2015 is a big year for the credit reporting industry. Major changes are underway. Earlier this year, Equifax, Experian, and Trans Union announced that they would change the way they handle credit disputes and unpaid medical bills. Credit experts say the announcement marks the biggest reform for the credit reporting industry in more than a decade. Most importantly, these changes will help millions qualify for better interest rates on student, home, and auto loans.
Court Certifies Class Action Against Equifax
Plaintiff in a class action lawsuit filed against Equifax in Virginia has successfully obtained class certification of her claims. The lawsuit alleges that Equifax misreported the status of certain state court judgments. The certified class consists of consumers who told Equifax of a disposed state court judgment before Equifax published an inaccurate report between February 2008 and February 2013.
Duke Energy Reported False Credit Info on 500,000 + Customers
Cento Law is currently investigating Duke Energy for potential violations of the Fair Credit Reporting Act. Last week, the US's largest electric power holding company, Duke Energy, issued a press release notifying customers of a payment reporting error. The inaccurate reporting dates back to 2010. Approximately 500,000 Duke Energy customers in Indiana, Ohio, and Kentucky have been affected.
Do you have a potential claim?
Experian Ordered to Produce Consumer Disclosures in Native Format
On July 2, 2013, a Indiana consumer filed suit in federal court against Experian and Green Tree Servicing, LLC for neglect and willful violations of the Fair Credit Reporting Act (FCRA). The case is currently in the discovery stage. During the discovery stage, each side is allowed to conduct depositions, request relevant documents, ask interrogatories, and/or serve admissions. In this case, as the discovery was unraveling, Plaintiff requested specific documents from Experian their native format. Experian objected and drove Plaintiff to file a Motion to Compel with the Court.
Stop Errors in Credit Use and Reporting (SECURE) Act Introduced by Sherrod Brown
Senator Sherrod Brown of Ohio, has introduced the Stop Errors in Credit Use and Reporting (SECURE) Act to ensure that all have accurate information on their credit report to ensure they are being treated fairly.
According to the article published by Senator Brown, "[t]he SECURE Act would require credit reporting agencies to improve their processes for collecting
Consumer Financial Protection Bureau to Hold Consumer Advisory Board Meeting
The Consumer Financial Protection Bureau (CFPB) will be holding a Consumer Advisory Board Meeting on February 27, 2014 in Washington, D.C. The agenda for the meeting indicates an open session to the public (RSVP's required) on Protecting Consumer Credit Profiles. CFPB Director, Richard Cordray is scheduled to speak about the consumer experience in the credit reporting market.
Identity Theft
Federal Law Aids Consumers in Fixing Credit Reports Due to Identity Theft
When an identity is stolen, the theft usually leads to the fraudulent use of personal identifying information. The use of stolen information such as name, Social Security number, and date of birth fall victim to identity theft when used to obtain electricity, gas, open a checking account, and even attain employment.
When new accounts are open, thieves usually don't stick around to see their financial obligations through. In turn, furnishers start reporting negative information to the credit reporting agencies. The new information gets assigned to a credit file that matches the name, Social Security number, and date of birth of an innocent, now victimized, consumer.
Identity Theft - Presentation to the United Way of Central Indianapolis
New CFPB Bulletin Issues Strong Warning to Furnishers of Consumer Credit Information
Furnishers Are Required to Review Documentation from Credit Reporting Agencies
The Consumer Financial Protection Bureau (the “CFPB”) has issued a Bulletin, dated September 4, 2013, to companies that furnish information to consumer reporting agencies (“CRAs”) regarding furnisher obligations under the Fair Credit Reporting Act (the “FCRA”). The Bulletin is intended to deal specifically with the FCRA requirement that furnishers are required to “review all relevant information” when investigating a consumer dispute. The CFPB Bulletin provides a warning to furnishers that the CFPB maintains supervisory and enforcement authority which it will use to address furnisher violations.
The Consumer Financial Protection Bureau’s Reports on Received Complaints
Federal Agency to Oversee Credit Reporting Agencies
In July of 2011, the Consumer Financial Protection Bureau (CFPB) became the first federal agency to oversee credit reporting agencies such as Equifax, Experian, and Trans Union. The CFPB receives complaints directly from consumers relating to credit reporting, mortgages, bank accounts and services, private student loans, consumer loans, and money transfers. In July 2013, the CFPB released a report which provides a snapshot of the complaint process and a analysis of the complaints they received. The report states that between the July 21, 2011 through June 20, 2013; 14,200 credit reporting complaints where received by consumers in the marketplace.
$18. 6 Million Verdict Against Equifax for Not Fixing a Mixed Credit Report
Equifax Slammed with $18.6 Million Jury Verdict for Violations of the FCRA
A federal jury recently awarded Julie Miller of Oregon with $18.6 Million.
In 2009, Julie Miller applied for credit and was denied. The denial was a result of credit information belonging to a different Julie Miller being mixed with the credit report of the applicant. The inaccuracies consisted of:
- Wrong Social Security Number
- Wrong birth date
- Accounts that were not hers; and
- Erroneous collection accounts.
The mixed credit report resulted in a lost opportunity to obtain credit.
Challenging the Accuracy of Bankruptcy Credit Reporting | Indiana Consumer Files Lawsuit Against Experian and Green Tree | Bankruptcy Reaffirmations and Ride Throughs
Cento Law, LLC attorney G. John Cento filed a lawsuit against Experian Information Solutions, Inc. and Green Tree Servicing, LLC alleging numerous violations of the Fair Credit Reporting Act. In the suit, Plaintiff alleges Experian and Green Tree inaccurately reported his mortgage account which had been included in bankruptcy but which survived the bankruptcy as a “ride through.”
Consumer Reporting Agencies
What is a Consumer Reporting Agency?
The term "consumer reporting agencies" is a statutory term defined by the Fair Credit Reporting Act (the "FCRA"). Consumer reporting agencies are often referred to as "credit bureaus" or "credit reporting agencies." Under the FCRA, a consumer reporting agency is a company that collects information and provide reports on consumers that are most often used to decide whether to provide consumers credit, insurance or employment. The following is a list of companies that identify themselves as consumer reporting agencies:
National Consumer Reporting Agencies
- Equifax
- Experian
- Trans Union
Class Action Against Green Tree Challenging Accuracy of Joint Account Holder Bankruptcy Credit Reporting
Lawsuit Filed Against Green Tree for Reporting a False Bankruptcy
June 7, 2013
Today, Cento Law, LLC attorney G. John Cento filed a class action lawsuit against Green Tree Servicing, LLC alleging numerous violations of the Fair Credit Reporting Act. In the suit, Plaintiff alleges Green Tree inaccurately reported his mortgage account to the consumer reporting agencies (Experian, Equifax and/or Trans Union) that he had included his mortgage in bankruptcy even though Plaintiff had never filed bankruptcy.
Class Action Against Experian, Wells Fargo and Citimortgage Challenging Accuracy of Reporting of Consumer Short Sales
Cento Law, LLC attorney G. John Cento, through local California counsel, filed a class action lawsuit against Experian Information Solutions, Inc., Wells Fargo Bank and Citimortgage alleging numerous violations of the Fair Credit Reporting Act. In the suit, Plaintiff alleges the consumer reporting agency, Experian, and credit data furnishers, Wells Fargo and Citimortgage, inaccurately reported his short sale on his credit report
Credit Reporting Law - Presentation Hosted by the Indianapolis Bar Association
Credit reporting problems can affect any consumer. Join G. John Cento of Cento Law LLC on May 30 as he presents an introduction to credit reporting law, including a review of the many important provisions of the Fair Credit Reporting Act (FCRA), an outline of the credit reporting industry key players and common claims brought under the FCRA.
Background Checks | Employment Screening
Background Checks and the Federal Law
Employers obtain background checks (or consumer reports, commonly known as credit reports) to aid decision making when it comes to evaluating a consumer for employment, promotion, reassignment, or retention as an employee. Intelli Corp, HireSafe, HireRIght, Clarifacts, EmployeeScreenIQ, and Proforma are just a few of the many background check/employee screening companies that offer employers their services. When an employer conducts a background check, they may be provided with any of the following information about you:
- Credit reports;
- Criminal and civil records;
- Social security number (trace and validation);
- Employment verification;
- Education verification;
- Professional license verification;
- Motor vehicle and driving records;
- Military record verification; and
- Workers’ compensation history.
Out-of-Date Entries on Your Credit Report
Negative information such as: delinquencies, bankruptcies, charge-offs, loan defaults, foreclosures, lawsuits and judgments, and tax liens are barred from forever appearing on your credit report. The Fair Credit Reporting Act (FCRA) requires credit reporting agencies to remove most negative information from your credit reporting after the credit reporting time limit has expired. Reporting old, out-of-date information is against federal law.
According to the FCRA, credit reporting agencies cannot report negative information for an undetermined amount of time. In fact, negative information can only be reported for a specific amount of time.
40 Million Americans Have Mistakes on Their Credit Reports | Is your credit report accurate?
A new government study reports that over 40 million Americans have mistakes on their credit reports; and 20 million Americans have serious mistakes on their credit reports. Just before the government study was released, 60 Minutes aired a story about their investigation into the credit reporting industry. As explained by 60 Minutes, both the government study (which was conducted by the Federal Trade Commission and was the largest and most comprehensive such study ever done on the credit reporting industry) found these mistakes are often almost impossible to remove from your credit file.
Highlights From FTC Recent Study On Credit Report Inaccuracy
The Federal Trade Commission (the “FTC”) recently released its fifth interim report on a national study of credit report accuracy. This was the first national study to include participation from consumers, lenders/data furnishers, FICO and the national consumer reporting agencies (the “CRAs”). The FTC found that:
- “26% of the 1,001 participants in the study identified at least one potentially material error on at least one of their three credit reports.”
- Only 21% of participants had