We recently sued CACH, LLC (a debt buyer), Equifax, Experian, and Trans Union for false credit reporting in violation of the Fair Credit Reporting Act (FCRA), Fair Debt Collection Practices Act (FDCPA), and state law. This false credit reporting was done after a judge ruled that our client did not owe CACH any money on the alleged debt that CACH sued our client on. Pentagroup Financial was also sued as this debt collector started collection activities against our client who does not owe CACH any money.
We have previously blogged about how debt buyers and consumer reporting agencies (CRAs) refuse to delete accounts after an Alabama state court judge has ruled that our consumer does not owe the debt buyer. The debt buyer sues our client and loses. Our client disputes in writing with the CRAs. Pretty simple, right? Apparently not so simple. In this case CACH out of Colorado and Equifax, Experian, and Trans Union verified (kept) the false account with a balance on our client’s credit reports.
CACH also sent the account out to Pentagroup to start collecting against our client for this same debt.
This seems to be a widespread problem in Alabama among debt buyers – when they lose they think they can ignore our state court judges. Of course, when they win the collection cases (as most consumers sued don’t defend the case) they are big believers in the power of the state court judgments…. Ironic, isn’t it?
If you are sued and win, then you may also face this problem of having false information on your credit reports or dealing with collection agencies hounding you for money after a judge said you don’t owe it. Regarding the problem of credit reporting errors, The solution is to pull your credit reports, review them, then dispute any false information, and finally sue if the false information is not corrected. Please feel free to contact us if you live in Alabama and have questions about your credit reports or any collection activities you are facing.
Another resource for you is to join our Facebook Fan Page – Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.