Equifax, Toyota Motor Credit Disputed Items on Report FCRA Class Action

Consumer reports are used more and more often, just as identity theft is becoming more and more common. It’s therefore important that credit information be kept accurate and that false items be promptly investigated and removed from credit reports. This class action brings suit against Equifax Information Services, LLC and Toyota Motor Credit Corporation, under the Fair Credit Reporting Act (FCRA), alleging that the companies are allowing fraudulent entries to remain in consumers’ credit files. 

The class for this action is all persons whom Equifax’s and Toyota’s records show live in New York, who notified Equifax of a dispute of an account appearing in their Equifax credit files and where Equifax did not include the statement of dispute in subsequent credit reports, between December 9, 2017 and the date of judgment in this case.

Plaintiff Carolina Guzman claims that her sister obtained her personal credit information and had her boyfriend open an account for himself with Toyota. The complaint says she told Equifax in July 2019 that she had not opened the account and had not authorized anyone else to open it in her name. The complaint alleges that Equifax likely notified Toyota of the dispute over the item. In any event, Guzman also notified Toyota of the dispute.

The US Court of Appeals for the Fourth Circuit has held that the FCRA requires that furnishers of credit like Toyota should make detailed examinations of the underlying documents in transactions in the case of a dispute.

The complaint says, “Nevertheless, Defendant Toyota failed to investigate the information properly and failed to retport the account to Equifax as fraudulent.” That’s not all. Toyota continued to send out bills on the fraudulent account with finance and late charges. In fact, the complaint says, “Toyota continued to report the account such that [Guzman’s] credit report began showing derogatory remarks, including ‘Charge Off’ on the Toyota Motor Credit account.”

As to Equifax, originally it notified Guzman that it had begun an investigation of the disputed item. However, it later said, as quoted by the complaint, that it had “verified that this item belongs to you” and said that the item would remain on her credit report.

On September 19, 2019, Guzman filed a statement of dispute with Equifax.

The FCRA is quoted by the complaint as saying that when a statement of dispute is filed, “the consumer reporting agency shall, in any subsequent consumer report containing the information in question, clearly note that it is disputed by the consumer and provide either the consumer’s statement or a clear and accurate codification or summary thereof.”

However, when Guzman obtained her credit report from Equifax in November 2019, she saw that the entry for Toyota did not contain any information showing that it was disputed.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Equifax, Toyota Motor Credit Disputed Items on Report FCRA Complaint

December 9, 2019

Consumer reports are used more and more often, just as identity theft is becoming more and more common. It’s therefore important that credit information be kept accurate and that false items be promptly investigated and removed from credit reports. This class action brings suit against Equifax Information Services, LLC and Toyota Motor Credit Corporation, under the Fair Credit Reporting Act (FCRA), alleging that the companies are allowing fraudulent entries to remain in consumers’ credit files. 

equifax_toyota_fcra_complaint.pdf

Case Event History

Equifax, Toyota Motor Credit Disputed Items on Report FCRA Complaint

December 9, 2019

Consumer reports are used more and more often, just as identity theft is becoming more and more common. It’s therefore important that credit information be kept accurate and that false items be promptly investigated and removed from credit reports. This class action brings suit against Equifax Information Services, LLC and Toyota Motor Credit Corporation, under the Fair Credit Reporting Act (FCRA), alleging that the companies are allowing fraudulent entries to remain in consumers’ credit files. 

equifax_toyota_fcra_complaint.pdf
Tags: Credit Reports, Discharged/invalid debts on credit report, Failure to Mark Debt as Disputed