Lawsuit Filed Against Clarity Services Over Alleged FCRA Violations

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Clarity Services, Inc. – a subsidiary of credit reporting agency Experian – is the defendant in a proposed class action out of Florida federal court alleging violations of the Fair Credit Reporting Act (FCRA). The lawsuit claims the defendant issued an inaccurate credit report containing a “past due” balance on an illegal and void loan from payday lender Plain Green, LLC. 

The plaintiff took out a short-term installment loan of $1,600 from Plain Green in January 2018, the complaint says. According to the suit, the “sham loan” was void and uncollectible as Plain Green was an unlicensed lender in Florida and charged an unlawful annual interest rate of 317 percent—a rate the suit notes is “more than 15 times the legal interest rate under Florida law.” The lawsuit argues that Clarity Services should have known the loan was void and uncollectible, yet reported in July 2018 a “past due” balance for the allegedly unlawful loan in the plaintiff’s credit report. The report indicated that the debt was unpaid and charged off, the complaint continues, when in fact the loan was void under Florida law and “no amounts are, or ever were, due and owing.”

The proposed class action argues that the defendant violated the FCRA by “inaccurately reporting balances due to Plain Green on [proposed class members’] consumer reports, despite the fact that reasonable procedures designed to ensure the maximum possible accuracy of the information would have shown that Plain Green’s spurious loans to the [proposed class members] were void and uncollectible.”