State Farm Bank has come under fire for illegally pulling credit reports on consumers and reporting inaccurate information – both of which have the potential to damage a person’s credit. Now, a class action lawsuit could be started.
How Do You Know All This?
In late 2018, the Consumer Financial Protection Bureau released the findings of its investigation into State Farm Bank and found that the bank had repeatedly violated federal law regarding consumer reports.
What You Can Do
If you’re a customer of State Farm Bank and want to know more about how this affects you, fill out the form on this page. One of the attorneys handling this investigation may then reach out to you directly.
How Can a Class Action Lawsuit Help?
A successful case can provide remedy to people whose credit scores were harmed because of State Farm Bank’s illegal credit reporting practices.
If you opened a State Farm Bank credit card or refinanced a car loan through the bank, attorneys working with ClassAction.org would like to speak with you.
It’s possible that the bank pulled your credit report without any good reason, reported and/or refused to correct inaccurate information about you, or even opened a credit card in your name without you knowing about it. Read on for more.
What’s Going On?
In late 2018, the Consumer Financial Protection Bureau (CFPB) announced that it had concluded its investigation into the credit reporting activities of State Farm Bank and found the company engaged in a number of illegal practices, detailed below, that have the potential to adversely affect a person’s credit score.
Pulling credit reports without permission or reason for doing so
According to the CFPB, State Farm Bank ran consumer reports on people without any permissible reason for doing so. In some cases, the bank initiated credit applications for the wrong people by incorrectly entering customer information or selecting the wrong person from a list of consumers in its application system. As a result, the bank obtained consumer reports and generated credit inquiries for the wrong people – likely without them ever knowing.
Further, it was discovered that State Farm Bank even initiated vehicle loan applications for people who never applied for a loan – all “for the purpose of soliciting these customers.” When this happened, a credit inquiry was triggered for that individual.
Reporting Inaccurate Credit Information
The CFPB also found that State Farm Bank was furnishing inaccurate information to consumer reporting agencies, which may include Experian, Equifax and TransUnion.
The bank has been accused of:
Furnishing account information for the wrong person
Reporting current accounts as delinquent
Reporting inaccurate payment histories and past-due amounts
State Farm Bank reported this inaccurate information despite having – and knowing that it had – the correct information in its own credit applications, loan files, or “payment system-of-records,” the CFPB said.
Failing to Correct Errors, Notify of Disputes
State Farm Bank has also been accused of failing to notify agencies when a consumer disputed a piece of information in his or her credit report and dragging its feet when it comes to correcting credit reporting errors. It reportedly took State Farm Bank “months” to correct inaccuracies in consumers’ credit reports, even when people made repeated requests to have the errors fixed.
How Do I Know If This Happened to Me?
Your best bet is to look at your credit report. It may show a hard inquiry, loan or credit card from State Farm Bank – and you may not notice this unless you go looking for it. Attorneys working with ClassAction.org are also willing to take a look at your credit report to determine whether you were affected by State Farm’s illegal activity.
How Can a Class Action Lawsuit Help?
While you may have heard that State Farm Bank settled the claims against it, keep in mind that this settlement pertains only to the CFPB investigation – and not to any class action lawsuit. The CFPB settlement offers no compensation or remedy for people who had their credit scores impacted or who were otherwise affected by State Farm Bank’s practices. This recourse will need to be sought through a class action lawsuit – but attorneys need your help before they can get one on file.
If you suspect you were affected by State Farm Bank’s illegal credit reporting activity, fill out the form on this page. One of the attorneys handling this investigation may then reach out to you directly to explain how you may have been harmed by State Farm Bank and what you can do about it.