Lawsuit Claims Three Credit Reporting Agencies Allegedly Violated FCRA by Reporting Old Debt

 FCRA-graphic

Written By ESR News Blog Editor Thomas Ahearn

An Illinois woman has filed a lawsuit filed against the three major nationwide credit reporting agencies – Equifax, Experian, and TransUnion – claiming that they allegedly violated the federal Fair Credit Reporting Act (FCRA) by failing to observe her bankruptcy and reporting discharged debt, according to a report by the Madison-St. Clair Record.

The Madison-St. Clair Record reports that the plaintiff filed a complaint on March 21, 2017, in the U.S. District Court for the Southern District of Illinois claiming FCRA violations when she obtained copies of her credit reports “stating her alleged debt was past due despite the fact that she was granted a discharge of her debt when she applied for a bankruptcy petition.”

The Record also reports the plaintiff claims the three credit bureaus violated the FCRA – which regulates the collection, dissemination, and use of consumer information – “because they allegedly falsely reported on plaintiff’s credit, failed to follow reasonable procedures, and failed to conduct reasonable reinvestigation with respect to the inaccurate credit information.”

The plaintiff requests a trial by jury and seeks judgment for damages (actual, statutory, and punitive), attorney’s fees, and costs. The case number is 3:17-cv-00281. The complete report from the Madison-St. Clair Record is available at http://madisonrecord.com/stories/511098260-credit-reporting-agencies-violated-fcra-in-reporting-old-debt-consumer-claims.

As reported by ESR News in March 2017, the Consumer Financial Protection Bureau (CFPB) – an agency that helps consumer finance markets work by making rules more effective – released a special report that detailed problems in the credit reporting industry such as fixing data accuracy, repairing broken dispute processes, and cleaning up reported information.

ESR News also reported on recent fines ordered by the CFPB against the three major credit reporting agencies for deceiving consumers about credit scores. The CFPB fined Experian $3 million in March 2017 and fined TransUnion and Equifax more than $17.6 million combined in January 2017. To learn more about the CFPB, visit www.consumerfinance.gov.

More ESR News Blogs about the FCRA

Employment Screening Resources® (ESR) – a strategic choice for employers concerned about accuracy and compliance in their background screening programs – offers more ESR News blogs about the Fair Credit Reporting Act (FCRA) at www.esrcheck.com/wordpress/tag/fair-credit-reporting-act-fcra/. To learn more about ESR, please visit www.esrcheck.com.

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