Consumer complaint received 2025-05-08 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: NE

Complaint narrative:
Subject : Pre-Arbitration Dispute Notice Pursuant to Experians Arbitration Clause To Experian Consumer Relations, This letter serves as a formal Pre-Arbitration Dispute Notice pursuant to the arbitration clause in Experians Terms of Service. I am providing this notice to resolve this dispute before initiating arbitration proceedings. 
Summary of Dispute and Violations Experian has continuously furnished inaccurate and legally improper information on my credit report, despite multiple disputes. I have submitted repeated disputes to Experian via their website and the Consumer Financial Protection Bureau ( CFPB ), yet they have consistently failed to conduct proper investigations, demonstrating willful noncompliance and negligence as outlined in the ongoing CFPB lawsuit against Experian. These actions have caused me substantial financial harm, and Experian must be held accountable. 
These violations involve the following key issues : 1. Experians failure to properly credit charge-offs and misrepresentation of these as outstanding debt, despite their legal status as settled obligations. 
Page 1 of 7 EXPERIAN PRE-ARBITRATION DISPUTE NOTICE 2. Failure to acknowledge and properly report credit balances, which legally belong to the consumer under 12 CFR 1026.11. 
3. Failure to conduct proper investigations under FCRA requirements, despite XXXX  correcting the same errors.

4. Denial of credit opportunities due to Experians misreporting, constituting unlawful adverse actions.

5. Failure to remove unauthorized hard and soft inquiries violating federal privacy laws.

6. Experians systemic failure to conduct reasonable investigations as outlined in the CFPB lawsuit against Experian.

1. Misrepresentation of Charge-Offs as Outstanding Debt Under IRS regulations ( 26 CFR 1.6050P-1 ), charge-offs meeting specific conditions are classified as canceled debt and must be reported as taxable income. Once a debt has been reported as income, it is legally extinguished and should be updated to reflect a {$0.00} balance and " Paid in Full '' status.

26 U.S. Code 61 ( a ) ( 11 ) explicitly defines income to include " income from discharge of indebtedness, '' meaning any charge-off reported to the IRS as income can not simultaneously be reported as outstanding debt.

FCRA 1681s-2 ( a ) ( 1 ) ( A ) prohibits furnishers from reporting inaccurate information.

Experian continues to report these charge-offs as unpaid debts, misleading potential creditors and violating federal law. 
I am not requesting deletion of these accounts but rather correct classification to " Paid in Full '' with a {$0.00} balance to align with IRS regulations and the FCRA 's accuracy requirements. 
Page 2 of 7 EXPERIAN PRE-ARBITRATION DISPUTE NOTICE 2. Experians Failure to Acknowledge Credit Balances in Violation of 12 CFR 1026.11 12 CFR 1026.11 ( a ) specifies that when a credit balance over {$1.00} is created on a credit account through amounts otherwise owed to or held for the benefit of the consumer, the creditor shall refund any part of the remaining credit balance within seven days from receipt of a written request from the consumer.

My credit report reflects credit balances, yet Experian continues to misreport these amounts as negative obligations rather than amounts owed to me. 
Credit balances derive from an institution 's Accounts Payable ( owed to the consumer ), and not from the consumers liability, meaning Experian is unlawfully misrepresenting financial relationships.

The responsibility for refunding these balances lies with the financial institutions ( creditors ), not Experian. However, Experian has an obligation to accurately report these balances. 
By failing to correctly classify these balances and ensure accurate reporting, Experian is in direct violation of federal law. 
3. Failure to Properly Investigate Despite XXXX XXXX Corrections FCRA 1681e ( b ) requires credit bureaus to ensure " maximum possible accuracy. '' XXXX  investigated and corrected these same charge-offs and inquiries, yet Experian refuses to follow suit, causing inconsistent and misleading reporting.

This discrepancy across credit bureaus misrepresents my creditworthiness and has caused me financial harm. 
Page 3 of 7 EXPERIAN PRE-ARBITRATION DISPUTE NOTICE 4. Unlawful Adverse Actions from Misreporting Because of Experians incorrect reporting, I have suffered : Denial of a mortgage loan due to artificially lowered credit scores.

Denial of a personal credit loan due to improperly classified charge-offs. 
Denial of a credit card, further restricting my financial access. 
Under FCRA 1681m ( a ), these denials constitute adverse actions directly caused by Experian 's violations.

5. Failure to Remove Unauthorized Inquiries in Violation of Federal Privacy Laws I dispute multiple unauthorized hard and soft inquiries on my credit report that were placed without my consent : 15 U.S.C. 1681b ( c ) ( 3 ) ( FCRA ) prohibits consumer reports from being accessed without explicit authorization.

15 U.S.C. 1681s-2 ( a ) ( 1 ) ( A ) : Entities reporting inquiries must ensure accuracy, yet financial institutions have placed inquiries on my report without proof of authorization.

15 U.S.C. 6802 ( b ) ( 1 ) ( C ) ( Gramm-Leach-Bliley Act ) : I was never provided my legally required opt-out notice regarding information sharing.

12 CFR 1016.7 grants me the right to opt out of certain financial institution inquiries.

Formal Opt-Out Notice for Inquiries : I am not opting out of Experian, XXXX, or XXXX  entirely , as I wish to maintain a credit score. 
I am formally opting out of the financial institutions furnishing inquiries on my credit report. 
Page 4 of 7 EXPERIAN PRE-ARBITRATION DISPUTE NOTICE Any future inquiries from non-affiliated third parties must cease immediately unless I provide explicit written authorization.

6. Further Violations Highlighted in the CFPB Lawsuit Additionally, Experians systemic misconduct in consumer dispute investigations has been well-documented in the CFPB lawsuit ( CFPB v. Experian, Case No. XXXX ), including : Failure to forward relevant dispute information to furnishers ( Complaint XXXX ). 
Experian ignored my IRS Form 1099-C evidence, further demonstrating its failure to conduct a reasonable reinvestigation ( FCRA 1681i ( a ) ( 1 ) ( A ) ).

Uncritical reliance on furnishers responses without verification ( Complaint XXXX ). Experian has dismissed my disputes despite clear contradictions in its records. 
Misleading and inadequate dispute results ( Complaint XXXX ). I have received vague, contradictory responses such as " updated '' or " processed, '' with no clear resolution. 
Relief Demanded to Avoid Arbitration To resolve this dispute without arbitration, I demand the following corrective actions : 1. Immediate update of all charge-off accounts to " Paid in Full '' with a {$0.00} balance, in accordance with IRS regulations ( 26 CFR 1.6050P-1 ) and FCRA 1681s-2 ( a ) ( 1 ) ( A ).

2. Ensure Experians reporting aligns with XXXX, which has already corrected these accounts ( FCRA 1681e ( b ) ).

3. Immediate removal of all unauthorized hard and soft inquiries, unless Experian provides verifiable proof of my written authorization for each.

4. A written confirmation that I have been opted out from the entities furnishing inquiries, ensuring no future inquiries are reported without explicit consent.

Page 5 of 7 EXPERIAN PRE-ARBITRATION DISPUTE NOTICE 5. A proper reinvestigation of my disputes, ensuring that all relevant documentation, including IRS Form 1099-C, is provided to furnishers.

6. A clear and accurate written dispute resolution statement, explicitly detailing the specific changes made to my credit report.

Monetary Relief for Harm and Suffering In addition to the above corrective actions, I demand full monetary compensation for the significant financial harm, emotional distress, and inconvenience I have endured as a result of Experians failures. These actions have not only impacted my creditworthiness but have caused a prolonged period of stress and uncertainty, jeopardizing my ability to make important financial decisions, including but not limited to the denial of loans, higher interest rates, and a diminished quality of life due to Experians negligence and misreporting. The severity of these violations warrants compensation in the amount of {$20000.00} for the financial and emotional damages sustained.

I request that this amount be paid via check mailed to the address listed above. Please ensure the check is issued promptly, and I expect a formal written agreement that outlines this payment arrangement should it be necessary to proceed with further steps. 
Attachments Included with This Notice I have attached the following documents as evidence supporting my claims : 1. IRS Wage & Income Transcript XXXX 2. Experian credit report showing the disputed charge-offs and unauthorized inquiries. 
Page 6 of 7 EXPERIAN PRE-ARBITRATION DISPUTE NOTICE Deadline for Response Before Arbitration Pursuant to Experian 's arbitration agreement, I am providing thirty ( 30 ) days from the date of this notice for Experian to correct these issues and respond in writing with confirmation of the actions taken.

If Experian fails to resolve this dispute, I will initiate arbitration per your agreement and seek statutory damages, punitive damages, and all available legal remedies. 
Please direct all correspondence regarding this matter to my contact information listed above. 
Sincerely, XXXX XXXX XXXX / Agent for : XXXX XXXX XXXX - Principal WITHOUT PREJUDICE PER U.C.C. 1-308. ALL RIGHTS RESERVED. 
NOTICE TO AGENT IS NOTICE TO PRINCIPAL, NOTICE TO PRINCIPAL IS NO TICE TO AGENT.

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