Experian Information Solutions, Inc. (“Experian”), is based in Costa Mesa, California, United States and was founded in 1996. It’s basically a credit reporting company. It has been sued several times & it has been under the government’s scrutiny in the past few months.
Consumers are worried about how the company deals with their complaints, data usage & privacy issues because of these lawsuits.
Here is a list of things: what is going on, what are the main allegations against the company, what’s the company’s reaction to the allegations, and what this can mean for customers.
Is the CFPB Suing the Government?
The CFPB sued Experian on 7’th January, 2025. The CFPB saying that the company didn’t handle customer complaints in a professional way under the FCRA Act. Specifically when the allegations describe that Experian did “sham investigations” when consumers challenged their disputed credit card reports.
The complaint says that Experian frequently accepted applications from vendors (those who provide credit information) without verifying them properly, overlooked documents sent in by consumers, and let data that had been removed from credit reports be added back in.
The CFPB wants a court order, compensation for damaged customers, the return of money made through illegal means, and a civil penalty.
In August 2025, a U.S. federal judge rejected this complaint without any prejudice, which means that the CFPB could file a new version.
Class Action Lawsuits About How Data is Used
Another proposed class action from June 2025 claims that Experian shares consumers’ phone numbers with third-party lenders (called “trigger leads”) without their acknowledgement.
There were class action cases in the past (some of which were settled and others of which are still going on) in which Experian was accused of submitting reports to collection agencies without any valid reason. One of these cases was settled for about $8 million.
In January 2023, it was announced that Experian won a lawsuit in the U.S. 2nd Circuit about the “legal inaccuracy” of information submitted under the FCRA.
Experian won the lawsuits battle in September 2023 that said it didn’t report the state statute of limitations for debts.
Experian’s Answer to the Allegations:
Experian completely disagrees with what the CFPB says. The company gave a public statement that the case is “completely baseless” and is an example of “irresponsible overreach.” They say they would “vigorously defend” the case and don’t expect it to have a big effect on their business.
What does this mean for businesses and customers?
• The lawsuits show how important it is for customers to validate their credit reports for any kind of mistakes, dispute them, and keep an eye on whether the data that was erased is added back. The dispute shows that there are several challenges with the company the way they are managing the credit data of their consumers.
• For those businesses who are rely on credit-reporting data, such as lenders, landlords, and companies, these changes could imply that credit-reporting agencies will be more carefully watched by the government and that the way credit file data is processed or validated may change.
• If Experian has to make any changes because of the judicial outcomes, we might see a stronger dispute processing rules, more transparency about how personal data of their consumers are used (like phone number disclosures), and maybe higher compliance costs that are passed on to customers or to business clients.
Things to think about:
The CFPB’s biggest investigation had came out in August 2025, which shows how the government agencies are paying close attention to credit reporting companies.
Depending on the facts, whether they are verified, the class actions might turn into big lawsuits. Experian’s strong denial doesn’t mean that there can’t be future settlements or changes in practice.
In fact, businesses often changed their ways even when they didn’t admit to doing anything illegal.
It’s also important to remember that legal actions against any credit reporting companies can take a long time. It can take a few months or even years for the entire results to come out, including appeals or settlement negotiations.
Conclusion:
It’s true that Experian is being sued. There have been a number of legal and regulatory actions against the company, suggesting that it does a poor job of handling consumer complaints and using personal data.
One of the most common example is, the CFPB’s lawsuit, which has been settled down for now, but there are a lot of interest in litigations & regulations.
People and businesses that depends on the credit reports should stay aware, know their rights, and keep an eye on how companies like Experian adjust their responses.
