Verizon Violated FCRA by Ignoring Fraudulent Account: Complaint

Verizon conspired with Equifax, Experian and Trans Union to violate the Fair Credit Reporting Act by failing for years to “fully and properly investigate” a fraudulent account attributed to plaintiff Tyler John Buck of Pierce County, Washington, and by failing to review “all relevant information provided by the consumer reporting agencies,” alleged a complaint Tuesday (docket 2:22-cv-01753) in U.S. District Court for Western Washington in Seattle.

Verizon is a creditor and “furnisher” of consumer information under the FCRA, and is barred under the statute from conveying to Equifax, Experian and Trans Union any data that it knows or suspects is inaccurate, said the complaint. The FCRA also bars Verizon from furnishing the credit reporting agencies with information the consumer reports as being inaccurate or fraudulent, as was the case with Buck in his dealings with a fraudulent Verizon account, it said.

Furnishers such as Verizon report credit information to the agencies “through the use of coded tapes” that are transmitted monthly through software known as “Metro 2,” said the complaint. Equifax, Experian and Trans Union use the information to create and maintain “consumer credit files” on more than 200 million Americans, it said. Furnishers like Verizon update the files electronically with “tradelines” to reflect new information relevant to a consumer’s credit history, it said.

Unknown to plaintiff Buck, an identity thief hacked his Verizon account in September 2018 and opened three installment loan agreements in Buck’s name, said the complaint. The agreements totaled $2,090 toward the purchase of two iPhones and one iPad, it said. Buck reported the imposter accounts to Verizon’s fraud department, explaining that he believed he was a victim of identity theft, it said. But despite Buck’s dispute, Verizon continued to hold him “liable for the fraudulent debts,” it said.

Despite sending Verizon a police report, as the company had instructed Buck to do, Verizon failed to “properly investigate” his dispute, as it was required to do under the FCRA, said the complaint. Buck continued to dispute the fraudulent accounts with Verizon through mid-September 2021, “to no avail,” it said. Verizon, having received no payments from Buck on the fraudulent accounts, sold his debt to Jefferson Capital, a collections agency, it said.

The fraudulent Verizon account activity cost Buck denials of an eBay credit card account from Synchrony Bank and a home mortgage loan through loanDepot, said the complaint. It wasn't until April 2022 that Equifax, Experian and Trans Union finally deleted the fraudulent Verizon account from Buck’s credit reports, it said.

Verizon published inaccurate information about the fraudulent account “on multiple occasions” to Equifax, Experian and Trans Union, in violation of the FCRA, said the complaint. Verizon also violated the statute by failing to “fully and properly investigate” Buck’s disputes of its “inaccurate representations,” and by failing to correct its wrongful reporting to the credit agencies within the 30-day time frame provided in the FCRA, it said.

Verizon’s “conduct, action and inaction” was “willful,” rendering it liable for actual or statutory damages, and punitive damages in an amount to be determined by the court, said the complaint. Verizon didn’t comment Wednesday.