Consumer complaint received 2024-11-08 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account information incorrect
Company: Experian Information Solutions Inc.
State: OH

Complaint narrative:
I am submitting a complaint regarding XXXX handling of my account payment and subsequent credit reporting issues, which may not align with Fair Credit Reporting Act ( FCRA ) guidelines. 

On XX/XX/XXXX, I made a full payment of {$410.00} via XXXX automated system to satisfy an outstanding balance and reinstate service and reporting on my credit reports. I used my credit card, and the payment confirmation number is # XXXX. While processing this payment, I had a XXXX representative on the line who transferred me to their recovery department. I informed the representative that my balance was paid in full. However, they stated I still owed an additional {$75.00} as a collection fee. 

Before contacting XXXX the collection agency XXXX XXXX XXXX XXXX XXXX assured the {$75.00} fee would be waived and was instructed to follow up with XXXX XXXX to confirm this and expedite account removal from my credit report. The XXXX  representative and automated system gave me the option to submit my payment on my account direct. XXXX is the controller of this account and is refusing to close the account asking for more money and XXXX is the company reporting it to my credit not the collection company. This delay in reporting the account as fully paid is negatively impacting my ability to qualify for a mortgage, and I believe it may violate FCRA requirements on timely and accurate reporting. 

I request the CFPBs assistance in ensuring XXXX accurately reports my account as paid in full to credit bureaus and promptly removes any negative remarks from my credit report. 

FCRA Section 623 ( 15 U.S.C. 1681s-2 ) - Responsibilities of Furnishers of Information to Consumer Reporting Agencies Subsection ( a ) : Requires accurate reporting to credit bureaus. Furnishers ( such as XXXX ) must not report any information they know or have reasonable cause to believe is inaccurate, including balances that are no longer owed. 

Subsection ( a ) ( 2 ) : Obliges furnishers to promptly update and correct information once they know it is inaccurate or incomplete. If XXXX has received full payment, they are obligated to correct the reporting promptly to reflect that the debt has been satisfied. 

FCRA Section 611 ( 15 U.S.C. 1681i ) - Procedure in Case of Disputed Accuracy This section requires credit reporting agencies to investigate disputed information on a credit report if a consumer challenges its accuracy. XXXX, as the furnisher of information, would also be involved in this process, and must respond accurately and promptly. 

FCRA Section 605 ( a ) ( 1 ) ( 15 U.S.C. 1681c ) - Obsolete Information If there are any collections or fees reported as delinquent when the debt has actually been paid in full, this may violate provisions on obsolete or outdated information. 
Consumer Financial Protection Act of 2010 ( 12 U.S.C. 5536 ) - Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) If XXXX  representatives are knowingly adding unwarranted collection fees or inaccurately representing your payment status, this may be considered an unfair or deceptive practice under UDAAP. 

Truth in Lending Act ( 15 U.S.C. 1601 et seq. ) - Unfair Billing Practices While this act primarily regulates billing for credit card companies, XXXX  insistence on an unnecessary {$93.00} collection fee could potentially be seen as an unfair billing practice, especially if the debt was settled fully before the fee was added. 

Naturally, when someone calls to settle a balance, and the original creditor offers the option to pay the outstanding amount directly, most people will choose to pay the original creditor instead of dealing with a collection agency. This is because paying the original creditor often feels more secure and straightforward, and many assume it will lead to a faster resolution on their credit report.

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