Consumer complaint received 2025-03-17 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Problem with fraud alerts or security freezes — 
Company: Experian Information Solutions Inc.
State: DC

Complaint narrative:
Experian Fraudulently Misclassified My XXXX  Loan as Identity Theft, Causing a False Fraud Designation with XXXX  To whom it may concern, I am filing this complaint against Experian for wrongfully misclassifying my XXXX  loan account as an identity theft dispute, which has resulted in significant harm and regulatory violations. 
This issue originated from CFPB Complaint ID XXXX, which I filed against Experian on XX/XX/XXXX regarding inaccurate information on my credit report. I never claimed identity theft in that complaint, nor did I authorize any fraud-related dispute. However, Experian mishandled my dispute and transmitted incorrect information to my XXXX  loan servicer, XXXX, falsely indicating that my account was involved in an identity theft or forgery claim. 
As a result of Experians actions, XXXX fraudulently designated my account as fraud-related, triggering unnecessary fraud procedures that have caused administrative burdens and potential harm to my credit report. I formally disputed this misclassification by filing CFPB Complaint ID XXXX against XXXX, which responded on XX/XX/XXXX, at XXXX XXXX  EST, referencing my original Experian dispute as the reason for the fraud designation. 
This means that Experian is the direct cause of this fraudulent misclassification, and its failure to ensure accurate reporting has led to a violation of multiple federal and XXXX consumer protection laws. 
Legal Violations Committed by Experian Under Federal, XXXX, and XXXX  Laws Experians fraudulent misclassification of my student loan as an identity theft dispute has triggered multiple legal violations at the federal, XXXX, and XXXX  levels. Below is a comprehensive legal breakdown proving Experians liability under each jurisdiction. 
I. Federal Law Violations ( FCRA, CFPA, FACTA, Accuracy & Integrity Rule ) 1. Fair Credit Reporting Act ( FCRA ) Violations FCRA 1681i ( a ) ( 1 ) Failure to Conduct a Reasonable Reinvestigation You failed to properly reinvestigate my dispute in CFPB Complaint ID XXXX, leading to a fraudulent misclassification that directly harmed my XXXX  loan account. 
Instead of verifying my dispute, you passed false information to XXXX, which then wrongfully flagged my account under fraud protocols. 
FCRA 1681i ( a ) ( 6 ) ( B ) Failure to Notify Consumer of Investigation Results You never informed me that you were transmitting my dispute as a fraud-related claim to XXXX. 
I was never notified of any changes that resulted from your dispute processing, violating my right to due process in credit reporting. 
FCRA 1681e ( b ) Failure to Maintain Maximum Possible Accuracy Your failure to accurately process my dispute resulted in material inaccuracies on my credit report. 
The wrongful identity theft designation created an unnecessary burden, requiring me to dispute an issue that you unlawfully triggered. 
FCRA 1681c-2 ( a ) Failure to Block Information in Cases of Identity Theft If you processed my dispute as an identity theft case but failed to provide me with protections under FCRA 1681c-2 ( a ), then you are in violation of this law. 
You improperly flagged my loan under fraud status without verifying the claim, which is the exact type of harm this law was meant to prevent. 
15 U.S.C. 1681n Willful Noncompliance with FCRA If you knowingly misclassified my dispute, this constitutes willful misconduct under the FCRA.

15 U.S.C. 1681o Negligent Noncompliance with FCRA Even if this was an error, your failure to correct it after my CFPB complaints and dispute filings constitutes negligence. 
2. Consumer Financial Protection Act ( CFPA ) Unfair, Deceptive, and Abusive Acts or Practices ( UDAAP ) ( 12 U.S.C. 5536 ( a ) ( 1 ) ( B ) ) Unfair Business Practices You misclassified my dispute as identity theft, misrepresented your findings to XXXX, and failed to notify me, which meets the legal definition of unfair business practices. 
Deceptive Representation of My Dispute You misled me by processing my dispute as identity theft when that was never my claim. 
You failed to provide transparency on how my dispute was processed, making it impossible for me to correct the error before it harmed my XXXX  loan account. 
3. FACTA ( FCRA 312 ) Failure to Maintain Data Accuracy Failure to Ensure Data Integrity You failed to ensure data accuracy and security, allowing false identity theft claims to be passed to a loan servicer, which then applied an unlawful fraud classification. 
Failure to Identify Systemic Errors in Processing Disputes FACTA requires CRAs to establish data security and fraud prevention measuresyour actions indicate a breakdown in those safeguards. 
4. Accuracy and Integrity Rule ( 12 C.F.R. 1022.43 ) Failure to Maintain Reasonable Procedures to Ensure Accurate Reporting You failed to verify the nature of my dispute before transmitting it to XXXX. 
This misclassification demonstrates systemic failures in your data integrity procedures. 
XXXX. XXXX, XXXX Law Violations ( CPPA, Identity Theft Protection Act ) XXXX. XXXX Consumer Protection Procedures Act ( XXXX CPPA ) Violations XXXX CPPA XXXX ( XXXX ) Misrepresentation of a Material Fact Your misrepresentation of my dispute as identity theft constitutes a false representation under XXXX XXXX XXXX 
This misrepresentation directly resulted in XXXX classifying my XXXX  loan as fraud-related. 
XXXX XXXX XXXX ( f ) Failure to Perform a Legal Duty You had a legal obligation to process my dispute correctly but failed to do so. 
By failing to conduct a proper reinvestigation and misclassifying my account, you failed to perform a legal duty owed to me under XXXX law. 
XXXX. XXXX. Identity Theft Protection Act XXXX ( a ) Failure to Protect Personal Information Failure to Take Reasonable Steps to Prevent Identity Misclassification If you mishandled a dispute related to identity theft but failed to provide me with proper consumer protections, you may have violated this provision. 
Failure to Properly Handle Dispute Data Your failure to verify the identity theft status of my dispute before flagging it to a data furnisher constitutes a failure to protect my sensitive consumer information. 
XXXX. XXXX  Law Violations ( CCPA, XXXX, XXXX ) XXXX. California Consumer Privacy Act ( CCPA ) Violations XXXX  Civil Code 1798.110 Failure to Disclose Consumer Data Processing You failed to disclose to me how my dispute was processed and why it was sent to XXXX as an identity theft claim. 
XXXX  Civil Code 1798.130 Failure to Comply with Consumer Requests for Information Your failure to provide dispute-related documentation upon request violates my rights under the CCPA. 
California Civil Code 1798.81.5 Failure to Secure Consumer Data If your systemic failures caused an identity theft misclassification, you may be liable for failing to implement adequate security measures under the CCPA. 
2. California Consumer Credit Reporting Agencies Act ( CCRAA ) Violations California Civil Code 1785.16 ( a ) - ( d ) Failure to Investigate Disputes Properly You did not reinvestigate my dispute properly, instead misclassifying it as identity theft and forwarding this incorrect information to a loan servicer. 
California Civil Code 1785.14 ( b ) Failure to Ensure Maximum Possible Accuracy Your failure to maintain accurate reporting resulted in a fraud misclassification, which created unnecessary burdens on my XXXX  loan account. 
XXXX. California Unfair Competition Law ( UCL ) Violations California Business and Professions Code XXXX Engaging in Unfair and Deceptive Business Practices Your misclassification of my dispute meets the UCLs definition of an unfair business practice. 
You engaged in deceptive conduct by failing to accurately process my dispute while misleading me about the results. 
Harm Caused by Experians Fraudulent Misclassification As a direct result of Experians reckless and unlawful misclassification of my dispute, I have suffered substantial harm, undue burden, and financial consequences that continue to affect my ability to manage my financial affairs. 
The impact of Experians misconduct is both immediate and ongoing, creating unnecessary obstacles that would not have existed had Experian complied with its legal obligations. 
My XXXX  loan servicer ( XXXX  ) improperly flagged my account as fraud-related, resulting in unjustified administrative hurdles, additional documentation requirements, and unnecessary verifications. These excessive procedures have delayed my ability to manage my XXXX  loan account efficiently, creating avoidable confusion and financial uncertainty. 
I have been forced to expend significant time and effort disputing an issue that I never caused. Experians failure to conduct a proper reinvestigation has required me to submit multiple disputes and regulatory complaints to correct an error that originated from Experians own misconduct. The time, effort, and administrative burdens placed on me constitute an unjustified and avoidable intrusion into my personal and financial affairs. 
Experians fraudulent misclassification may have directly harmed my credit profile. Fraud and identity theft designations on a consumer 's file can trigger heightened fraud monitoring, unnecessary account restrictions, and increased scrutiny from financial institutions. These negative consequences have the potential to restrict my access to credit, interfere with loan servicing, and damage my financial standing. 
The wrongful designation may have triggered alerts or automated risk assessments by lenders, potentially affecting my ability to secure favorable financial terms. Experian 's actions could have led to increased difficulty obtaining credit, higher interest rates, or unwarranted account reviews by financial institutions. 
Experians failure to properly investigate my dispute has created an ongoing cycle of harm, forcing me to pursue additional regulatory action to correct their misconduct. This has caused undue emotional distress, financial uncertainty, and administrative burdens that were entirely avoidable had Experian complied with its legal obligations under federal and state laws. 
The cumulative impact of Experians misconduct is not limited to administrative burdensit has resulted in financial harm, potential damage to my credit profile, and unnecessary disruptions to my financial security. I have been forced to navigate a situation entirely of Experians making, enduring consequences that Experian had a legal duty to prevent. Experian must be held fully accountable for the harm caused by its negligence, willful noncompliance, and reckless disregard for consumer protection laws. 
Requested Regulatory Action From Experian ( CFPB ) I request that the Consumer Financial Protection Bureau ( CFPB ) initiate a formal investigation into Experian for violations of the Fair Credit Reporting Act ( FCRA ), the Consumer Financial Protection Act ( CFPA ), and Washington, XXXX. consumer protection laws. 
To ensure accountability and compliance, I request that the CFPB take the following actions : 1. Immediately investigate Experians role in fraudulently misclassifying my XXXX  loan dispute and determine the full extent of their systemic failures in dispute handling. 
XXXX. Require Experian to remove any fraud or identity theft designation associated with my name, credit report, or linked disputes. 
3. Compel Experian to disclose all internal records, communications, and investigation notes related to CFPB Complaint ID XXXX and any other dispute Experian has associated with my XXXX  loan. 
XXXX. Mandate that Experian provide a formal, written explanation detailing : o How my dispute was processed o Who within Experian was responsible for the misclassification o What internal procedures ( or failures ) led to the erroneous fraud designation XXXX. Ensure that Experian formally confirms in writing that no adverse credit reporting has resulted from this fraudulent misclassification. 
Experians reckless and unlawful misclassification created undue harm and violated multiple federal and state consumer protection laws. The CFPB must take enforcement action to ensure Experians compliance with all applicable regulations and prevent similar violations from occurring in the future.

Demanded Corrective Action from Experian Experians fraudulent misclassification of my XXXX  loan dispute is a direct violation of its legal obligations under federal and state consumer protection laws. To mitigate the harm caused by this misconduct, I am demanding that Experian immediately take corrective action by : XXXX. Removing any fraud or identity theft classification associated with my XXXX  loan account and ensuring that Aidvantage updates its internal records accordingly. 
XXXX. Providing me with all internal records, investigation notes, and communications related to CFPB Complaint ID XXXX and any other dispute that led to this misclassification. 
XXXX. Issuing a formal written explanation detailing why my dispute was misclassified and the internal failures that led to this violation. 
XXXX. Providing written confirmation that no negative reporting, alerts, or fraud-related designations have impacted my credit report. 
XXXX. Outlining the corrective measures that Experian is implementing to prevent future misclassifications and failures in dispute processing. 
Experians failure to comply with these corrective actions within 30 business days will result in further escalation, including additional regulatory complaints, legal action, and direct engagement with consumer protection agencies. 
Attached as Evidence The following documents are attached as supporting evidence of Experians fraudulent misclassification, failure to conduct a proper investigation, and noncompliance with federal and XXXX consumer protection laws : Sworn and Notarized Affidavit of Truth ( AOT ) : A master legal record establishing the foundation for my disputes and outlining systemic issues with Experians dispute-handling practices. 
CFPB Complaint ID XXXX : My original dispute against Experian that was wrongly used to trigger an identity theft claim with XXXX. 
CFPB Complaint ID XXXX : The complaint filed against XXXX  regarding its fraudulent identity theft classification, to which XXXX responded XXXX XX/XX/XXXX, at XXXX XXXX  EST, citing Experian as the source of the misclassification. 
FTC Fraud Report ID XXXX : A report filed with the Federal Trade Commission ( FTC ) officially documenting that Experians fraudulent misclassification of my dispute caused XXXX to process an identity theft claim that I never submitted. This report serves as a formal record of Experians role in triggering the erroneous fraud designation and requests an investigation into its dispute-handling failures and violations of federal and state consumer protection laws. 
Experians Violations and My Commitment to Accountability Experian had an obligation to process my dispute accurately and in full compliance with federal and state consumer protection laws. Instead, it made a deliberate choice to misclassify my dispute, misrepresent the results, and transmit false information that directly harmed my XXXX  loan account. These actions reflect a fundamental failure of Experians dispute resolution processes and a blatant disregard for consumer rights. 
At every step, I have acted diligently, lawfully, and in full accordance with my rights under the Fair Credit Reporting Act ( FCRA ), the Consumer Financial Protection Act ( CFPA ), and the Washington, XXXX Consumer Protection Procedures Act ( XXXX CPPA ). I have meticulously documented every inaccuracy, disputed every misrepresentation, and engaged with the appropriate regulatory authorities to demand compliance and accountability. 
This complaint is not merely a request for correctionit is a formal demand for regulatory intervention, enforcement action, and systemic accountability. Experians failure to uphold its legal obligations has caused demonstrable harm, and it is imperative that this matter be addressed not only to rectify the damage done to me but to ensure that no other consumers are subjected to similar misconduct. 
Experian now has a choiceit can comply with the law, take full responsibility, and correct its failures, or it can continue its pattern of noncompliance and face escalating regulatory and legal consequences. I am fully prepared to pursue every available avenue to ensure that Experian is held accountable at every level necessary. 
Notice of Accountability, Enforcement & Consequences Experian is now formally on notice that this matter remains unresolved and requires immediate corrective action. I have acted in full compliance with all applicable laws, followed every proper procedure, and engaged the appropriate regulatory agencies to ensure Experian is held accountable for its violations. 
At this stage, the harm caused is undeniable. The issue is no longer whether I have been affectedit is whether Experian will take responsibility, correct its errors, and comply with federal and state consumer protection laws. 
If Experian stays on this path, it risks federal litigation, regulatory fines, and intensified oversight : Lawsuit Exposure Violations under F

CRA 1681n, UDAAP, and state consumer laws could lead to statutory damages and injunctive relief. Regulatory Penalties The CFPB has authority under 12 U.S.C. 5565
( a ) to impose fines for repeated violations. Continued noncompliance could escalate enforcement actions.

Systemic Investigation If misclassification patterns persist, the CFPB may have no choice but to pursue a consent order, stricter oversight, or legal action to force compliance. 
If Experian fails to act, I will escalate through all available legal and regulatory channels. Any further action taken will be in direct response to Experians ongoing failure to correct its misclassification and ensure compliance. My approach remains measured, lawful, and necessary to enforce my rights and prevent further harm. 
Sincerely, XXXX XXXX XXXX

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