CFPB Sues Experian! What Does This Mean For Us?

Credit News

The CFPB Vs Experian... Again!

Yes, again. But before we get into that, who is the CFPB? 

The Consumer Financial Protection Bureau (CFPB) is a U.S. government agency established in 2010 to oversee financial institutions and protect consumers from unfair, deceptive, or abusive practices. Its responsibilities include enforcing federal consumer financial laws and ensuring that consumers have access to fair and transparent financial products and services.

On January 7, 2025, the CFPB filed a lawsuit against Experian, one of the nation’s largest credit reporting agencies. The lawsuit alleges that Experian conducted inadequate investigations into consumer disputes regarding inaccuracies in their credit reports. Specifically, the CFPB claims that Experian failed to properly reinvestigate disputed information, did not delete inaccurate or unverified data, and, in some cases, reinserted previously removed erroneous information without notifying consumers.  

These alleged practices can significantly harm consumers by negatively affecting their credit scores, which are crucial for obtaining loans, mortgages, employment, and housing. The CFPB’s lawsuit seeks to compel Experian to comply with legal standards, provide restitution to affected consumers, and impose civil penalties for the company’s actions.  

According to Top Class Actions, This is not Experians first rodeo, as they have settled a previous class action lawsuit for incorrect residential information at the whopping tune of $22 Million dollars with an "M"! 

Experian Responds To Trending Lawsuit!

Experian was like:  "stop playing on our name"!

The full article is on the Experian site, but here's a quote from them:

"The lawsuit is completely without merit. It is contrary to longstanding regulatory and judicial precedent and is another example of irresponsible overreach by the CFPB. Our legal position is strong, we will defend it vigorously and are confident we will prevail. We do not expect this to have any material impact on our business". 

So What Does That Mean For The People? 

First thing you want to do if your credit score is less than perfect is:

1. Pull your credit score from Experian.com
2. Find inaccurate or incomplete information that's reporting
3. Send a dispute letter (online certified mail)
4. Wait 30 days for investigation
5. Send method of verification letter
6. When it comes back verified send pre/arbitration letter

 Letter Example:

Experian

Their address

Your account number.                                                    Date

Subject: Experian Failing to Conduct Proper Investigations and

Verifications

Complaint 1:

I am filing this complaint because Experian has been negligent in conducting my consumer disputes as stated in the CFPB case and I am demanding that Experian conducts a thorough investigation and if they find an item to be incomplete or inaccurate or cannot be verified to delete the item from my file per 15 U.S. Code 1681(i)

Complaint 2:

I am filing this complaint because Experian has failed to properly investigate and verify accounts that I have disputed as inaccurate on my credit report. Despite providing detailed information and evidence to support my disputes, Experian continues to report inaccurate information without demonstrating that the information has been thoroughly reviewed or verified as required under the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681i.

Experian's failure to comply with the FCRA is causing me significant harm, as these inaccuracies are negatively impacting my credit profile and financial well-being. Specifically:

1. Experian has failed to notify me of the methods used to verify the disputed accounts.
2. Experian has not provided any proof from the furnishers of the disputed information to confirm its accuracy.
3. My disputes have been dismissed without proper reinvestigation, as required by law.

I request that the Consumer Financial Protection Bureau intervene to ensure that Experian adheres to its legal obligations under the FCRA. I demand the following actions:

• A proper investigation of all disputed accounts.
• Written documentation of the verification method used

Immediate correction or deletion of any unverifiable or inaccurate information.

Experian's neglect of its investigative duties is unacceptable and has caused me unnecessary financial and emotional distress.

Thank you for your attention to this matter.

(Name date and signature)

Getting To The Bag 

When you go into collections, debt collectors are buying a debt, but they can't buy your info. Use:  

15 U.S. Code 1692(c) - tell them to cease communication via credit report

15 U.S. Code 1692(c) - tell them you never gave them consent to speak to you

15 U.S.code 1692(d)(2) - causing harm to your reputation via credit report getting denied credit, housing, etc

1692 C means to cease and desist ALL communications. Conveying of information through ANY medium. Your Credit Report is a medium.

2 Violations that are lawsuit worthy:

1. Violating cease and decist
2. Infringing upon your right to privacy 2xs. The first time reporting to an unaffiliated 3rd party and the second infringing upon your right to privacy without your consent

Tap in For other dispute letters and instructions to clean up credit

***Disclaimer: 

Always seek professional and legal advice on matters of credit and legal matters from the likes of CPAs, Credit Professionals and Lawyers

Until Next Time- Stay Fly!

-A Fly Gemini

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