Twins: Double the Fun but not When it Comes to Their Mixed Credit Reports

A mixed file occurs when one of the national credit reporting agencies, Equifax, Experian, and/or Trans Union commingles the credit histories of two different individual consumers into a single credit report. The result is a credit report that contains information belonging to two different consumers, bundled together as if those two consumers were the same person. More simply, a mixed credit file is where credit data is not matched to the correct consumer.

The national credit reporting agencies, Equifax, Experian, and Trans Union, collect and assemble billions of pieces of consumer credit data each day. Assembling includes associating that data with the correct consumer. Those associations are determined by computer and data algorithms tasked with comparing the consumer’s personal identification information associated with a particular credit account, collection account, or public record with consumer personal identification information associated with a particular consumer credit file. These comparisons are scored and ranked, and those rankings ultimately determine whether a particular credit account, collection account, or public record is matched with a particular credit file. These matching procedures are regulated by the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681 et seq.

The computer and data algorithms utilized by the national credit reporting agencies do not require exact matches on personal identification information, such as full name, date of birth, address, or Social Security number, to qualify data as a match. In fact, and in order to take into account minor errors and omissions made by consumers and data furnishers, the credit bureau’s matching systems do not require exact matches for all of the various personal identification information associated with a given credit account, collection account, or public record. Thus, a credit reporting agencies’ matching system might, for example, match reported credit information to a particular consumer even where the reported Social Security number does not match all nine digits of the consumer’s Social Security number, where several other identifying items are an exact match. The flexibility in the credit bureaus’ matching system can result in similarly named consumers’ credit information being mixed into the same credit report. For example, Frances Harrington and Frances Hardin who were born in the same year but exactly one month apart and who share 8 of 9 Social Security number digits could be considered as the same person by the credit bureaus’ matching algorithms, despite the fact that they have different last names, were born in different months, and live in different states.

Yes. Because twins share the same date of birth and often have similar names or other personal identification information, they are at an increased risk of falling victim to a mixed credit file. For example, identical twin brothers Jeremy and Jeremiah who were born on the same day and, consequently, have similar Social Security numbers, immediately, by no fault of their own, are at a much greater risk of having their credit files and reports mixed by the credit bureaus than sisters, Maria and Mariana, who are not twins and were born two years apart. In sum, the credit bureaus’ matching algorithms consistently struggle to differentiate between twin siblings who either share or have multiple items of personal identification information in common.

The Fair Credit Reporting Act protects the rights of all consumers, including twins, and requires that the credit bureaus follow reasonable procedures to assure the “maximum possible accuracy” of the contents of the consumer credit reports they sell. The FCRA also has a built in dispute mechanism for consumers who believe their credit report contains inaccurate information, specifically requiring the credit bureaus to conduct a reasonable reinvestigation of each and every consumer dispute within 30 days of receipt of such a dispute and remove all disputed information that is determined to be inaccurate or unverifiable. It is highly recommended that one work with one of Berger Montague PC’s credit reporting lawyers to help ensure that disputes are submitted properly, increasing the odds of the credit bureaus actually removing the disputed, inaccurate mixed credit information for your credit report(s).

If you believe that your credit report contains information that belongs to someone else, you should file a dispute with the credit reporting agency. You can do this by contacting the credit reporting agency in writing and providing documentation to support your dispute. The credit reporting agency is required by law to investigate your dispute and respond within 30 days. If the agency determines that the information is inaccurate, it must correct or delete the information from your credit report.

Yes. The Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681 et seq., protects all American consumers, entitling them to a credit report that contains accurate information. If your credit report contains inaccurate information or is mixed with personal identification, credit accounts, or hard or soft inquiries belonging to your twin, the FCRA enables you to dispute the inaccurate and mixed information and file a lawsuit if the credit bureau(s) fail to remove the disputed, inaccurate mixed information within 30 days of receiving a consumer dispute.

Credit reporting agencies that violate the Fair Credit Reporting Act (FCRA) can face significant penalties, including fines, damages, and injunctive relief. The three major credit reporting agencies have been subject to numerous penalties for FCRA violations related to mixed files.

For example, in 2017, Equifax agreed to pay $23.1 million to settle a class action lawsuit alleging that it had violated the FCRA by including mixed information in consumer credit reports. Similarly, in 2013, Experian agreed to pay $18.3 million to settle a lawsuit with the CFPB for allegedly violating the FCRA by selling consumer credit reports to creditors that contained inaccurate information, including mixed files.

Under § 1681n of the FCRA, consumers can recover actual damages sustained as a result of the credit reporting agency’s violation of the law, as well as any additional damages up to $1,000.00. There are two types of actual damages a consumer may recover: 1) economic damages, such as being denied credit for an auto loan or mortgage loan, and 2) non-economic damages, such as emotional distress.

In cases where the violation is found to be willful, the court may also award punitive damages. Under § 1681o, consumers can also recover their attorneys’ fees and costs if they prevail in their lawsuit.

There are several steps you can take to protect yourself from having a mixed credit file or report:
1. Regularly monitor your credit reports: Obtain a free copy of your credit report from each of the three national credit reporting agencies, Equifax, Experian, and Trans Union once per year at AnnualCreditReport.com. Carefully review each report for inaccuracies and errors.

2. Dispute any errors: If you find errors, file a dispute with the credit reporting agency. The credit reporting agency is required by law to reinvestigate your dispute and respond within 30 days. If the credit bureau determines that the information is inaccurate, it must correct or delete the information from your credit report.

3. Provide supporting documentation with your dispute: In the case of a mixed file, it is important to provide as much documentation as possible to help the credit reporting agency differentiate between you and the other individual with whom you are mixed, such as your twin. This may include a copy of your driver’s license, Social Security card, and other personal identification information, such as a mortgage statement, electric bill, or W2.

4.Protect your personal information: Be cautious about sharing your personal information online or with third parties and be sure to keep your personal documents in a secure location.