Class Action: Wells Fargo Systematically Reports Inaccurate Consumer Info

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A proposed class action citing alleged Fair Credit Reporting Act (FCRA) and California Consumer Credit Reporting Agencies Act (CCCRAA) violations claims Wells Fargo systematically reports negative, inaccurate information on consumers’ credit reports. Coupled with this claim are allegations that Wells Fargo fails to properly investigate disputes over inaccurate consumer data and, in certain situations, fails to correct erroneously reported consumer information.

“Any violations by [Wells Fargo] were knowing and intentional, and [Wells Fargo] did not maintain procedures reasonably adapted to avoid any such violations,” the 37-page complaint alleges, adding that the disgraced bank acts in bad faith and with “full knowledge that it is in violation of the law.”

Wells Fargo’s credit reporting practices deviate from accepted industry standards, the lawsuit claims. As a result, many consumers have been denied credit and end up dealing with higher interest rates. Wells Fargo’s alleged conduct then trickles down to third parties responsible for making credit decisions, the case says.

The lawsuit notes the plaintiff is one of thousands of consumers nationwide who have filed for either Chapter Seven or Chapter 13 bankruptcy and have been granted orders of discharge by U.S. bankruptcy courts. Consumers who have been given bankruptcy discharges are at the mercy of Wells Fargo’s “deliberate” inaction when it comes to updating necessary record and credit reporting agencies, according to the lawsuit:

“As a result of [Wells Fargo’s] refusal to make such updates to credit reporting agencies, debts that have been discharged in bankruptcy are instead listed on class members’ credit reports as ‘past due’ and/or ‘charged off’,” court papers claim. “The notations clearly indicate to potential creditors, employers, or other third parties that a class member still owes a debt and that may be subject to collection.”