Suing Chase and Equifax for verifying incorrect late payments and balance

On September 5, 2011 Chase reported my client’s old charged off credit card with NUMEROUS late payments after the account was charged off.  From the myFICO Equifax report:


My client disputed these incorrect late payments and Chase then reported the account with the “CO” notation in the payment history to Equifax.  Unfortunately, myFICO rated the “CO” notations as LATE PAYMENTS (fictitious lates):


My client disputed with CSC as it maintained his Equifax file at the time and he included the myFICO Equifax showing how the fictitious lates lowered his FICO score:



The length of time since the “most recent late payment” is a MAJOR FICO negative score factor and obviously your score will be a LOT lower if your most recent late payment was a month or two ago instead of 5 years ago.

NO credit card can have late payments AFTER the account was charged off because charge-offs are CLOSED accounts and closed accounts can’t be late!

In response to my client’s dispute Chase changed the “CO” back to “real” 180 day late payments.

The 4/10/12 Equifax reporting of the Chase account:

My client disputed with CSC and it VERIFIED these OBVIOUSLY INCORRECT late payments.

There is NO need for a credit bureau to contact the furnisher of these clearly INCORRECT late payments!

The account was charged off in 12/07.  You can not possibly have ANY late payments after an account was charged off.

My client’s Equifax FICO score was way too low for a mortgage with these RECENT lates.

I contacted Chase directly.

On 5/8/12 I faxed to Chase:

… Despite my client’s disputes with the credit bureaus, you are reporting this old charged off account as 120+ days late as recently as 1/12. This INCORRECT credit reporting is seriously lowering his credit scores. …

On 5/11/12 we got the Chase response:


Talk about FRUSTRATION!  Not only did Naveena Vismanath fail to delete the incorrect late payments, but she also made this blatantly false statement:

Please understand that all accounts must be reported and will remain a part of your credit report for a minimum of seven to ten years from the date that your account was paid in full or closed and reflecting a zero balance, whichever is recent..

Apparently Naveena Vismanath is in India and maybe she is referring to INDIA credit reporting laws?

In the United States, derogatory accounts have to be removed from credit reports no later than 7 years from the date of chargeoff and for Equifax it is seven years from the date of last activity — when the account first became permanently delinquent — NOT 7 or 10 years after the account has a $0 balance, which would result in having an unpaid account on the credit reports FOREVER.

The 5/20/12 Equifax reporting is almost identical, but apparently Naveena Vismanath had the dispute notation removed and additional INCORRECT RECENT LATE PAYMENTS were added:


I have seen late payments after accounts were charged off many times and if you have chargeoffs on your credit reports, make sure that there are no lates after the chargeoff.

Chase sent a 1099 and my client had to include the forgiven balance as income on his tax return.

It is very important to check the code on the 1099:

G Decision or policy to discontinue collection

My client disputed the balance with all three credit bureaus and he INCLUDED a copy of the 1099. 

Incredibly, CSC (Equifax) VERIFIED the balance.  Experian REFUSED to investigate and demanded documentation! Only Trans Union changed the balance to $0.

Obviously Chase has to delete the balance when it chooses to discontinue collection.  If the balance remains, my client will have to pay it to get a mortgage!

My client filed a small claims suit against Chase, Equifax and Experian.

Both Chase and Equifax called him a couple of weeks ago, but he was out of town on business and plans to call them today.

The Chase account on the 7/7/13 Equifax report:


Despite notice of this outrageous incorrect credit reporting, Chase and Equifax did NOT correct anything!

How can this be?

It makes my blood boil to see the DISRESPECT they have for consumers even when they’re being sued.

At one point Chase added the DISPUTE NOTATION again which has to be DELETED to get mortgage approval!

My client’s last round of disputes included the request for removal of dispute notations:

My mortgage broker advised that NO account can be reported as “disputed” by the creditor.

Please ensure than no account is reported by the creditor with a dispute notation.

Of course Equifax and Experian IGNORED this request.

While it’s nice to have higher FICO scores because derogatory data in disputed tradelines (NOT collections!) is ignored by scoring software, it’s devastating to be under contract to purchase a home, have the lender require removal of the dispute notation and then the FICO score goes down 50 or 100 points (not unusual with these RECENT incorrect late payments.)

My client should retain an ATTORNEY.

Credit bureaus and creditors really don’t care when you sue them pro se because they don’t have to pay for your work as a pro se litigant.  It’s quite common that the consumers’ attorneys get $20k or more in attorneys fees at settlement while the consumers get $1,000 or so.  It’s a lot of work to litigate!

We need MINIMUM statutory damages for FCRA violations and I sure wish that more consumers were interested in lobbying legislators.  Of course the people who care don’t have any money to bribe legislators while the finance industry contributes MANY millions to their campaigns and they employ professional lobbyists.

Busy as I am, I’ll try to draft my client’s complaint to the Consumer Financial Protection Bureau next week.

That the credit bureaus and Chase continued to report the OBVIOUSLY INCORRECT late payments and balance several weeks AFTER they were served with the lawsuit documents their contempt for the law and consumers.

If my client doesn’t settle soon, I’ll compile all the disputes and the investigation results and I’ll start a new blog for the CFPB complaint.

And we’ll start looking for an attorney to take this into “real” court and make Chase, Experian and Equifax PAY for their willful FCRA violations.  I’d like to see the depositions of the people who decided to verify this obviously INCORRECT reporting.

9 Responses to “Suing Chase and Equifax for verifying incorrect late payments and balance”

  1. Craig

    Having the same problem with an account from 2008

  2. Mary Burton

    I am a lender, and several cases like this have come across my desk. I am trying to help my clients, but keep getting the same run around from Chase. They are reporting lates after a foreclosure.
    Some have a zero balance and are reporting lates not during the foreclosure, but the lates start the month AFTER the house went to Trustee Sale. This is illegal!!!
    How can we stop Chase from doing this. Are they totally immune to Federal law??
    Has anyone started a class action law suit???

    • Hi Mary,

      This is not a situation suitable for a class action because you have NO legal claim against Chase until AFTER they VERIFIED the incorrect data with a CREDIT BUREAU.

      Since you’re a lender, you’re in the best position to assist your clients with proving DAMAGES, but you have to be able to show how the CHASE account impacted on FICO scores or otherwise caused the decline because Chase will be quick to point out any other derogatory accounts on the credit.

      It’s extremely important that your clients submit FACTUAL disputes IN WRITING (not online) to the credit bureaus (not to Chase), that they keep the credit bureau investigation results and that they do NOT use credit repair companies.

      You have to provide them with your RMCRs, but they should also have the myFICO reports to be able to show that the illegal lates lower the FICO scores.

      I’ll be posting more about this at and in the new litigation forum “soon.” I’ve been so busy, but am determine to get more current info online.

      How can we stop Chase from doing this. Are they totally immune to Federal law??

      They’re not immune per se, but they’re so big, they simply don’t care if one out of 1000 consumers is so lucky to find a competent attorney who files a lawsuit and Chase has to pay a few thousand. In essence, they are immune.

      Your clients can also file complaints with the CFPB about Chase and the credit bureaus who don’t correct, see

      I could file a complaint just about every day and I don’t see it making an immediate difference (I still don’t have my Equifax credit report!), but if millions of consumers filed complaints, we’d get better legislation and enforcement.

  3. Ralph DeSiena

    So what ever happen with the Chase and Equifax situation…reporting lates after the Charge Off?
    I have an account that Chase recently did the same and only Equifax seems to be reporting that way. Charge off was in January, 2010 and now in April 2015 they change the reporting?
    Equifax dropped 37 points when this happened but TU and Experian scores increased since they are not reporting these lates. Equifax now says 39 90 day lates!
    I GUESS I can go back to the CFPB regarding Equifax but not sure I want to rock the boat and have the other 2 scores go down.
    I thought once charged off and a 1099C and taxes were paid it was the end of it.

    • The lates after the chargeoff are generally only a problem with Equifax.

      Did the reporting change when they sent you a 1099 and they changed the balance to $0?

      Just because you got a 1099 does not mean that the account is deleted, they only have to change the balance. Other banks like Capital One actually continue to report the INTEREST portion, but since Chase doesn’t usually charge interest after an account was charged off, the balance should be $0.

  4. Jon

    I went to small claims to sue Experian credit agency but the court said I cannot sue Experian because there are located in a different state. How do I sue Experian?

    • You can always sue them in federal court, but you SHOULD be able to sue in state court too because your damages occurred where YOU live. Many small claims courts have special rules and it depends on YOUR court’s rules.

  5. Charles Bitten

    I too have problems with Chase and Equifax. Equifax has listed my Chase account as included in bankruptcy when it was settled through a short sale year prior. Im disputing it for the 10th time. Equifax says Chase has verified that it is reporting correctly. Chase Says that they did not report it as charged off in bankruptcy. I got denied a loan because of the improper reporting. I plan on suing soon. The problem is proving damages. 5 to 10 grand maybe. But the creditor’s lawyer usually attempts to move it to federal court claiming jurisdictional diversity. Once there, it is usually dismissed as it does not meet the $75,000 minimum for adjudication. Wow they have it all figured out. The consumer looses again.

    • This is really why I stopped providing credit services. SOOO FRUSTRATING!!!

      My reply for my appeal regarding that exact same situation with Equifax and Midland is due soon.

      You might want to read their arguments in my case and especially the judge’s bizarre rulings. The least time consuming is to read my opening brief and you can skip the part on the FDCPA violations:

      FYI, there is NO minimum requirement of $75k in federal court because you’re litigating FEDERAL law. But they will most likely remove from state court for that reason, unless you’re willing to settle for next to nothing.

      Hope you’re not going to be in Phoenix court as most judges are consumer law haters.

      And it all comes down to your evidence. Mental anguish, stress, etc. are ACTUAL damages and in the 9th circuit we don’t need to have doctors testifying, our affidavit is good and the jury gets to decide if you get that far.

      If you’re thinking about suing pro se, the NCLC books are an absolute MUST have. They’re much cheaper now, I think I just paid $150 or so for a one year FCRA subscription including the books.

      But keep in mind that the rules of evidence, discovery and all that can make you lose your case too. Again, read my opening brief.

      There are a gazillion ways to get railroaded in kangaroo courts!

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