Experian Faces Class Action Lawsuit Over Alleged FCRA Violations

A class action lawsuit against Experian was filed in the U.S. District Courts in the North Carolina Middle District. The plaintiff, Eric Keller, alleges that Experian Information Solutions, Inc., a credit reporting agency, violated the Fair Credit Reporting Act (FCRA) by failing to investigate and process mail received from the plaintiff and other members of the class. The plaintiff claims that Experian's suspicious mail policy was unreasonable and that their practices were not uniformly applied across all mail they received.

What Led to the Lawsuit?

According to the lawsuit, the plaintiff, Eric Keller, and other class members sent mail to Experian to dispute inaccuracies in their credit reports. However, instead of conducting a free reinvestigation as required by the FCRA, Experian allegedly failed to process the mail and sent back a form letter stating that the mail was suspicious.

The plaintiff alleges that this practice was unreasonable and that Experian failed to apply their procedures uniformly across all mail they received. This, according to the plaintiff, is a violation of the FCRA.

What is the Fair Credit Reporting Act (FCRA)?

The Fair Credit Reporting Act (FCRA) is a federal law that regulates the collection, dissemination, and use of consumer information, including consumer credit information. The FCRA promotes the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. It was enacted to protect consumers from the willful and/or negligent inclusion of inaccurate information in their credit reports.

Under the FCRA, credit reporting agencies such as Experian are required to maintain reasonable procedures to ensure the maximum possible accuracy of the information contained in the report. They are also required to conduct a free reinvestigation when they receive a dispute from a consumer.

Who are the Class Members?

The class members in this case are all natural persons in the United States who made a request to Experian to provide a file disclosure and/or investigate alleged inaccuracies on their credit disclosure within the two-year period preceding the filing of this action and during its pendency. These individuals allegedly received the same suspicious mail response form letter from Experian.

The class members are spread across all states in the United States and have allegedly experienced the same violations of the FCRA by Experian.

What Damages is the Plaintiff Seeking?

The plaintiff is seeking statutory penalties, actual damages, punitive damages, reasonable attorney"s fees and costs, pre- and post-judgment interest, and appropriate equitable relief, including the correction of the plaintiff"s credit score. While the exact dollar amount is not stated in the complaint, it is expected to be at least five million dollars.

The plaintiff is also demanding a jury trial on all issues triable and is seeking judgment in his favor and against Experian.

What Could be the Next Steps in the Case?

As the case progresses, Experian will likely file a response to the allegations. The court will then decide whether the case should proceed as a class action. If it does, notices will be sent to potential class members who will have the option to join the lawsuit.

Ultimately, the case could go to trial, be dismissed, or be settled out of court. Regardless of the outcome, this case serves as a reminder of the importance of the FCRA and the obligations it places on credit reporting agencies.