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Equifax Reporting of Outdated Debts FCRA Class Action

This class action sues Equifax Information Services, LLC for publishing “adverse, outdated, and inaccurate information related to illegal payday loans” in credit reports. It brings suit under the Fair Credit Reporting Act (FCRA), which is intended to prevent erroneous or inaccurate reporting. The complaint alleges that a company called Midwest Recovery “reported these unenforceable debts … in order to coerce repayment of the debts.”

The FCRA forbids consumer reporting agencies from reporting debts that date back more than seven years before the date of the report. However, the complaint claims that Midwest “re-aged” debts—that is, it changed the date of delinquency so that they seemed to be newer debts and were not aged off of the debtors’ credit reports.

The Federal Trade Commission (FTC) has started an action against Midwest for putting “bogus or highly questionable debts onto consumers’ credit reports to coerce them to pay the debts.” The FTC’s complaint alleges that Midwest “parked fake debt or questionable debts on people’s credit reports and then waited for the to notice the damage when they were trying to get a loan or a job” so that they could “coerce people to pay debts they didn’t owe or didn’t recognize.” Midwest has recovered over $24 million from these illegitimate debts.

Consumer reporting agencies, like Equifax, are supposed to “maintain reasonable procedures designed to avoid violations” of the seven-year rule. The complaint alleges that if Equifax had had reasonable procedures in place, it would have discovered what Midwest was doing.

The debts at issue were cancelled as a result of a class action settlement with a number of payday lender entities, such as Great Plains, Plain Green, and MobiLoans. While Equifax did delete accounts when some of the consumers disputed the items, the complaint alleges, they continued to report the same information for others.

The four classes defined for this action are named after sections of the FCRA.

  • The 1681c Class and the 1681e(a) Class both include all persons in the US (1) for whom Equifax provided a consumer report (2) from October 4, 2019 on through the time this class action is pending (3) where the report contained an account with Midwest Recovery (4) where the original creditor for the loan was Plain Green, Great Plains, or MobiLoans, and (3) where the consumer’s delinquency began more than seven and a half years before the date of the report.
  • The 1681e(b) Class is all persons in the US (1) for whom Equifax has provided a consumer report (2) since December 19, 2019, (3) which contains an account where the original creditor for the loan was Plain Green, Great Plains, or MobiLoans.
  • The 1785.13(b) Class is all persons in California (1) for whom Equifax has provided a consumer report (2) since December 19, 2019, (3) which contains an account where the original creditor for the loan was Plain Green, Great Plains, or MobiLoans.
Article Type: Lawsuit
Topic: Loans

Most Recent Case Event

Equifax Reporting of Outdated Debts FCRA Complaint

October 4, 2021

This class action sues Equifax Information Services, LLC for publishing “adverse, outdated, and inaccurate information related to illegal payday loans” in credit reports. It brings suit under the Fair Credit Reporting Act (FCRA), which is intended to prevent erroneous or inaccurate reporting. The complaint alleges that a company called Midwest Recovery “reported these unenforceable debts … in order to coerce repayment of the debts.”

Equifax Reporting of Outdated Debts FCRA Complaint

Case Event History

Equifax Reporting of Outdated Debts FCRA Complaint

October 4, 2021

This class action sues Equifax Information Services, LLC for publishing “adverse, outdated, and inaccurate information related to illegal payday loans” in credit reports. It brings suit under the Fair Credit Reporting Act (FCRA), which is intended to prevent erroneous or inaccurate reporting. The complaint alleges that a company called Midwest Recovery “reported these unenforceable debts … in order to coerce repayment of the debts.”

Equifax Reporting of Outdated Debts FCRA Complaint
Tags: Discharged/invalid debts on credit report, Erroneous Information on Report, FCRA, Providing Outdated Information on Reports