In January 2026, Kelly Guzzo, PLC filed a lawsuit in the United States District Court in Hawaii against Equifax, Experian, and TransUnion for alleged violations of the Fair Credit Reporting Act (FCRA).
The complaint alleges that the credit reporting agencies willfully failed to conduct reasonable investigations and continued reporting inaccurate information concerning our client’s discharged student loans.
Discharged Student Loans Still Reported as Owed
After experiencing financial hardship, our client successfully obtained a full discharge of her student loans through Bankruptcy Court. Months later, while seeking mortgage pre-approval, she discovered that the discharged loans were still being reported on her credit reports as outstanding balances, with no indication that they had been discharged.
She promptly disputed the inaccurate reporting and provided documentation confirming the bankruptcy discharge. Despite receiving this proof, each of the credit bureaus allegedly failed to conduct an adequate independent investigation and did not correct the erroneous tradelines. Instead, as is often alleged in FCRA litigation, the agencies relied on the loan furnishers to verify the disputed accounts. In practice, this means the bureaus forward the dispute to the creditor, accept the creditor’s response, and continue reporting the information — rather than undertaking their own meaningful review.
According to the complaint, this failure to conduct reasonable investigations resulted in continued inaccurate reporting that caused substantial harm, including a lowered credit score, difficulty obtaining new credit, and emotional distress.
Your Rights Under the Fair Credit Reporting Act (FCRA)
The Fair Credit Reporting Act requires credit reporting agencies to follow reasonable procedures to assure maximum possible accuracy and to conduct reasonable investigations when consumers dispute inaccuracies.
When credit bureaus fail to meet these obligations, consumers may have legal remedies under federal law. If your credit report contains inaccurate information related to discharged loans, closed accounts, or other reporting errors, the attorneys at Kelly Guzzo, PLC can assist you with disputing the inaccuracies and evaluating whether the credit bureau failed to comply with the FCRA.
We have handled dozens of cases involving inaccurate credit reporting and investigation failures by Equifax, Experian, and TransUnion. There is no out-of-pocket cost for our services — we only recover if you do.
If you believe your credit report contains inaccurate information that was not properly investigated, contact Kelly Guzzo, PLC to discuss your options.