Consumer complaint received 2024-12-11 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: NC

Complaint narrative:
Complaint Summary : I am filing this complaint due to the failure of the creditor or collection agency to validate the alleged debt as required under the Fair Debt Collection Practices Act ( FDCPA ), 15 U.S.C. 1692g, and other applicable federal laws, including the Truth in Lending Act ( TILA ) and the Fair Credit Reporting Act ( FCRA ). Despite multiple written requests for validation, the requested documentation has not been provided. Furthermore, my affidavit of loan denial remains unrebutted, confirming the validity of my claims under law. The accounts in question have also been listed as charged-off, further compounding the violations of federal law. Additionally, this is not the first time a complaint of this nature has been filed for these accounts. An opt-out request was initiated months ago, yet these accounts are still being reported, in direct violation of federal law.

Details of the Issue : Failure to Validate Debt : Multiple requests were made for a full accounting and validation of the alleged debt. These included requests for proof of the original agreement, assignment documentation, an itemized accounting of charges, and evidence of legal entitlement to collect the debt. 
No substantive response has been received, and the creditor/collector has failed to provide documentation demonstrating compliance with FDCPA, TILA, and FCRA requirements. 
Unrebutted Affidavit : A sworn affidavit was submitted, outlining specific points that remain unrebutted, including claims regarding the funding and securitization of the account. Under legal standards, this unrebutted affidavit stands as truth, further invalidating the alleged debt.

Charged-Off Accounts : The accounts in question have been listed as charged-off, despite the lack of validation and the presence of a billing error. By charging off the accounts, the creditor/collector has attempted to remove themselves from liability while continuing to report negatively on my credit report. This constitutes a violation of 15 U.S.C. 1692e, which prohibits false, deceptive, or misleading representations in connection with the collection of a debt.

Violation of Cease-and-Desist Order : A formal cease-and-desist request was issued regarding collection activities due to the billing error and lack of validation. Despite this, the creditor/collector continued to report negatively, charged off the debt, and failed to correct the billing error, violating FDCPA requirements and protections under TILA.

Opt-Out Request Ignored : An opt-out request was initiated months ago, yet these accounts continue to be reported on my credit file. This failure to honor the opt-out request is a violation of federal law, including provisions of the Fair Credit Reporting Act ( FCRA ).

Repeat Complaints : This is not the first complaint filed for these accounts. The ongoing failure to address the underlying issues demonstrates willful non-compliance with federal consumer protection laws.

Reporting and Collection Activities : The account has been reported to credit bureaus with late payments and delinquencies, despite the unresolved billing disputes, lack of validation, opt-out request, and cease-and-desist order. This violates FCRA requirements ( 15 U.S.C. 1681s-2 ( b ) ) to ensure accurate reporting and cease collection efforts during disputes.

Violation of Consumer Rights : Failure to adhere to FDCPA, TILA, and FCRA mandates constitutes an infringement of my consumer rights, including protections against unfair and deceptive practices. 
Proof That Servicers and Creditors Are Debt Collectors Under Legal Definitions : Servicers as Debt Collectors : Under 15 U.S.C. 1692a ( 6 ), a debt collector is defined as " any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. '' Mortgage servicers, loan servicers, and other creditors are considered debt collectors when they acquire a debt that is already in default. This was reinforced in XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX, where the court held that servicers who obtain accounts in default are subject to FDCPA requirements. 
Creditors as Debt Collectors : Creditors also qualify as debt collectors if they regularly attempt to collect debts on behalf of third parties or if the debts were assigned after default. 
Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX clarifies that even entities collecting their own debts must comply with FDCPA provisions if the debt was in default at the time of acquisition. 
Hybrid Roles of Servicers and Creditors : Servicers often act as third-party agents for creditors, making them subject to FDCPA when engaged in debt collection activities. XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX determined that even loss mitigation communications can qualify as debt collection under FDCPA. 
Further Legal Support for Claims : FDCPA Violations : Pursuant to 15 U.S.C. 1692g, creditors or collectors must validate debts upon written request. Failure to do so, while continuing collection efforts, constitutes a clear violation. 
Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX emphasizes that debt collectors must provide adequate validation of the debt upon request.

FCRA Violations : Under 15 U.S.C. 1681s-2 ( b ), furnishers of credit information are required to conduct a reasonable investigation into disputed accounts and must not report inaccurate information. Reporting disputed amounts as delinquent or charging off accounts during a billing error investigation violates federal law. 
Case Law : XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX XXXX ruled that collection activities during billing disputes are prohibited.

TILA Protections : According to 15 U.S.C. 1666 and 12 C.F.R. 1026.13 ( d ) ( 1 ), billing disputes must be resolved before collection, adverse reporting, or charge-offs can occur.

Requested Resolution : Adjust the account balance to reflect a zero balance due to the creditor/collectors inability to validate the debt. 
Remove all associated late payments, delinquencies, or negative marks from my credit report. 
Reverse the charge-off status of the accounts. 
Provide all documentation requested in the debt validation submissions to confirm compliance with applicable laws. 
Issue a formal acknowledgment of non-compliance with statutory requirements and cease any further collection activities related to this account.

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