Is AFNI, Inc. on your credit report?

CFPB Issues Order Against AFNI, Inc. for Credit Reporting Violations

• Furnised information to Credit Reporting Agencies (CRAs) that Afni knew or had reasonable cause to believe was inaccurate;
• Failed to report to CRAs an appropriate date of first delinquency on certain accounts;
• Failed to conduct reasonable investigations of disputes made by consumers;
• Failed to send required notices to consumers about the results of such investigations;
• Failed to establish, implement, and update its policies and procedures regarding its furnishing of consumer information to CRAs;
• Ordered to pay a $500,000 civil money penalty and to take steps to prevent future violations

On November 12, 2020, the CFPB issued a consent order against Afni, Inc., a third-party debt collector that specializes in collecting telecommunications debt.

The CFPB determined that Afni violated the C Fair Credit Reporting Act (FCRA) and its implementing rule, Regulation V, by furnishing information to CRAs that it knew or had reasonable cause to believe was inaccurate. The CFPB found that Afni’s own records reflected the correct account information), but still falsely:

1. reported actual payment amounts as zero dollars on approximately 165,600 accounts, even though those consumers had made payments, and;
2. reported balances and amounts past due on approximately 72,000 accounts, even though those consumers’ accounts were settled in full.

The Bureau found that Afni furnished information to CRAs that it knew or had reasonable cause to believe was inaccurate and failed to report to CRAs an appropriate date of first delinquency on certain accounts. The Bureau also found that Afni failed to conduct reasonable investigations of disputes made by consumers both to Afni and to CRAs about furnished information and failed to conduct investigations of disputes made to Afni in a timely manner. In addition, the Bureau found that Anfi failed to send required notices to consumers about the results of such investigations and failed to establish, implement, and update its policies and procedures regarding its furnishing of consumer information to CRAs. Afni’s conduct violated the Fair Credit Reporting Act (FCRA) and its implementing rule, Regulation V and, by engaging in these violations of the FCRA and Regulation V, Afni violated the Consumer Financial Protection Act.

Under the terms of the consent order, Afni must take certain steps to improve and ensure the accuracy of its furnishing of consumer information to CRAs and its policies and procedures relating to credit reporting and dispute investigation. These required steps include conducting monthly reviews of account information to assess the accuracy and integrity of information it furnishes. Afni must also conduct monthly reviews of consumer disputes and responses to assess whether its handling of consumer disputes complies with the FCRA, Regulation V, and its own policies and procedures. The consent order also requires Afni to retain an independent consultant to conduct a review of Afni’s activities, policies, and procedures relating to furnishing information and credit reporting to ensure that its current policies, practices, and procedures regarding furnishing of consumer information to CRAs comply with the FCRA and Regulation V.

The CFPB also ordered AFNI to create and retain the following business records:

• all documents and records necessary to demonstrate full compliance with each provision of this Consent Order, including documentation of all Board actions taken to comply with this Consent Order and all submissions to the Bureau; and
• all consumer complaints relating to credit reporting (whether received directly or indirectly, such as through a third party), and any responses to those complaints or requests.

The consent order is available at: https://files.consumerfinance.gov/f/documents/cfpb_afni-inc_consent-order_2020-11.pdf 

If AFNI is reporting inaccurate information such as false payment amounts or false dates of first delinquency on your credit report, it may be a violation of the FDCPA or the FCRA. Call Paramount Law or use the webform below to see if you may be entitled to damages for their credit reporting errors.