ) Prohibits schemes to defraud using mail or electronic communication. Reinstating a void contract to collect or report triggers criminal liability when done constituting fraud committed by the creditor.

________________________________________ Summary of Legal Requirements for Reinstatement Requirement Legal Basis New contract must be created Contract law ( state + UCC ) Must be dated at the time of execution Statute of Frauds, UCC 3-401 Must be signed by the consumer UCC 3-401 ( a ) Signature required for enforcement Must include new consideration Basic contract law principle Must be disclosed fully Truth in Lending Act ( TILA ), Ohio CSPA ________________________________________ Legal Consequences of Reinstating a Discharged Contract Without Consent Civil penalties under the Fair Credit Reporting Act ( FCRA ) and Fair Debt Collection Practices Act ( FDCPA ) Criminal liability under fraud statutes Lawsuits under Ohio 's Consumer Sales Practices Act Voidability of any enforcement action ( e.g., repossession, garnishment, negative credit reporting ) ________________________________________ A Discharged Loan Can Not Be Reinstated A discharged installment contract can not be lawfully reinstated without creating a new agreement, signed and dated, with full disclosure. Attempting to enforce or report the original contract without this is in violation of the following : Ohio Revised Code 1303.40, 1345.02 15 U.S.C. 1681s-2, 1692e, 45 ( a ) 18 U.S.C. 1341, 1343 ( if fraudulently reinstated ) Such conduct exposes the creditor or furnisher to civil, regulatory, or criminal liability.

________________________________________ Statutory Violations Involved Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq.

1. 1681s-2 ( a ) ( 1 ) ( A ) Duty to Provide Accurate Information Entities are prohibited from furnishing information known to be inaccurate. Continuing to report a discharged debt as delinquent knowingly violates this section.

2. 1681s-2 ( b ) Duties After Receiving Dispute Notice After receiving a dispute ( either directly or via a consumer reporting agency ), the furnisher must : Conduct a reasonable investigation ; Review relevant information ; Report results to the CRA ; Correct or delete inaccurate information ; Cease reporting if the information is unverifiable.

Failure to do so, as TransUnion has in this case, constitutes a direct violation.

3. 1681n and 1681o Civil Liability TransUnion may be held liable for willful ( 1681n ) or negligent ( 1681o ) noncompliance, including damages, statutory penalties, and attorneys fees.

________________________________________ Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692 et seq. ( if a collector is involved ) 1. 1692e ( 8 ) False Credit Reporting Knowingly reporting a debt that is no longer valid as delinquent, or failing to mark it as disputed, constitutes false credit reporting.

2. 1692e Misleading Representations Any false or misleading statement in connection with debt collectionsuch as reporting a discharged debt as collectibleviolates this section.

3. 1692f Unfair Collection Practices Using unfair or unconscionable means, such as leveraging an invalid debt to affect my credit, is strictly prohibited.

________________________________________ Additional Legal Violations : Securities Fraud If this installment contract or its cash flows were securitized or incorporated into any form of financial instrument ( e.g., XXXX XXXX  ), then this misrepresentation constitute securities fraud : 1. SEC Rule 10b-5 / Exchange Act of 1934 False reporting of the status of a negotiable instrument ( loan ) as active/delinquent when it has been discharged constitutes material misstatement if relied upon in a security sale.

2. Sarbanes-Oxley Act For publicly traded institutions, such false reporting amounts to fraudulent disclosures in violation of corporate reporting requirements.

3. Wire Fraud / Mail Fraud ( 18 U.S.C. 1341, 1343 ) When TransUnion or Ford Motor Credit transmitted these false reports electronically or via mail, this constitutes federal fraud.

Summary of Harms and Requested Relief Due to TransUnions reckless disregard for statutory obligations and willful misreporting, I am requesting the following : 1. Compensation in the amount of {$150000.00} to be donated to the XXXX Rehab Community Funding Foundation at XXXX.

2. Update inaccurate information to Paid as Agreed and remove all reported late payments from my credit profile to Paid As Agreed ; 3. A formal investigation into TransUnion 's and XXXX XXXX XXXX conduct ; 4. File a complaint for securities-related violation to the SEC and FTC, as appropriate ; 5. Remedial Liability from TransUnion for damages and any statutory compensation for harm suffered under 15 U.S.C. 1681n and 1681o in the amount of {$150000.00} to be donated to the XXXX Rehab Community Funding Foundation at XXXX

6. Immediate correction of XXXX XXXX XXXX account to Paid As Agreed ; 7. Remedial Liability from XXXX XXXX XXXX for damages and any statutory compensation for harm suffered under 15 U.S.C. 1681n and 1681o in the amount of {$150000.00} to be donated to the XXXX  Rehab Community Funding Foundation at XXXX.

8. Immediate correction XXXX XXXX XXXX account to Closed ; 9. Written confirmation of correction and sanctions levied against TransUnion and XXXX.

Attached are the following : Proof of acknowledgment of discharge and release of lien by XXXX XXXX XXXX ; Copy of unencumbered Title to XXXX vin number XXXX Proof of lien remove by the XXXX  Bureau of Motor Vehicles.

I respectfully request that the Consumer Financial Protection Bureau ( CFPB ) initiate an immediate and thorough investigation into TransUnions continued reporting of inaccurate information, and compel the bureau to permanently correct or remove the erroneous trade line from my credit file. TransUnions ongoing failure to rectify this report despite receiving clear documentation establishing the inaccuracyhas caused significant harm to my creditworthiness and constitutes a violation of my rights under federal law.

Additionally, I urge the CFPB to take appropriate regulatory and enforcement action to uphold federal consumer protection statutes. This includes holding both TransUnion and XXXX XXXX XXXX accountable for their respective roles in these violations. I further request that the CFPB pursue all available remedies under law, including the imposition of sanctions and, if applicable, initiating legal proceedings on behalf of impacted consumers such as myself to address the unlawful practices detailed in this complaint.

Sincerely, XXXX XXXX XXXX

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