Equifax Class Action: Credit Reporting Agency Accused of Mishandling Disputes

Case Overview: A class action lawsuit has been filed against Equifax, alleging that the company failed to properly investigate credit report disputes. The plaintiffs claim that Equifax's actions caused them significant financial harm.

Consumers Affected: Individuals who filed credit report disputes with Equifax.

Court: U.S. District Court for the Northern District of Georgia, Atlanta Division

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Lawsuit Alleges Deceptive Tactics, Failure to Investigate Inaccuracies

Credit reporting giant Equifax has been hit with a class action lawsuit accusing the agency of failing to properly investigate credit report disputes and using deceptive tactics to discourage consumers from enforcing their rights under the Fair Credit Reporting Act. 

Six people filed the class action lawsuit all of whom said they experienced financial harm as a result of inaccurate credit reporting, accusing Equifax of causing widespread damage to their financial well-being and violating federal law.

Equifax Accused of Failing to Investigate Credit Report Disputes, Harming Consumers

Tyler Baker, Jennifer Bozue, Laura Brookman, Eric Heard, Edwin Woodburne, and Roberta Wright filed the proposed class action lawsuit each claiming that Equifax misreported their credit information even after they resolved debts. 

Baker said he settled his Best Egg account for $10,000, but Equifax continued to list the account as past due. Jennifer Bozue said she paid off her $5,000 Fortiva Credit Card account, only to see it still reported as a charge-off, the lawsuit said. 

The other plaintiffs said they had nearly identical experiences. Laura Brookman’s $3,500 Kohl’s account, paid in full, remained listed as delinquent. Eric Heard settled his $7,500 Merrick Bank account, but Equifax reported it as a charge-off. 

Edwin Woodburne found that Equifax had misreported his $4,000 Dell Financial Services account as being in collections after he had already paid it, according to the lawsuit, while Roberta Wright settled her $6,000 Aspire account, but Equifax continued to mark it as a charge-off for months afterward.

Despite submitting proper documentation to correct these errors, all the plaintiffs say they received form letters from Equifax asking for additional documents and failing to fix the inaccuracies. The lawsuit argues that these form letters were intended to create a burdensome process, discouraging consumers from pursuing their rights under the FCRA.

What Is the Fair Credit Reporting Act and How Does It Protect Consumers?

The Fair Credit Reporting Act is the law designed to ensure that consumer reporting agencies like Equifax maintain accurate information in consumer credit reports. Under the FCRA, when a consumer disputes information in their credit report, the agency is required to conduct a free investigation within 30 days, the lawsuit explains. They must either update the information or remove inaccurate items.

The plaintiffs argue that Equifax failed to comply with the requirement and instead of conducting proper investigations, the company responded with form letters claiming it couldn’t locate their credit files and asking for unnecessary and burdensome additional documentation, such as pay stubs, W-2 forms, and utility bills. 

The plaintiffs claim they had already provided all the necessary personal information, including full names, Social Security numbers, and addresses. By requesting these excessive documents and asking consumers to send them to two different addresses, Equifax allegedly violated its legal duty to re-investigate the disputes. 

The lawsuit alleges that these actions were intentional, designed to make the process more difficult for consumers and allow Equifax to avoid fixing the inaccuracies.

Credit Reporting Agencies Face Legal Challenges Over Deceptive Practices

This isn’t the first time a major company has faced lawsuits over improper credit reporting practices. Recently, a class action lawsuit was filed against The Independent Savings Plan Co., a finance company accused of making unauthorized credit inquiries after marketing calls. 

The suit alleges that ISPC made hard inquiries on consumers’ credit reports without their permission, despite the consumers explicitly stating they were not interested in making any purchases.

In another case, student loan giant Nelnet is facing legal action for allegedly miscalculating payments for borrowers enrolled in income-driven repayment plans. The lawsuit claims that these systematic errors caused borrowers to be overcharged, negatively impacting their ability to meet financial obligations and harming their credit scores.

The plaintiffs in this lawsuit argue that Equifax’s failure to follow the law has caused them significant financial harm. They want to represent a nationwide class in their seeking of damages, fees, and costs.

Case Details

  • Lawsuit: Baker, et al. v. Equifax, LLC
  • Case Number: 1:24-Cv-04004-Vmc-Rdc  
  • Court: U.S. District Court for the Northern District of Georgia, Atlanta Division

Plaintiffs' Attorneys

  • Mark A. Carey (Gator Law)

Have you experienced issues with Equifax or other credit reporting agencies regarding inaccurate information or disputes? Share your experiences in the comments below.

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