Toyota Motor Credit Corp., Experian, TransUnion Failed to Investigate Disputed Report Info, Lawsuit Alleges

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A proposed class action claims that Experian, TransUnion and Toyota Motor Credit Corporation have violated federal and New York law by failing to properly investigate and correct inaccurate information on consumers’ credit reports.

The 16-page lawsuit says that although credit reporting agencies, such as Experian and TransUnion, and furnishers of credit information, such as Toyota Motor Credit Corp., are required to properly communicate and investigate a consumer’s dispute and correct any inaccuracies on their credit report, the defendants have nevertheless failed to do so.

“Inaccurate information was included in the Plaintiffs’ credit reports,” the complaint states. “The inaccuracy was due to the Defendants’ failure to follow reasonable procedures to assure maximum possible accuracy.”

The two plaintiffs in the case are New York and Florida residents who claim they were never informed by phone or email that the auto-pay arrangement in place for their leases with Toyota would be “turned off” when the leases were extended. 

Per the case, the two consumers sent letters to Experian and TransUnion around May 18, 2022, stating that “they were never late on their Toyota accounts as their accounts were set up for auto-pay.” The plaintiffs requested that the late payments showing on their accounts be removed as inaccurate “as the auto-pay should have continued,” the suit relays.

Despite the plaintiffs’ disputes of the accuracy of the information in their credit reports, the defendants have, according to the case, “completely abdicated their obligations under federal and state law.”

Toyota Motor Credit Corp., for its part, promised in its customer contracts to accurately update accounts yet has failed to remove the inaccurate information from the plaintiffs’ credit files, the case contends. The suit says furnishers of credit information, such as Toyota Motor Credit Corp., are required to perform “detailed examinations” of the information underlying consumer transactions before responding to any inquiries about their debts.

According to the case, Experian and TransUnion similarly failed to satisfy their obligation under the Fair Credit Reporting Act (FCRA) to properly investigate the plaintiffs’ disputes or remove the disputed information from their files within 30 days of receiving their disputes. 

Per the suit, the defendants’ failure to investigate the plaintiffs’ disputes is a result of standard policies and practices “adopted in reckless disregard of consumers’ rights under the FCRA.”

The plaintiffs look to represent anyone who, according to the defendants’ records, lives in the United States and disputed a Toyota account with credit reporting agencies that was not properly corrected during the past two years and until the time of judgment in the case.

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