Cases & Investigations

Experian and TransUnion Lawsuits: Inaccurate Tax Lien Reporting

CASE STATUS: Pending

Attention: Anyone who has received a consumer report from Experian or TransUnion that contained a tax lien error.

Berger Montague has filed class action complaints throughout the United States on behalf of consumers who received Experian or TransUnion consumer reports with tax lien or other public records errors. People have reported receiving consumer reports from these agencies that note paid tax liens as unpaid.  People have also reported paid civil judgments being reported as unpaid, as well as other errors with derogatory public record reporting.

If you received a consumer report from Experian or TransUnion that reported a paid tax lien as unpaid and are interested in discussing the class action, please contact E. Michelle Drake at (612) 594-5933 or emdrake@bm.net.

About the cases

Plaintiffs allege that Experian and TransUnion willfully violated the Fair Credit Reporting Act (“FCRA”) by reporting tax liens that were already paid and failing to follow reasonable procedures to ensure that the tax lien information they reported was as accurate as possible.

Do Experian and TransUnion know about these consumer report inaccuracies?

The complaints allege that Experian and TransUnion are well aware that they have problems with failing to accurately report public record information. In fact, both agencies have been sued multiple times for reporting out-of-date tax lien information in particular.

Both consumer reporting agencies receive the public information that they include on their reports from a third party. According to the complaints, Experian and TransUnion know that the tax lien information they obtain from this third party is often inaccurate or out of date. Despite this knowledge, neither agency takes any reasonable action to ensure that the information they receive is accurate before reporting it.

Why don’t Experian and TransUnion correct inaccurate tax lien information?

Neither Experian nor TransUnion has a reasonable systemic procedure to assure that, when tax liens are paid, satisfied, or released, the updated status is promptly obtained and reflected on a consumer’s credit report.

In fact, both agencies acknowledge on their websites that outdated tax lien reporting is a problem. However, they attempt to put the responsibility on the consumer to report or correct any outdated tax lien information.

What is a tax lien?

A tax lien is the government’s claim on a taxpayer’s property. It is generally placed when a taxpayer fails to pay owed taxes. This ensures that the government gets first right to the property over other creditors if the taxpayer does not pay back the overdue taxes.

Tax liens are considered derogatory marks on consumers’ credit reports; by reporting paid tax liens as unpaid, Experian and TransUnion are putting peoples’ credit scores at risk.

What is a public record?

A public record is any record maintained by the government.  Judgments in civil cases are public records, and an entry is made when the judgment is paid. If you have ever had a debt collection or other lawsuit filed against you and have paid money, you have a public judgment record. In addition to having problems with tax lien reporting, many consumer reporting agencies also have problems with inaccurate reporting of public judgments. The agencies show the judgments as unpaid, or “unsatisfied,” when in fact, the consumer has paid the full amount owed.

Unpaid judgments are considered derogatory marks on consumers’ credit reports; by reporting paid tax liens as unpaid, Experian and TransUnion are putting peoples’ credit scores at risk.

If your consumer report from Experian or TransUnion notes a paid tax lien as unpaid, please fill out the contact form on this page to get in touch with an attorney who can help.

Do I have to pay to consult with an attorney?

We are happy to talk with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we produce a successful outcome, and that we will receive our fees from amounts recovered from the Defendant in the case.

Please contact us to discuss the details of your case. You may:

  1. Use the contact form on this page
  2. Email info@bm.net
  3. Call (800) 424-6690

 


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