Thomas v ClearCredit
ClearCredit Charged with Credit Abuses
A national class action has been filed against ClearCredit and several other parties claiming that the defendants worked together to obtain consumers' credit bureau reports under false pretenses, in violation of the federal Fair Credit Reporting Act and Louisiana state law. The action seeks to recover compensatory damages for class members.
ClearCredit is a credit repair business. The class action alleges that, when a consumer paid ClearCredit for services, ClearCredit obtained a copy of the consumer's credit report by having one of the other defendants, who were legitimate credit issuers, request the credit reports from the three main credit bureaus--Equifax, Experian and TransUnion. According to the action, this request created an "inquiry" item on the consumer's credit report, which will have the effect of lowering the consumer's credit score.
The other defendants that allegedly worked with ClearCredit in this scheme were IQualifyNow.com, Emortgagegroup.com, National Credit Center, Inc., Credit Decisions Inc., and Info1 Holding Company, Inc. Consumers who paid ClearCredit for services will see an inquiry from one of these companies on their credit reports.
Most of the claims in the class action are asserted on the basis of the federal Fair Credit Reporting Act, and the class period for these claims will be determined under that act. One of the claims is asserted under Louisiana state law, and that law will determine the class period for this claim.
