LexisNexis, Experian Included Inaccurate Bankruptcy Info in Consumer Reports, Class Action Says
by Erin Shaak
Alvarado v. LexisNexis Risk Data Management, Inc. et al.
Filed: January 13, 2022 ◆§ 3:22-cv-00050
LexisNexis and Experian have erroneously furnished and included negative information in consumers’ credit reports, even after it’s been disputed, a lawsuit alleges.
California
LexisNexis Risk Data Management and Experian Information Solutions face a proposed class action that alleges the companies have erroneously furnished and included negative information in consumers’ credit reports and failed to properly investigate the data after it’s been disputed.
The plaintiff, a San Diego County, California resident, claims that the defendants continued to include a bankruptcy in his credit report after it had been discharged, thereby preventing him from obtaining credit. Per the suit, LexisNexis, a furnisher of consumer information, and Experian, one of the major credit reporting agencies, have violated the Fair Credit Reporting Act (FCRA) by reporting inaccurate and derogatory information about consumers, failing to maintain policies to ensure the accuracy of the information they report and failing to properly investigate disputes.
“Any violations by Defendants were knowing, willful, and intentional, and Defendants did not maintain procedures reasonably adapted to avoid any such violation,” the complaint alleges.
The 23-page filing explains that the plaintiff filed for bankruptcy in April 2015 and had his bankruptcy discharged in June 2020. According to the case, a bankruptcy discharge is available via the Public Access to Court Electronic Records (PACER) system in the same manner as an initial bankruptcy filing. Therefore, the defendants were capable of achieving “virtually 100% accuracy” in reporting the status of bankruptcy cases, the lawsuit argues.
Nevertheless, LexisNexis and Experian have failed to use available resources such as PACER to find out the most accurate information about consumers’ bankruptcy cases for the purpose of including it consumer reports, the suit says.
Per the complaint, LexisNexis at some point furnished the plaintiff’s bankruptcy information to Experian but failed to report that he had received a discharge. Thus, Experian subsequently reported that the plaintiff had a non-discharged bankruptcy on his record, the suit relays.
The plaintiff says he applied for an auto loan in August 2021 and a credit card in November but was denied for each loan because of the non-discharged bankruptcy information included in his consumer report.
According to the complaint, the plaintiff disputed the inaccurate information with Experian in December 2021. The lawsuit alleges that during the course of the investigation, LexisNexis failed to check the plaintiff’s bankruptcy filing to verify its status and continued to report to Experian that the bankruptcy had not been discharged.
Moreover, the defendants both failed to contact the plaintiff for additional information to verify the status of his case, the suit says.
Per the lawsuit, Experian responded to the plaintiff’s two disputes by stating that it had certified the accuracy of the information and would not change the status of his bankruptcy.
The case alleges the defendants intentionally furnished and republished the inaccurate information about the plaintiff despite his dispute.
The plaintiff looks to represent the following two classes:
“All persons within the United States who filed a Chapter 13 or Chapter 7 bankruptcy case where one or more of the named Defendants furnished or reported that the bankruptcy case was not discharged when in fact it was discharged, within two years prior to the filing of the Complaint.”
“All persons within the United States who filed a Chapter 13 or Chapter 7 bankruptcy case where the individual disputed inaccurate reporting of a bankruptcy discharge, and one or more of the named Defendants concluded after an investigation or re-investigation that the bankruptcy case was not discharged when in fact it was discharged, within two years prior to the filing of the Complaint.”
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