Consumer complaint received 2024-11-26 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Information belongs to someone else
Company: Experian Information Solutions Inc.
State: IL

Complaint narrative:
I am writing to file a complaint regarding the inaccurate and incomplete reporting of accounts ending in XXXX ( XXXX XXXX XXXX ) and XXXX ( XXXXXXXX XXXX XXXX ) on my credit report. The financial institutions confirmed these accounts were discharged and sold to a nonaffiliated third party. However, the consumer reporting agency failed to verify this information, resulting in inaccurate and incomplete information on my credit report.

According to 26 CFR 1.61-12 ( a ), a discharge of indebtedness may result in the realization of income. The consumer reporting agency is currently reporting income received by the financial institution to my credit report. Additionally, 26 CFR 1.61-12 ( c ) ( i ) states that if a debt instrument provides for payments in a nonfictional currency, an issuer may realize a currency gain or loss upon repurchase. This is supported by U.S. GAAP and ASC 326-20-30-1. When the financial institution sold the debt, it was reported as a new asset, per the new agreement they entered with a nonaffiliated third party, netting the previous liability to zero per ASC 326-20-45-2. However, I never received the required documents per 26 CFR 1.6050P-1 ( a ) ( 1 ), so these accounts appear to be mine.

The consumer reporting agency failed to verify the information before reporting it, resulting in fraudulent activity on my credit report and my accounts. I have reported this fraudulent activity to the Federal Trade Commission.

According to the Fair Credit Reporting Act 609 ( a ) ( 1 ), consumer reporting agencies must verify all accounts through the original signed consumer contract. The consumer reporting agency has not provided verifiable proof for the accounts listed. The consumer reporting agencys failure to abide by the reasonable procedures required of them has negatively impacted my ability to obtain credit and has caused me a great deal of distress. Per 611 of the Fair Credit Reporting Act, also found in Public Law 91-508 611 ( a ), if the agency can not provide verifiable proof, the accounts must be removed immediately.

The consumer reporting agency 's reliance on the financial institution 's due diligence is insufficient. Per 31 CFR 903.5 ( a ), further collection action on discharged debts is prohibited, which means this information should have never even made it to my credit report. Additionally, 31 CFR 903.5 ( d ) requires agencies to release any liens on discharged debts. Had the consumer reporting agency followed the reasonable procedures re
quired of them, they would have found through public record that there is no debt associated with me on these accounts.

15 U.S. Code 1681 ( e ) mandates that consumer reporting agencies maintain reasonable procedures to avoid violations and limit the furnishing of inaccurate and incomplete information to consumer reports. This can also be found in Public Law 91-508 602. Experian failed to maintain reasonable procedures. On a phone call with an Experian XXXX, XXXX, on XX/XX/year> at roughly XXXX, the rep refused to provide a reference number and stated their procedures rely solely on the financial institution 's verification. I was told they didnt have to verify the information because the bank already did. 

Public Law 106-102 Title V Subtitle A 502 ( a ) requires financial institutions to notify consumers before sharing nonpublic personal information. I was never informed that my information would be shared. Additionally, 15 U.S. Code 1681 604 ( a ) ( 2 ), also found in Public Law 91-508 604 ( 2 ), states that consumer reports can only be furnished with the consumer 's written consent, which I did not provide.

15 U.S. Code 1681c ( a ) ( 5 ) states : " Except as authorized under subsection ( b ), no consumer reporting agency may make any consumer report containing any of the following items of information : Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years. '' This can also be found in Public Law 91-508 605. This account is an adverse item they are reporting, again without my permission, which is against the law.

Per the Fair Credit Reporting Act as a federally protected consumer, I am now opting out of any and all authorization I the consumer may have given written, unwritten, verbal and nonverbal per 15 U.S. Code 6802 and the Gramm Leach Bliley Act, Public Law 106-102 502. I request the immediate removal of these accounts from my 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