Interesting Lawsuit Against TransUnion on Credit Dispute With Wells Fargo

On December 12, 2018, David Lacks Sued TransUnion and Wells Fargo Home Mortgage over what appears to be a very irritating situation after staying current on his home mortgage.

Lacks filed for a Chapter 7 bankruptcy but reaffirmed his home mortgage with Wells Fargo and continued making his payments. His mortgage was not discharged in bankruptcy.

The complaint says, “That report contained erroneous information as provided by Wells Fargo. Specifically, the TransUnion credit report failed to make any reference to the Reaffirmation Agreement attached hereto, errantly states the account was closed, did not include any information necessary to reflect the ongoing and timely payments being paid to Wells Fargo by Lacks, yet suggests the obligation was discharged via his Chapter 7 bankruptcy proceedings.”

The allegation is Wells Fargo and TransUnion intentionally failed to report the true status of the loan. “This action is based on Defendants’ false reporting on Plaintiff’s credit reports and willful refusal to follow reasonable procedures and conduct reasonable reinvestigations with respect to such information.”

Lacks appears to have done all the correct things to get this issue fixed. He disputed the item on his TransUnion credit report, who was supposed to investigate the error. Allegedly TransUnion and Wells Fargo took no action to correct the discrepancy.

According to the lawsuit, “only six days after the mailing of his dispute letter, Trans Union advised Lacks that it had researched his dispute and the current status was being reported correctly. However, Trans Union merely provided a copy of the tradeline that reproduced several of the the errors identified by Lacks in his original dispute letter. Specifically, the Wells Fargo tradeline still failed to provide any information relative to the appropriate status of the obligation, the fact it was not discharged but reaffirmed, that Lacks continues to make timely payments as contractually obligated, and still states the account is closed.”

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An allegation raised is that TransUnion either never notified Wells Fargo or Wells Fargo failed to correct the erroneous information.

Following the dispute, TransUnion is said to have informed Lacks he could receive a “description of the procedure used to determine the accuracy and completeness of the information.”

What lacks is said to have received in return to his request for information on how the item was disputed was a “nonresponsive form letter.”

The complaint states, “TransUnion did not provide a description of the procedures Trans Union actually used to determine the accuracy and completeness of the disputed Wells Fargo Mortgage information, because Trans Union never attempted to determine the accuracy and completeness of the disputed Wells Fargo Mortgage information.”

I realize that both TransUnion and Wells Fargo must be buried in dispute requests. But if the process failed Lacks, who continues to make his payments, I can certainly understand the frustration and attempt to get the companies to just correctly report the true status of his account.

You can read the full complaint below.

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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