Discharged/invalid debts on credit report
Consumer reporting agencies (CRAs) play an outsize role in people’s lives these days, with even prospective employers and landlords asking for consumer reports. The Fair Credit Reporting Act (FCRA) governs the activities of CRAs and also of the companies known as furnishers that provide information to CRAs. The complaint for this class action alleges that BMW Financial Services NA, LLC has furnished erroneous negative and derogatory information on consumer credit reports and has failed to properly investigates disputes.
TransUnion, LLC is putting aside $500,000 to resolve a class action brought under the Fair Credit Reporting Act (FCRA) concerning information it reported on consumers.
Credit reports used to be used only for things like applications for credit cards and mortgages. With more and more entities, such as employers and landlords, insisting on reviewing credit reports before hiring job applicants or giving people leases, it’s increasingly important that companies report accurate information on accounts. The complaint for this class action alleges that TD Bank provided inaccurate information about a credit account.
Consumer reports play an ever-larger role in American life. They are now ordered not just by credit card companies or mortgage lenders but prospective employers and landlords. The complaint for this class action claims that Target corporation did not properly report an individual’s discharged debt, causing an invalid debt to appear on his credit report.
For the consumer reporting system to work properly, it’s important that reporting agencies be held to standards of accuracy. The Fair Credit Reporting Act (FCRA) sets out rules for reports and their use. However, the complaint for this class action alleges that TransUnion, LLC reported that certain consumers owed debts that had been forgiven in a class action.
This settles a consolidated class action alleging that the major credit reporting agencies—Equifax, Experian, and TransUnion—violated the Fair Credit Reporting Act (FCRA) as well as state laws when reporting debts discharged in bankruptcy.