A California resident has filed a class-action lawsuit against Equifax, alleging the credit bureau is violating the Fair Credit Reporting Act by reporting that individuals had monthly payments due on debts which were actually paid off, lowering those individuals’ credit scores.
A copy of the complaint in Alikahni v. Equifax can be accessed by clicking here.
In the complaint, the plaintiff alleges he had zero balances on eight different tradelines, and his credit report shows a $0 balance, but the defendant is still reporting monthly payments owed to the creditors.
“By reporting continuing monthly payments as opposed to a $0 monthly payment, Defendant misrepresents Plaintiff’s monthly financial obligations and gives the false impression that Plaintiff has less funds available to satisfy the new credit currently being applied for,” the complaint alleges.
In seeking a class-action, the plaintiff is looking to include any other individuals within the U.S. who have tradelines with a zero balance or which have been paid in full or closed, but where the defendant is reporting a monthly payment obligation.
The plaintiff is alleging the defendant engaged in willful and negligent failure to employ reasonable procedures to ensure maximum possible accuracy of credit reports, which is a violation of Section 1681e(b) of the FCRA.
