Consumer complaint received 2025-06-25 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: TX

Complaint narrative:
This is my third formal notice regarding the reporting of an account by XXXX XXXX XXXX XXXX, which remains on my credit report despite being in violation of state and federal laws. As stated in my prior correspondence, XXXX XXXX XXXX XXXX is not licensed to collect debts in Texas, as required under Texas Finance Code 392.001 and 392.301. A search of the Texas Secretary of States debt collector registry confirms this. Reporting a debt from an unlicensed entity is unlawful, and any verification of such an account is legally invalid.I have independently verified that the company is not listed as a licensed debt collector with the Texas Secretary of State.

Under the Fair Credit Reporting Act ( 15 U.S.C. 1681i ), XXXXXXXX  is legally obligated to conduct a reasonable investigation of disputed accounts. You claim the account was verified as reported, yet no documentation has been provided to substantiate that claim. Verifying data from a source that is not legally authorized to report or collect the debt in Texas does not meet the standard of a reasonable investigation. This makes the reported information unverifiable and legally invalid, and continuing to report it violates FCRA, the Fair Debt Collection Practices Act ( 15 U.S.C. 1692e ), and Texas law and must be deleted immediately. 

This account is also being reported under a name that does not match my current legal identification of any form. This variation contributes to the misreporting and further demonstrates that the account is not fully verifiable. Maintaining inaccurate personal identifiers in conjunction with unverifiable accounts violates your duty under FCRA 1681e ( b ) to assure maximum possible accuracy in consumer reporting.

Furthermore, under 26 U.S. Code 6050P, if the alleged debt has been canceled or discharged, a Form 1099-C should have been issued, and continued reporting or collection attempts would be unlawful. In addition, per 15 U.S. Code 1692j, furnishing deceptive forms or communications that falsely imply a third partys authority to collect a debt is prohibited. Since XXXX XXXX XXXX XXXX is not licensed to collect debts in the State of Texas and has not provided any documentation verifying the debts validity, this account is both unverifiable and illegally reported. Accordingly, pursuant to 15 U.S. Code 1692c ( c ), this letter serves as a formal cease and desist notice. You are hereby instructed to immediately cease all collection activity and communication related to this account and permanently remove it from my credit report. Failure to comply will result in formal complaints to the CFPB, FTC, and the Texas Attorney General, and may lead to legal action.

Additionally, in Federal Trade Commission v. Experian Information Solutions , Inc., No. SACV09-0133 ( C.D. Cal. 2009 ), Experian was found to have violated key provisions of the Fair Credit Reporting Act, specifically 15 U.S.C. 1681e ( b ), which requires credit reporting agencies to maintain reasonable procedures to ensure maximum possible accuracy of the information they report, and 15 U.S.C. 1681i ( a ), which mandates a reasonable reinvestigation of disputed information. The FTC determined that Experian failed to meet these obligations by continuing to report inaccurate or unverifiable information and by relying solely on furnishers without independently verifying the legitimacy or legality of the disputed debt. This case confirms that credit bureaus are legally accountable when they fail to perform a lawful and thorough reinvestigation, particularly when the consumer presents clear evidence that the information is invalid or the reporting entity is not legally authorized to furnish data. Allowing an unlicensed, unverified debt collector such as XXXX XXXX XXXX XXXX to continue reporting violates these same statutory responsibilities and subjects the credit reporting agency to potential civil liability under the FCRA.

Pursuant to the Fair Credit Reporting Act, you are hereby placed on notice that you have 15 calendar days to provide the method of verification, a detailed description of the procedure used to determine the accuracy and completeness of the disputed information, and copies of all documentation obtained from the furnisher that you relied upon to conclude your investigation. This includes, but is not limited to, any contracts, account statements, or communication from XXXX XXXX XXXX XXXX that proves the account is accurately reporting. If you are unable to provide this information within 15 days, or if your response fails to demonstrate that the reporting is legally compliant and verifiable, I demand the immediate deletion of the account and correction of any inaccurate name information associated with my file.

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