Experian, TransUnion and Equifax; the three companies that hold the key to every American’s credit score and credit report, was named in a lawsuit filed yesterday. The lawsuit was filed by the Law offices of Kenneth Eade in Central District of California Court. The case alleged that the three credit reporting agencies failed to remove negative information about consumers even after the creditor in question demanded the information be removed from credit reports.
The lawsuit alleged that the three named credit reporting agencies are not in compliance with the Fair Credit Reporting Act. The Fair Credit Reporting Act was a law passed in the 1970s that aimed to balance and police the credit reporting agencies to ensure that consumers and credit granters were both able to accurately utilize their rights. The act states that all consumers have the right dispute incomplete or inaccurate information on their credit report. Under the law the credit reporting agencies must launch an investigation and if the information can not be verified they must remove the information from the credit report. This procedure is commonly utilized when negative information exists on a credit report.
In the lawsuit filed by Kenneth Eade there are several companies who were sued by consumers to have negative information removed from their credit reports. Under the settlement the companies demanded negative information be removed by the credit reporting agencies listed above. The information was not removed in a timely manner and it is alleged that the credit reporting agencies are not adhering to the procedures laid out in the Fair Credit Reporting Act as necessary. Under the act all three reporting agencies must exercise caution and due diligence in investigating claims of inaccurate information. Many believe the companies are not standing by those standards and are simply allowing too many credit issues to fall to the wayside.
The lawsuit aims to force the three reporting agencies to accurately, efficiently and effectively follow the procedures already laid down by the government for them. It can be assumed that because these three businesses, effectively, handle the entire U.S. populations credit that few people understand what their rights against such large companies are. Many consumers, suggests Eade, operate on the assumption that they have no rights or protocols against such companies because they do not know where to begin with calling them out on inconsistencies and discrepancies.
The Fair Credit Reporting Act also entitles all citizens to one free credit report per year. Consumers are also entitled to know their credit scores and to file complaints about inaccuracies either via mail or through online forms. Both creditors and credit recipients are protected under the Fair Credit Reporting Act. These safeguards were put in place to help consumers access their personal information and to gain a better understanding of their personal financial situation and credit worthiness. However, in an age were identity theft is a true problem it is becoming even more important to have credit reporting agencies including Experian, Transunion and Equfax to follow the rules set forth for them. Speedy removal of inconsistencies and flagging of credit reports are necessary in order to safeguard consumers and their personal information.