Xactus, a company involved in the debt collection industry, has been named as a defendant in a recent lawsuit filed in Riverside, California.
The suit accuses Xactus and other defendants of attempting to collect an invalid debt from the plaintiff and of inaccurately reporting information to the credit reporting agencies.
The lawsuit claims that the defendants engaged in “unlawful and abusive practices” in collecting the debt and in reporting the information to the credit reporting agencies.
- The plaintiff, Guo, suspected that someone was trying to open credit accounts in her name without her consent in September 2020.
- This suspicion was confirmed in August 2022 when Guo received a bill for nearly $1,800 from AT&T for the purchase of a cell phone.
- Guo claimed that she had no knowledge of the purchase and did not consent to it.
| Plaintiff’s Actions | Actions of Defendants |
|---|---|
| Guo reviewed her credit reports to verify the information. | AT&T reported the purchase to the credit agencies. |
| Guo sent an initial dispute letter to American First Credit Union to dispute the unauthorized inquiry on her Experian credit report. | Other defendants, including Xactus, allegedly replied that they were unable to remove the unauthorized inquiries from the credit report. |
“To date, Defendants’ inaccurate credit reporting, and each of them, remains on Plaintiff’s Equifax Credit Reports,” the complaint states. “By inaccurately reporting account information after notice and confirmation of its errors, Defendants, and each of them, failed to take appropriate measures as required by 15 U.S.C.
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