Equifax Pays Millions to Settle Illegal Credit Reporting Claims Related to Civil Judgments and Tax Liens
Equifax recently settled multiple class action lawsuits filed under the Fair Credit Reporting Act alleging it failed to update civil judgments and tax liens. The settlement prohibits Equifax from reporting any civil judgment or tax lien records for five years, with limited exceptions. The settlement also requires Equifax to establish an independent claims program for impacted consumers.
While this is great news for many consumers who had judgments and liens removed from their credit reports, this does not mean that consumers’ credit profiles will be free of errors. Nevada consumers should continue to check their credit reports using www.annualcreditreport.com to ensure the information is accurate and up-to-date. If you find any inaccurate information in your credit report, you should consult with a Las Vegas credit attorney to discuss your rights under federal law.
The U.S. Supreme court recently heard arguments in Obduskey v. McCarthy, a Tenth Circuit case finding that parties engaged in nonjudicial foreclosure proceedings are not “debt collectors” under the federal Fair Debt Collection Practices Act (“FDCPA”). Under the FDCPA, a “debt collector” is any party whose principal purpose is the collection of defaulted consumer debts, or who regularly collects or attempts to collect defaulted consumer debts.
In Obduskey, the Tenth Circuit found that nonjudicial foreclosure proceedings are attempts to enforce security interests as opposed to collecting money from a consumer. In making this ruling, the Tenth Circuit joined the Ninth Circuit, which found that a nonjudicial foreclosure is not collection activity because the purpose of a foreclosure is to retake and resell the security and not to collect money from the borrower. The Supreme Court’s ruling will provide lower courts with guidance regarding the scope of the FDCPA as it relates to mortgage foreclosure law.
If you are a victim of illegal debt collection efforts, including threats, harassment, or deception, you may have claims under the FDCPA. These claims can be brought at no out-of-pocket cost to you because the debt collector is required to pay your attorney’s fees and costs if you prevail. You may also recover up to $1,000 in damages for a successful FDCPA claim. Contact a consumer debt collection lawyer to discuss your legal rights.
A new report from WalletHub lists Nevada as the most vulnerable state for identity theft and fraud. Nevada also ranked 2nd regarding median loss amount due to fraud.
This survey demonstrates that fraud and identity theft in Nevada, and Las Vegas especially, must be addressed starting with better credit education. To ensure the information is accurate and up-to-date, Las Vegas consumers should pull their credit reports regularly. If you notice fraudulent information, the first step is to initiate a "fraud alert" to prevent future damage. Next, Las Vegas consumers should visit www.Identitytheft.gov to fill out an FTC Identity Theft Victim’s Report and submit the report to the credit bureaus along with information about each fraudulent entry.
The data furnishers and national credit bureaus have 4 days to block the fraudulent information, and 30 days to investigate and remove it from your reports permanently. If these companies fail to do so, you have a legal claim under federal law that includes your attorney’s fees and costs as part of your damages. These companies must also cover your out-of-pocket damages, including loan denials, loss of credit limits, and other financial losses. If you’re an identity theft victim, contact a Las Vegas identity theft attorney as soon as possible to discuss your legal options.
In the wake of the recent Equifax data breach, a new federal law will allow U.S. consumers, including here in Las Vegas, to freeze and unfreeze their credit reports with the three major credit bureaus (Equifax, Experian, and Trans Union) for free. It used to cost consumers $3 to $12 per bureau to freeze and unfreeze credit reports.
A credit freeze blocks lenders from pulling a consumer’s credit report to prevent identity thieves from opening new accounts in the consumer’s name. Once frozen, the consumer can unfreeze the account, either temporarily or permanently, to apply for loans or other types of credit.
The new law also extends short-term fraud alerts from 90 days to one year. A fraud alert forces lenders to contact a consumer before extending credit to ensure the loan application is not fraudulent.
If you are the victim of identity theft, you should reach out to the credit bureaus and demand a credit freeze or fraud alert immediately. You should also speak to a Las Vegas identity theft lawyer about your rights under federal law against the credit bureaus and creditors if they fail to remove fraudulent or inaccurate information from your reports.
According to a recent study by Javelin Strategy & Research, more than 1 million U.S. children were victims of identity theft in 2017, leading to $2.6 billion in losses and families paying over $540 million out of pocket. In light of these staggering figures, the Federal Trade Commission has implemented a new “Child Identity Theft” option for those reporting ID theft through www.identitytheft.gov. The website also guides parents through the process of checking and freezing their child’s credit profiles for free and shows how to obtain credit reports through the major credit bureaus (Equifax, Experian, and Trans Union).
In general, children should not have credit reports unless they are authorized users on their parent or guardian’s accounts. If your child has a credit profile, be sure to report the identity theft through www.identitytheft.gov and use the report to dispute in writing with the credit bureaus.
If the credit bureaus and lenders fail to remove the fraudulent reporting from your child’s credit profiles within 30 days, you will have a claim on the child's behalf under federal law. The law allows consumers to bring claims for no out-of-pocket expense because the defendants are required to pay your attorney’s fees and costs as part of your claim, along with potential damages to you, if you are successful. If you or your children are victims of identity theft, you should contact a Las Vegas identity theft attorney to discuss your rights under the law.
Millions of U.S. consumers saw their credit scores rise due to new credit reporting guidelines implemented by the national credit bureaus (Equifax, Experian, and Trans Union). The new guidelines prompted the credit bureaus to remove all non-loan collections, such as gym memberships and traffic tickets. Consumers who had at least one of these collection accounts deleted saw an average 11-point credit score increase. The credit bureaus implemented these new rules following settlements from lawsuits by several state attorneys general, including Nevada.
The report comes from Equifax, who sampled of millions of anonymous credit reports. Equifax’s report found that 8 million consumers had collections completely removed since the new credit reporting overhaul took effect. The percentage of debts in collections reflected on consumers’ credit profiles dropped from 12.5% in the second quarter of 2017 to 9.4% in the second quarter of 2018.
While this is great news for many consumers who had collections removed from their reports, this does not mean that consumers’ credit profiles will be free of errors. Nevada consumers should continue to check their credit reports using www.annualcreditreport.com to ensure the information is accurate and up-to-date. If you find any wrong information in your credit report, you should consult with a Las Vegas credit attorney to discuss your rights under federal law.
On August 1, 2018, Senator Bill Nelson (D – FL) introduced “The Military Lending Improvement Act of 2018” to add protections to the Military Lending Act (MLA) and the Fair Debt Collection Practices Act (FDCPA). The bill proposed, among other changes, prohibiting debt collectors from threatening prosecution under the Uniform Code of Military Justice and would prevent collectors from harassing service members by contacting their commanding officers about a debt.