I’m not sure why the following lawsuit popped up on my radar this morning. Still, it’s a good example of a consumer running into a credit reporting roadblock, trying to resolve it, but having to turn to the courts to attempt a fix.
According to the complaint, the consumer, Diaz, has been struggling with Equifax to report a Navient loan correctly.
Navient is reporting on the Equifax credit report that Diaz owes $72,000. Diaz claims the account is closed and has a zero dollar balance.
The complaint states, “On February 18, 2020, Plaintiff obtained her Equifax credit disclosure. While reviewing her credit disclosure, Plaintiff noticed the Errant Tradeline inaccurately reporting with an erroneous scheduled monthly payment amount.
On or about June 5, 2020, Plaintiff submitted a letter to Equifax disputing the Errant Tradelines.
In her dispute letter, Plaintiff explained that the account reflected by the Errant Tradeline was closed. Plaintiff no longer has an obligation to make monthly payment to Navient. Plaintiff asked Equifax to report the Errant Tradeline with the monthly payment amount of $0.00.
Equifax forwarded Plaintiff’s consumer dispute to Navient.
Navient received Plaintiff’s consumer dispute from Equifax.
Navient and Equifax did not consult the Credit Reporting Resource Guide as part of its investigation of Plaintiff’s dispute.
Plaintiff had not received Equifax’s investigation results. Therefore, on August 25, 2020, Plaintiff obtained her Equifax credit disclosure, which showed that Equifax and Navient failed or refused to report the scheduled monthly payment as $0.00 on the Errant Tradeline.”
I’ll keep an eye on this case and see how it all plays out. If the allegations made are factual, it sure seems like Navient failed to conduct a proper credit report dispute investigation and has some potential exposure under the Fair Credit Reporting Act.
More to come, but for now, here is the complaint.