U.S. PIRG Consumer Blog: Equifax Chief Calls Free Credit Reports Unconstitutional -- Yikes `:>)

If it were true, Equifax would have sued to overturn the Fair Credit Reporting Act (FCRA). But Mr. Chapman's lawyers probably told him that the DC Circuit, US Court of Appeals recently found the FCRA constitutional -- rejecting a plethora of unsubstantiated constitutionality claims and finding that the government's interest in "protecting the privacy of consumer credit information is substantial." That was just a few years ago in a case brought by his fellow credit bureau Trans Union. [Trans Union Corp. v. FTC (Trans Union I), 245 F.3d 809, reh'g denied, 267 F.3d 1138 (D.C. Cir. 2001), cert. denied, 122 S. Ct. 2386 (June 10, 2002).]

The whole notion that consumers are customers of credit bureaus is spurious as well. What consumers are to the bureaus is two things. First, some consumers have recently become a revenue stream as they purchase over-priced products, like credit monitoring, that should also be free. Second, all consumers with files are data subjects. The products (credit reports) that bureaus sell to their actual customers (businesses) are derived from consumer data.

Congress, in granting the annual free report right (after 7 states already had done so), finally recognized that data subjects deserve to know about and correct products that are based on their lives. Inaccurate credit reports hurt consumers in the marketplace and credit issued sloppily to identity thieves hurts consumers as well. Further, credit bureaus have a duty under the FCRA to ensure "maximum possible accuracy" and the consumer self-audit through the "free" report helps the bureaus accomplish that Congressionally-mandated and constitutional requirement.

Another reason it is spurious of the credit bureaus to consider consumers as customers is they've never actually treated us as customers (just cash streams) -- have you ever been trapped in one of their voice mail jails? Indeed, in 2000, the Federal Trade Commission fined the big three bureaus a total of $2.5 million for failing to have enough customer service staff to answer the phones and help their "customers." A few years later, in 2003, they fined just one of those three bureaus, one named Equifax, an additional $250,000 for violating that consent decree-- for its continued failure to answer the phones.

In referring to the 2003 legislation known as the FACT Act (PIRG's FACT Act archive), which established annual free credit reports and other identity theft protections at the unacceptable price of permanent preemption of most state authority to regulate the industry, Chapman's written speech claims that "You should know that before this new legislation was ever considered, we provided credit reports, free of charge, to those denied credit, victims of id theft, welfare recipients and to the unemployed…that’s just responsible corporate citizenship…it wasn’t required, we just did it."

Actually it was required. Since 1971, when the original act passed, Congress had required credit bureaus to provide free reports after credit denial. Since 1996, Congress had also required free reports to the indigent, the unemployed looking for work, and anyone who suspected fraud.

Oh, according to published reports, Chapman did say in the speech, apparently in answers to questions, that we should move on from using Social Security Numbers as unique identifiers. That's a shocking statement from one of the bureaus and one we agree with. More to follow in this blog on the wrongheadedness of using SSNs to link all the bits and pieces of our financial, medical, workplace and other experiences together.

Consumers need to check their credit report, Now! I have been trying for almost 12 years to clear up many erroneous credit problems that Scotiabank finally admitted their failure in their reporting accuracy to the credit bureau.

These errors consisted of several R9's, I9's, duplicate accounts, extra accounts, inacurrate debt amounts, unknown inquiries, unapproved inquiries, improper investigations, misleading conversations, untruths in their explainations, stalling and being passed on and on through several Equifax respresentatives. Not to mention, the several 45+ minutes hold times during phone calls, and...

Equifax was faulted for not responding for several years to my complaints! This directly reflected on me through the Royal Bank and CIBC Bank, both calling me a liar and TD Canada Trust had a negative comment about my credit history attached to their computer file.

These Big Business companies have stolen my identity for over 10 years and that has seriously disrupted my life, my family, my finances, my business, my partners, and my friends. We need tougher legislation against Banks and Credit Bureaus to prevent errors from stealing our identity and destroying our lives.

http://www.rnr-online.com/creditreporterrors.html

Credit Report History Timeline

A crusade forced upon him almost 12 years ago ...

A fair plead for a complete recovery from both defendant's repeated negligence!

Equifax and Scotia Bank have VIOLATED me repeatedly since Jan 1994. These 2 Big Businesses stole my identity and misused it in several different ways and it was misrepresented many, many times. 2 1/2 years into these errors and investigations, Equifax added their own bad credit to me after collecting debt from rightful owner.

Their many investigations failed to fix the errors. ATLEAST ONE TIME, PURPOSELY! When Equifax and Bank of Nova Scotia finally admitted a problem, their ever-changing story had them blame each other, then they blamed their computer system, then they blamed human error and between all of these, they tried to blame me.

7 years of their lies, improper investigations, misleading conversations, untruths in their explanations, and being passed on and on through several Equifax representatives wasting my time. Not to mention, the several 45+ minutes hold times during phone calls.

**UPDATE April 26th 2005** Justice Day and the judicial system have failed me terribly. In Justice Day and his BAD VERDICT finished off by taking away my dignity and embarrassing me from everyone and this whole situation for the past 12 years.

In Justice Day blames me for taking this matter to court. In Justice Day had NO IDEA who Equifax is and WHAT ROLE Equifax plays in the financial community, therefore, his knowledge was very limited and he should not have been able to sit behind the bench in this litigation. In Justice Day said that he was, and I quote 'suffering from a seniors moment' many times throughout the 5-day trial. In Justice Day forced me to wait 6 months for the initial disappointing verdict, 4 months for a meeting on costs and more then 6 months for a verdict on costs...and this is what I received -- I WON 10k? in this so-called litigation BUT I LOST ($150k) because I wanted truth and justice for the discrimination, embarrassment and mental abuse I have suffered from the defendants, the ombudsman for lack of investigation, the lawyers and now, Justice Day.

Written by: Robert Neil Clark ->
( no "e" on Clark and no "JR" anywhere! )

Victimized Repeatedly and Now Forever!

Equifax created a credit profile for someone else and gave him my phone number - something that is easily checked by contacting the phone company or asking to see a fax of a recent phone bill. This guy now owes money to everyone and his creditors are calling my phone number from 7:00am in the morning till 10:00 pm at night - 15-20 calls a day! Equifax doesn't care that they have linked the wrong phone # to an account. The only choice I've had is to unplug my phone.

I intensly dislike private companies that send out erronious data. I AM 76 YEARS old and had dinner with a friend of mine an X VP of GM. His son had him get his credit rport for the fun of it. He has not had a mortgage or outstanding bill in 40 years, his report was marginal at best. I tried the same thing an low and behold I had a marginal report. I have adaquate liguid assets and absolutly no debt. My report "poor credit to much debt and not much on record of me". How can banks and financial institutions rely on this data?? I believe I will start a class action law suit, any one want to join me???

I totally agree with what you're saying. I wish more people felt this way and

took the time to express themselves. Keep up the great work.

Chris
http://www.reportcredit2u.com

I am beginning to hate credit bureaus. I feel thay are costing consumers, probably millions a year on higher interest rates because of errors on credit reports. I just read that overdue library books or outstanding parking fines can effect your score. Insurance companies are charging highr premeiums because of your scores, and the credit burreaus will not even tell you how your credit score is calculated.

Equifax? they should change the name to Equifux. They fuxed me over and over and over again blaming the E-OSCAR system, electronic tape reporting yada yada yada..They have vilolated my rights under FCRA and could frankly give a rats a**. Here is a brief summation. Technology has made credit reporting difficult, impossible and FAR LESS ACCURATE. In August Equifax reported appx 60,000 consumers late utilizing the electronic tape of several Mortgage lenders. The tape they reported was actually the "test" tape. A few days later this error was discovered and Equifax, the president and CEO Mr. Chapmen issued emails to those affected, and proclaimed the problem would be corrected. This was August 2005..................My credit Score dropped 120 points, several credit lines were yanked and interest on my Credit cards spiked. I submitted disputes to Equifax in August, December and January. The lender answered the disputes on each occassion. I spent over 500 hours on the phone, I faxed in letters, I wrote requests to fix my report. On every occassion I was told my report was "fixed" and accurate. I pulled credit on 1/30/2006 guess what....? Three derogatories, still reporting still late still Equifuxed. I call in again ask for a Supervisor. The rep states " I follow the same protocal as a Supervisor would , let me see if I can help you" I proceed with a detailed description of my plight, she responds..." I can only tell you how to file a dispute and where to send it" I quip, ok let me spaek to a Supervisor. I re submit my claim and the supervisor suggests she simply call the creditor and ask directly for the payment history....WOW, that would be INCREDIBLE, she continues "yes , I will call the mortgage company and we will update the report...." I have been trying since August , I repeat, if you can do that it would be tremendous. I am punished, I suffer financially for Equifux mistake, no reprocussions, no punishment, measely government fines.. etc.. This is Completely out of control and this will eventually cripple our economy. What happens whan more "electronic" errors are made with seemingly nobody able to FIX the problem. He says its the bank mis reporting the Bank says it is the credit agency, the credit agency blames bad data, then blames me for investigated something that already has been investigated..OH I could keep going but my head is spinning. Please everyone , if you have been a victim of a credit bureau bungle, lets SUE SUE SUE class ACTION, LETS TEACH EQUIFUX A LESSON

This is still true today. It is 2.57pm in Texas and I just called Equifax to ask a question about an account that is being reported illegally and the computer hung-up on me twice. Also, in Texas as well as several other states, we are redirected to CSC Credit Services and they aren't even open on Fridays. That customer service.

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