The billing of credit reports threatens the automated ticketing industry
“We have had many complaints over the years that credit bureaus fail to correct their own mistakes in people’s credit reports, and it has been difficult and in some cases impossible for consumers to urge them to correct,” Attorney General Tom Miller said in one Declaration in May. “Credit reports are critical to consumers. They can affect people’s ability to secure jobs, homes and vehicles. These reports need to be accurate.”
As first reported by the Cedar Rapids Gazette, Miller confirmed that the agreement applies to Iowa’s red light camera and speed camera programs. A spokesman for Miller’s office pointed theNewspaper to a section of the settlement that specifically deals with citations.
“The credit reporting agencies prohibit debt collection agencies from reporting any debt that is not incurred under a contract or payment arrangement (including, but not limited to, certain fines, tickets, and other reviews),” Section E (1) (c) states.
In states where there is no specific law prohibiting reporting quotes to credit bureaus, after applying for a loan, vehicle owners could find that their application was denied because of a photo ticket they never received, or in some cases the outcome from an incorrect camera display. Legally, the window of the challenge of the underlying ticket would have expired, leaving innocent vehicle owners without recourse.
The agreement is retroactive, meaning that existing credit blackmarks on unpaid tickets must be deleted. Equifax, Experian and TransUnion have complied with Attorney General’s demands over a multiple state lawsuit alleging that fraudulent and unfair industry practices are violating federal and state consumer protection laws. By approving reforms and paying $ 6 million to the states, the credit bureaus will drop all potential fees.
The agreement applies to the states of Alabama, Alaska, Arizona, Arkansas, Florida, Georgia, Hawaii, Maryland, Massachusetts, Michigan, Missouri, Nebraska, Nevada, New Mexico, North Carolina, Idaho, Illinois, Indiana, Iowa, Kansas, Louisiana, Maine, North Dakota, Ohio, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Vermont, and Wisconsin.
A copy of the Settlement Agreement is available in a 3.5MB PDF file at the source link below.