Consumer complaint received 2025-10-27 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: EQUIFAX, INC.
State: TX

Complaint narrative:
XX/XX/XXXXXXXX XXXX XXXX XXXX XXXX XXXXXXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXXXXXX Equifax Information Services LLC XXXX. XXXX XXXX XXXXXXXX XXXX XXXX RE : Formal Dispute and Demand for Immediate Deletion of Inaccurate Information Reported by XXXX XXXX Federal Student Loan Servicer Under Investigation for Fraud, Misconduct, and Failure to Implement Department of Education-Ordered Loan Discharges.

To Whom It May Concern : I am writing to formally dispute inaccurate, fraudulent, and legally non-compliant information appearing on my consumer credit report ( s ) as furnished by the Higher Education Loan Authority of the State of XXXX ( XXXX ). This letter serves as my official notice under the Fair Credit Reporting Act ( FCRA ), 15 U.S.C. 1681 et seq., demanding the immediate investigation and permanent deletion of all disputed items reported by XXXX, a loan servicer currently under investigation by multiple state attorneys general, the Consumer Financial Protection Bureau ( CFPB ), and facing multiple federal lawsuits for systematic fraud, misconduct, and failure to implement U.S. Department of Education-ordered loan discharges. 

CRITICAL NOTICE : XXXX FRAUD AND DEPARTMENT OF EDUCATION DISCHARGE ORDERS As a borrower directly harmed by XXXX 's documented fraud and systematic misconduct, and pursuant to U.S. Department of Education discharge determinations, I am entitled to be relieved of any further obligation to repay these student loans. XXXX has systematically failed to implement loan discharges ordered by the Department of Education, continued to demand payment on discharged loans, and continued reporting these discharged debts to credit reporting agencies as current obligations. This constitutes fraud, willful FCRA violations, and actionable misconduct causing severe financial harm to millions of student loan borrowers, including myself. 
XXXX XXXX 's Documented Fraud, Systematic Misconduct, and Ongoing Federal Investigations XXXX is currently under investigation by multiple federal and state authorities for widespread fraud and misconduct that has financially harmed millions of student loan borrowers. The following documented evidence establishes XXXX 's pattern of fraudulent and deceptive practices : A. Active Federal Lawsuits and Legal Actions : XXXX. XXXX XXXX XXXX XXXX v. XXXX ( XX/XX/XXXX ) : Filed by the AFT, represented by the Student Borrower Protection Center, National Consumer Law Center, and XXXX XXXX XXXX, this groundbreaking federal lawsuit alleges that XXXX illegally overcharged borrowers on monthly bills, failed to timely process critical paperwork, actively misled borrowers about repayment options and loan forgiveness programs, and implemented a systematic 'call deflection scheme ' that made it impossible for XXXX XXXX borrowers to obtain assistance. The lawsuit exposes XXXX to billions of dollars in potential liability. 
XXXX. XXXX v. XXXX ( XX/XX/XXXX ) : XXXX  student borrowers filed federal lawsuit alleging XXXX failed to implement Department of Education-ordered student loan discharges, continued demanding payment on discharged loans, and continued reporting discharged debts to credit agencies as current obligations. The U.S. District Court for the Northern District of XXXX  denied XXXX 's attempts to dismiss the case twice ( XX/XX/XXXX and XX/XX/XXXX ), with the court stating that 'it would be an affront to the dignity of XXXX  if an entity like XXXX were permitted to avoid suit in XXXX  based on alleged commercial misconduct towards XXXX residents. ' This case directly parallels my situation as an affected borrower whose loans should have been discharged. 
XXXX Multi-State Attorney General Investigations and Federal Enforcement : Multiple State Investigations ( XXXX ) : Multiple state attorneys general initiated confidential investigations into XXXX beginning in late XXXX, focusing on XXXX 's errors in calculating monthly payments, billing customers incorrectly, failing to process paperwork, and other systematic misconduct that turned costly for borrowers. 
Congressional Investigations : U.S. Senators XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, XXXX XXXX, and XXXX XXXX have led multiple Senate investigations and hearings exposing XXXX 's systematic failures. In XX/XX/XXXX, Senate investigators revealed that XXXX 's failure to provide advance notice of loan transfers contributed to nearly XXXX million credit reporting errors. In XX/XX/XXXX, Senator XXXX led a hearing specifically on XXXX 's failures during return to repayment and mismanagement of the Public Service Loan Forgiveness program. 
Department of Education Enforcement Actions : In XX/XX/XXXX, the Department of Education withheld {$7.00} million in payment to XXXX as punishment for failing to send bills to XXXX XXXX borrowers, causing XXXX borrowers to miss payments. In XX/XX/XXXX, the Department stopped awarding XXXX new accounts and threatened contract termination due to XXXX 's failures to inform the agency about massive backlogs of applications for income-driven repayment plans and continued poor performance. 
CFPB and Federal Regulatory Oversight : In XX/XX/XXXX, the Student Borrower Protection Center and AFT sent formal complaints to the Consumer Financial Protection Bureau ( CFPB ), Federal Deposit Insurance Corporation ( FDIC ), and Office of the Comptroller of the Currency ( OCC ), warning federal financial regulators about XXXX 's potentially unlawful practices, including forcing borrowers to waive their legal rights. 
XXXX Specific Documented Misconduct Allegations- Quantified Data : XXXX million borrowers did not receive monthly bills, resulting in XXXX borrowers missing payments through no fault of their own ; XXXX borrowers were illegally overcharged for loan payments because XXXX used incorrect calculation guidelines ; XXXX million total borrowers affected by XXXX 's systematic failures, with documented evidence showing XXXX in XXXX XXXX customers experienced servicing failures ; Nearly XXXX million credit reporting errors caused by XXXX 's failure to provide advance notice of loan transfers to credit reporting agencies ; Systematic 'call deflection scheme ' : XXXX deliberately directed millions of borrowers away from staffed call centers toward websites and 'self-help ' options that were often inoperative or unable to resolve critical issues, despite receiving over {$1.00} billion from the Department of Education since XXXX specifically to staff call centers and provide borrower assistance ; Illegal deduction of payments from borrowers ' bank accounts without consent ; Misinforming borrowers about paperwork deadlines for affordable repayment plans and loan forgiveness programs ; Failure to process Department of Education-ordered loan discharges : XXXX failed to implement loan discharges for students who attended XXXX predatory for-profit institutions ( XXXX XXXXXXXX XXXX XXXXXXXX, XXXX XXXX XXXXXXXX XXXX XXXX, XXXX XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX, continuing to demand payment and report these discharged debts to credit bureaus ; Worst performance scores : XXXX currently holds the worst customer satisfaction and performance scores among all federal student loan servicers. 
XXXX. Department of Education Loan Discharge Determination and Relief from Repayment Obligation As an affected borrower harmed by XXXX 's documented fraud and systematic misconduct, I am entitled to relief from any further obligation to repay these student loans pursuant to Department of Education discharge determinations and federal consumer protection law. The Department of Education has issued group discharge orders for borrowers who attended predatory for-profit institutions that engaged in widespread fraud and misconduct. However, XXXX has systematically failed to implement these discharges, as evidenced by the ongoing federal litigation in XXXX v. XXXX. 
Between XX/XX/XXXX and XX/XX/XXXX, the Department of Education announced group discharges for former students from XXXX predatory for-profit institutions after finding these schools engaged in rampant misconduct, including 'financial exploitation of students ' and 'widespread misrepresentations. ' The Department explicitly notified affected borrowers that they had been 'released from any further obligation to repay ' their loans. Despite these clear discharge orders, XXXX has : Failed to process the Department of Education-ordered discharges ; Failed to issue authorized refunds to discharged borrowers ; Continued reporting discharged debts to credit reporting agencies as current obligations ; Continued illegally demanding payments from borrowers whose loans have been discharged by federal authority . 
This conduct constitutes willful fraud and knowing violations of the Fair Credit Reporting Act. Any continued reporting of these discharged debts is per se inaccurate and must be immediately and permanently deleted from my credit file. 
XXXX. Inaccurate Account Information and Personal Data Reported by XXXX The information reported by XXXX contains multiple material inaccuracies that have caused substantial and undue hardship, severe financial harm, and damage to my creditworthiness. Given XXXX 's documented pattern of systematic misconduct affecting millions of borrowers, any information furnished by XXXX must be presumed unreliable and inaccurate. Specifically : Account Balance and Payment History Inaccuracies : The account balances, payment histories, and status information reported by XXXX are demonstrably incorrect. XXXX has admitted to systematically overcharging XXXX borrowers and sending inaccurate bills. Given XXXX 's documented pattern of calculation errors and fraudulent billing practices, all balance information furnished by XXXX is inherently unreliable and must be deleted. 
Personal Information Errors : XXXX has furnished incorrect personal identifying information, including errors in names, addresses, Social Security numbers, dates of birth, and employment information. The Senate investigation revealed nearly XXXX million credit reporting errors caused by XXXX 's failures. Such widespread inaccuracies demonstrate XXXX 's complete disregard for data accuracy requirements under FCRA 1681e ( b ). 
Credit Reporting During Discharge Period : XXXX 's continued reporting of loan obligations during periods when the Department of Education had ordered discharges constitutes willful and knowing false reporting under the FCRA. This fraudulent reporting has caused severe harm to my credit profile and ability to access credit, employment, and housing. 
IV. Undue Hardship, Severe Financial Harm, and Quantified Damages XXXX 's fraudulent and inaccurate reporting has caused me severe and quantifiable undue hardship, including but not limited to : Catastrophic reduction in my credit score due to fraudulent reporting of discharged or inaccurate debt obligations ; Denial of credit applications, or approval only at usurious interest rates, resulting in thousands of dollars in additional costs ; Inability to obtain housing due to fraudulent negative information on credit reports relied upon by landlords ; Adverse employment decisions, as employers increasingly review credit reports during hiring processes ; Increased insurance premiums and denial of favorable insurance rates ; Severe emotional distress, XXXX, XXXX, and mental anguish resulting from XXXX 's fraudulent debt collection attempts on discharged loans ; Hundreds of hours spent attempting to contact XXXX through their deliberately obstructive 'call deflection ' system ; Loss of financial opportunities and economic advancement due to artificially depressed creditworthiness ; Reputational damage and harm to personal and professional relationships resulting from fraudulent portrayal of my financial status. 
V. Violations of Seven-Year Reporting Rule and Unauthorized Data Sales Pursuant to 15 U.S.C. 1681c ( a ) ( 4 ), consumer reporting agencies are prohibited from reporting accounts placed for collection or charged off that antedate the report by more than XXXX years. XXXX and the credit reporting agencies have violated this statutory mandate by reporting obsolete information beyond the permissible reporting period. 
Additionally, XXXX and the credit bureaus have been selling my inaccurate personal information to third parties, including marketing companies, insurance providers, employment screening services, and other financial institutions, without legitimate permissible purposes as required by FCRA 1681b. This unauthorized sale of inaccurate information for commercial benefit constitutes willful FCRA violations and creates additional liability for all parties involved. 
VI. Applicable Legal Standards and FCRA Requirements The Fair Credit Reporting Act imposes strict obligations on both furnishers of information and consumer reporting agencies. Under 15 U.S.C. 1681s-2 ( a ), MOHELA is required to provide accurate information and conduct reasonable investigations when notified of disputes. Under 15 U.S.C. 1681i, you are required to conduct reasonable reinvestigation within XXXX ( XXXX ) days. 
Given XXXX 's documented pattern of fraud and systematic misconduct affecting millions of borrowers, any information furnished by XXXX must be treated as presumptively unreliable and inaccurate. The ongoing federal lawsuits, multi-state investigations, Department of Education enforcement actions, and CFPB oversight demonstrate that XXXX can not be relied upon to provide accurate information. Recent CFPB guidance ( Bulletin XXXX ) requires that investigations can not be superficial or automated and must include independent verification beyond mere confirmation with the furnisher. 
XXXX. IMMEDIATE DEMANDS FOR DELETION AND REMEDIAL ACTION In light of XXXX 's documented fraud, systematic misconduct, failure to implement Department of Education-ordered loan discharges, and ongoing federal investigations, I demand that you immediately : XXXX. PERMANENTLY DELETE all information reported by XXXX from my credit file. Given XXXX 's documented pattern of fraud affecting XXXX million borrowers and ongoing federal litigation, no information from XXXX can be considered reliable or accurate ; XXXX. CEASE AND DESIST all reporting of any MOHELA-furnished information to third parties immediately. Continued reporting of information from a servicer under federal investigation for fraud constitutes willful noncompliance under FCRA 1681n ; XXXX. CEASE AND DESIST from selling, transferring, or providing my personal information to any third parties, including marketing companies, data brokers, insurance companies, employers, or financial institutions ; XXXX. ACKNOWLEDGE that as a borrower affected by Department of Education-ordered loan discharges, any continued reporting of discharged loan obligations constitutes fraud and per se FCRA violations ; XXXX. CONDUCT a thorough investigation recognizing that XXXX is an unreliable furnisher currently under multi-state investigation and federal litigation for systematic fraud ; XXXX. PROVIDE written confirmation of all deletions within the statutory thirty ( XXXX ) day period ; XXXX. FURNISH me with an updated credit report reflecting all deletions, at no charge, as required under 15 U.S.C. 1681j ( a ) ( 1 ) ( B ) ; XXXX. XXXX updated reports to all parties who received reports in the past 6 months ( employment ) or 2 years ( credit ) ; XXXX. NOTIFY all previous data purchasers of the deletion of all MOHELA-reported information ; XXXX. CONFIRM in writing that you will no longer accept or report any information furnished by XXXX given its documented unreliability and ongoing fraud investigations. 
XXXX. Statutory Compliance Timeline Day XXXX : Date you receive this letter Day XXXX : Must forward dispute to XXXX ( FCRA 1681i ( a ) ( 2 ) ) Day XXXX : Investigation must be completed and all XXXX information deleted Day XXXX : Written results and updated credit reports must be provided XXXX. Legal Consequences of Non-Compliance and Preservation of Rights I am preserving all legal rights and remedies available under federal and state law, including but not limited to : FCRA Statutory Damages : 1681n provides actual damages plus punitive damages of $ XXXX {$1000.00} per violation for willful noncompliance. Continued reporting of information from a servicer under investigation for fraud constitutes willful violations ; Attorney Fees and Costs : 1681o provides for recovery of attorney fees and costs ; Regulatory Complaints : Filing complaints with CFPB, FTC, Department of Education, and state attorneys general already investigating XXXX ; Class Action Participation : Joining existing federal class actions against XXXX or initiating new actions for systematic FCRA violations ; State Consumer Protection Claims : Violations under state consumer protection acts, privacy laws, and unfair/deceptive practices statutes ; Federal Fraud Claims : Claims related to fraudulent reporting of discharged debts and knowing misrepresentations. 
Be advised that federal courts have already ruled twice against XXXX 's attempts to dismiss borrower lawsuits, and multiple state attorneys general are actively investigating XXXX 's misconduct. Your failure to immediately delete all MOHELA-furnished information will be deemed willful noncompliance and will be pursued through all available legal channels. 
X. Supporting Evidence and Documentation of XXXX Fraud This dispute is supported by extensive documented evidence of XXXX 's fraud and misconduct, including : Federal court records from AFT v. XXXX ( XXXX District Court, XX/XX/XXXX ) ; Federal court records from XXXX XXXX XXXX ( XXXX XXXX, XX/XX/XXXX ), including XXXX court orders denying XXXX 's dismissal attempts ; XXXX XXXX Papers ' investigation by AFT and Student Borrower Protection Center XXXX XX/XX/XXXX ) ; Senate investigation reports by Senators XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX and XXXX XXXX XXXX ) ; Department of Education enforcement actions and payment withholdings ( XX/XX/XXXX, XX/XX/XXXX ) ; CFPB, FDIC, and OCC regulatory complaints filed by SBPC and AFT XXXX XX/XX/XXXX ) ; Documentation of multi-state attorney general investigations ( XXXX ). 
This letter constitutes my formal written dispute under 15 U.S.C. 1681i ( a ) ( 1 ) ( A ). Given XXXX 's documented pattern of fraud affecting millions of borrowers, failure to implement Department of Education-ordered discharges, and ongoing federal investigations and litigation, I expect immediate deletion of all XXXX-furnished information. This dispute is made in good faith based on extensive documented evidence of XXXX 's systematic misconduct. 
I expect your full cooperation and compliance with federal law. Please acknowledge receipt of this dispute and begin your investigation immediately. 

Respectfully submitted, XXXX XXXX

Company response to consumer: Closed with explanation