Experian, Nordstrom, TD Bank Failed to Properly Investigate Credit Dispute, Lawsuit Alleges

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A proposed class action claims Experian Information Solutions, Nordstrom and TD Bank USA have failed to conduct proper investigations when consumers dispute information in their credit reports.

According to the case, the defendants have violated both the federal Fair Credit Reporting Act (FCRA) and New York Fair Credit Reporting Act by failing to ensure the maximum possible accuracy of the information reported about consumers.

The plaintiff in the suit claims to have been a “victim of inaccurate reporting” by Experian with regard to a Nordstrom/TD Bank account that appeared on her credit report. Per the case, the woman wrote in a July 2021 dispute letter that the Nordstrom/TD account at issue was “paid in full so it cannot be listed at $82 written off.” The July letter further disputed a bankruptcy, stating the plaintiff had “never been involved in anything dealing with this bankruptcy,” and requested that the record be removed from her credit report, the complaint states.

The lawsuit alleges, however, that Experian issued an August 2021 credit report about the plaintiff wherein the two disputed items had not been corrected. 

According to the case, credit reporting agencies such as Experian are bound by federal and state laws to properly investigate disputed items in consumers’ credit reports. Instead, the suit says, Experian has “completely abdicated” its statutory obligations and “chosen to merely ‘parrot’ whatever its customer, Nordstrom/TD has chosen to say.”

Nordstrom and TD, for their part, have “willfully, maliciously, recklessly, wantonly, and/or negligently” failed to fulfill their own obligations under federal and state laws to accurately update consumers’ accounts, the case alleges. As a result, the plaintiff has suffered “particularized and concrete harm” due to the inaccurate information included in her credit report, the lawsuit argues.

“If Nordstrom/TD had performed a reasonable investigation of Plaintiff’s dispute, Plaintiff’s matter with Nordstrom/TD would not have been [sic] reappeared under a different account number in the Plaintiff’s report,” the complaint contends.

The lawsuit looks to represent anyone who, according to the defendants’ records, resided in New York and notified Experian of a dispute of an account appearing in their credit files and for whom Experian failed to include the statement of dispute in other credit reports within the last two years and through the time of judgment in the case.

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