Consumer complaint received 2024-08-16 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: CA

Complaint narrative:
XXXX - XXXX has not been officially certified to adhere to any established reporting standards. It is imperative to acknowledge that this information might be deemed incomplete, outdated, or unsupported. Thus, we kindly request the removal of any erroneous or unsupported content from this page. Your prompt attention to this matter would be greatly appreciated. 
Based on the details provided for the XXXX account, here is an analysis of the potential legal violations under the Fair Credit Reporting Act ( FCRA ) and other relevant consumer protection laws, with a specific focus on the fact that this account was paid off and is now being reported unlawfully : 1. FCRA 607 ( b ) - Accuracy of Information Law : This section mandates that consumer reporting agencies ( CRAs ) ensure maximum possible accuracy in the information reported on consumer credit reports.

Violation : The account is being reported as " Derogatory '' and as a " Chargeoff, '' even though it has been paid off. Reporting the account as having a derogatory status when it has been satisfied is inaccurate and misleading, violating the FCRAs requirement for accurate reporting.

2. FCRA 611 - Dispute Resolution Law : This section allows consumers to dispute inaccurate or incomplete information on their credit reports. CRAs must investigate disputes within 30 days and correct any inaccuracies.

Violation : If you have disputed this account on the grounds that it was paid off and it continues to be reported as a charge-off, the CRAs may be in violation of the FCRAs dispute resolution provisions by failing to correct the inaccurate information.

3. FCRA 605 ( a ) - Obsolete Information Law : The FCRA prohibits the reporting of adverse information that is older than 7 years ( with certain exceptions such as bankruptcies ).

Violation : Since the account has been paid off, continuing to report it as a chargeoff or derogatory account could violate the FCRAs rules against reporting obsolete or misleading information.

4. FCRA 623 ( a ) ( 1 ) - Duty of Furnishers to Provide Accurate Information Law : Furnishers of information must ensure the accuracy of the information they report to CRAs. 

Violation : XXXX, as the furnisher, has a duty to update the account status to reflect that it has been paid off. If they continue to report it as a charge-off, they are violating their obligation under this section.

5 of 9 5. CFPB Regulations - Unfair, Deceptive, or Abusive Acts or Practices ( UDAAP ) Law : The CFPB prohibits any unfair, deceptive, or abusive acts or practices in connection with consumer financial products or services.

Violation : Continuing to report an account as " Derogatory '' or " Chargeoff '' after it has been paid off is deceptive, as it misleads other creditors and could unfairly impact your creditworthiness. This misreporting could be considered a violation of CFPB regulations.

6. 15 U.S.C. 1681s-2 ( b ) - Responsibilities of Furnishers of Information to Consumer Reporting Agencies Law : This section requires furnishers of information, like XXXX, XXXX ensure that the information they provide to CRAs is accurate and regularly updated. 

Violation : If XXXX has not updated the account status to reflect that it has been paid off, and it continues to report it as a charge-off, they may be in violation of this provision.

7. 15 U.S.C. 1681e ( b ) - Procedures to Assure Maximum Possible Accuracy Law : CRAs are required to follow reasonable procedures to assure maximum possible accuracy in the information they report.

Violation : The CRAs failure to update the account status after it was paid off indicates that they may not have followed proper procedures to ensure accuracy, violating this section.

8. FCRA 623 ( a ) ( 2 ) - Duty to Correct and Update Information Law : Furnishers must promptly correct and update information that they determine is not complete or accurate. 

Violation : XXXX is required to correct the reporting once the account was paid off. Failure to update the account status to reflect that it is no longer derogatory or charged-off is a violation of this duty. 

9. FCRA 609 ( a ) ( 1 ) - Disclosure to Consumers Law : CRAs are required to provide consumers with a clear and accurate disclosure of all the information in their credit file.

Violation : By reporting a paid-off account as derogatory, the CRAs are providing misleading information, which may prevent you from fully understanding your credit situation and thus constitutes a potential violation of this section.

In summary, the continued reporting of a paid-off account as derogatory and charged-off is not only inaccurate but also potentially unlawful. The FCRA, CFPB regulations, and other consumer protection laws require both the furnishers of information ( XXXX XXXX and the CRAs to update and correct this information promptly.

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