Consumer complaint received 2024-10-04 00:00:00
Product: Credit reporting or other personal consumer reports — Credit reporting
Issue: Incorrect information on your report — Account status incorrect
Company: Experian Information Solutions Inc.
State: WI

Complaint narrative:
This formal complaint is submitted against XXXX XXXX for multiple violations of the Fair Debt Collection Practices Act ( FDCPA ), codified at 15 U.S.C. 1692 et seq., and the Fair Credit Reporting Act ( FCRA ), codified at 15 U.S.C. 1681 et seq.. These violations stem from XXXX XXXX unlawful acts, including failure to validate the alleged debt, inaccurate reporting, and unauthorized access of the Principal 's credit information. Such acts constitute a breach of the Principals rights under federal law. 

In XX/XX/XXXX, the Principal submitted a formal debt validation request to XXXX XXXX pursuant to 15 U.S.C. 1692g ( b ), seeking documentation that would establish XXXX XXXX standing as the creditor. XXXX XXXX refused to comply with this request, thereby breaching their affirmative duty under the FDCPA. The failure to provide validation deprived XXXX XXXX of the legal standing necessary to continue debt collection or report the alleged debt. 

Upon review of the provided documentation, it became clear that XXXX XXXX can not be recognized as the Grantor or creditor of the debt. Instead, their role is that of a servicer or fiduciary, tasked with managing the account, but without standing to enforce or collect the debt. This distinction is critical because XXXX XXXX lacked the authority to engage in collection or credit reporting activities without proper validation. Continuing such activities constituted a prima facie violation of federal law. 

Despite their failure to validate, XXXX XXXX reported the account as charged off in XX/XX/XXXX, with a balance of {$5100.00}, which was reflected in the Principal 's credit reports. This act of reporting without legal authority constitutes a material misrepresentation of the debts status and caused substantial harm to the Principals credit profile. Before the charge-off, the account had been reported as delinquent for multiple months, further damaging the Principals creditworthiness. XXXX XXXX reckless disregard for their obligations under the FDCPA and FCRA has prejudiced the Principal by damaging their credit and financial standing. 

In XX/XX/XXXX, the Principal submitted a second formal debt validation request, seeking access to the general ledger and receivables accounting to verify the legitimacy of the debt. XXXX XXXX failed to cure their breach and again refused to provide validation, instead offering a settlement. Such an offer, in lieu of validation, is further evidence that XXXX XXXX does not hold the legal status of creditor. The offer of settlement, made without validation, constitutes a further violation of 15 U.S.C. 1692g ( b ) and represents bad faith. 

Additionally, XXXX XXXX continued to access the Principals credit report without a permissible purpose, violating 15 U.S.C. 1681b. Given that the debt was unvalidated, any continued access to the Principal 's credit information was unauthorized and unlawful. These actions were done with malice and have caused further harm to the Principal 's financial reputation. 

Legal Violations include but not limited to : Failure to Validate the Debt and Establish Creditor Status ( 15 U.S.C. 1692g ( b ) ) : XXXX XXXX violated 15 U.S.C. 1692g ( b ) by failing to validate the alleged debt. Without validation, XXXX XXXX lacked standing to act as the creditor. Their continued collection and reporting efforts were conducted in violation of federal law. 

Material Misrepresentation of Debt Status ( 15 U.S.C. 1692e ) : By reporting the debt as charged off without validation, XXXX XXXX made a material misrepresentation regarding their authority over the debt. This misleading representation violated 15 U.S.C. 1692e.

Unlawful Continuation of Collection Efforts ( 15 U.S.C. 1692g ( b ) ) : Offering a settlement without validating the debt and continuing collection efforts, including reporting to credit bureaus, violated 15 U.S.C. 1692g ( b ). Such activities were unlawful as XXXX XXXX failed to establish creditor status. 

Furnishing Inaccurate Information to Credit Bureaus ( 15 U.S.C. 1681s-2 ( a ) ) : XXXX XXXX breached its obligations under 15 U.S.C. 1681s-2 ( a ) by reporting the debt as charged off without validation. This inaccuracy caused prejudice to the Principals creditworthiness. 

Failure to Correct Inaccurate Information After Dispute ( 15 U.S.C. 1681s-2 ( b ) ) : Despite formal disputes, XXXX XXXX failed to correct the inaccurate information, constituting a violation of 15 U.S.C. 1681s-2 ( b ).

Unauthorized Access of Credit Information Without a Permissible Purpose ( 15 U.S.C. 1681b ) : By accessing the Principals credit report without a permissible purpose, XXXX XXXX acted in breach of 15 U.S.C. 1681b. These actions were both unlawful and willful.

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