Consumer complaint received 2025-02-11 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: AL

Complaint narrative:
XXXX XXXX XXXX Protection Line of Credit ( LOC ) Account This account is a line of credit ( up to {$150.00} ) connected to my checking account, designed as overdraft protection. XXXX XXXX  promoted this service last year, and I opted in. 

In XX/XX/XXXX, I accidentally over-drafted my account by {$5.00}, which was automatically charged to the XXXX Protection Account. I was never notified that I had overdrawn my account or that I owed XXXX  {$5.00}. The first indication of any issue came when I received an email from Experian informing me that my credit score had dropped XXXX points. 

I immediately contacted XXXX XXXX, identified the issue, and paid the {$5.00}. I formally requested that XXXX  delete the negative entry from my credit report and submitted the necessary documentation during a phone call with their representative. I followed up weekly for a month and was eventually informed that my request was denied because XXXX  claimed they sent monthly paper statements. However, a statement is not a bill. I never received a standard notification of a past due bill or any warning that non-payment would be reported to the credit bureau. 

I reluctantly accepted the drop in my credit score. However, later that year, my account was over-drafted by close to {$150.00}. This time, I was aware of the overdraft and made sure to set up payments above the minimum to avoid issues. Despite this, on XX/XX/XXXX, I received another notification from Experian that my XXXX  score had decreased. XXXX  had again reported a late payment, this time for {$1.00}, causing an additional XXXX drop in my credit score. 

During the first incident, I was living in XXXX XXXX  and couldnt visit a XXXX  branch. For this second occurrence, I had moved back to XXXX, XXXX, and went directly to the nearest branch. 

At the branch, I was told that I had not set up " auto-pay '' but instead set up an " auto-transfer, '' and that the transfer date changed monthly. I was informed that auto-pay can not be set up online and must be done in person at a branch, a policy that was never clearly communicated. The XXXX  website is deceptively unclear, as it prompts you to set up payments in a way that mimics standard credit card payment portals, offering no distinction between auto-transfer and auto-pay or instructions for proper setup. 

As a XXXX XXXX, I am not a novice to debt management. While medical school and training have impacted my finances, I have numerous lines of credit with auto-pay set up and never missed a payment. XXXX  confusing and non-transparent system is the only reason these overdrafts were reported. 

I again formally requested that XXXX  delete the negative mark from my credit report and submitted the necessary documentation at the branch. 

Additional Issues : I discovered I could not view any of my previous statements online, the webpage was blank with no way to access statements. At the branch, I was informed that I needed to download the XXXX  App and sign up for online statements via the app. I rarely use the app due to its simplified format and had no reason to believe statements were hidden there. Furthermore, my debit and savings accounts were already enrolled in online statements, and I never had issues accessing those. I am not aware of any other bank that withholds online statements unless the borrower manually enrolls in paperless banking for each individual account. This is frustrating, non-standard, and deceptive. 

The same day, I paid off the entire balance and requested the line of credit be officially closed. I called the same branch and was informed the payment was pending and that I would be notified by Monday, XX/XX/XXXX when the account was closed. I received no follow-up and checked the account myself, only to find that while the payment posted, an additional charge of {$1.00} had been applied. When I called the branch again, the banker could not identify where the charge came from and was unable to close the account. Despite paying off the balance in full, my account remains open. 

Summary of Complaints : Failure to Provide Reasonable Access to Statements Online : XXXX  failed to provide online access to statements for the Protection Account, which is standard practice at other financial institutions. 

Unclear and Deceptive Auto-Pay Policies : The distinction between auto-pay and auto-transfer was not clearly communicated, and the inability to set up auto-pay online is non-transparent and deceptive. 

Deviation from Standard Notification Practices : XXXX  failed to notify me of overdue payments or overdrafts in a timely, standard manner. Most institutions provide grace periods and multiple notifications before reporting to credit bureaus. 

Premature Reporting Without Exhausting Resolution Options : XXXX  reported my account to credit bureaus without offering an opportunity to resolve the issues. The standard practice is to notify the account holder before reporting minor overdrafts. 

Failure to Provide Credit Reporting Transparency : Furthermore, I would be completely unaware of the impact to my credit score if I were not enrolled with XXXX  XXXX, as they are the only company that informed me of the late payments. XXXX  failed to provide any direct communication regarding the reporting of these late payments to the credit bureaus. 

Lack of Accessible Claims Process : The management of these claims is handled by a separate department within XXXX  that can not be contacted directly by account holders or even branch employees. There is no phone number or direct line of communication available. Additionally, claims can only be submitted by branch bankers, not by the account holder themselves, further limiting transparency and accountability. 

Using Paper Statements as an Excuse to Deny Disputes : Denying my request to remove the negative mark by claiming they sent paper statements is a weak justification. XXXX  is hiding behind a technicality, knowing that paper statements are not the primary method of communication in modern banking. 

Broader Impact : This behavior disproportionately affects individuals in lower income brackets and leads to long-term damage to credit scores. These marks stay on credit reports for 5-10 years and create significant barriers to obtaining loans with fair interest rates, consolidating debt, buying cars, or securing housing in safe neighborhoods. XXXX  ' practices are economically harmful, deceptive, and inconsistent with industry standards. 

Lastly : I respectfully request that this complaint be thoroughly reviewed and that XXXX XXXX practices be investigated for unfair, deceptive, and non-transparent policies. Their failure to provide reasonable access to account information and proper notification has resulted in unjust damage to my credit score.

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