Xactus has requested the transfer of the lawsuit to federal court in Riverside, California, as of Monday.
The lawsuit alleges that the defendants engaged in unlawful and abusive debt collection practices against the plaintiff, as well as inaccurately reporting information to Credit Reporting Agencies.
According to the complaint, in September 2020, Guo became aware of unauthorized attempts to open credit accounts in her name. This suspicion was confirmed in August 2022 when she received a bill of nearly $1,800 from AT&T for a cell phone purchase she did not authorize.
Guo, upon discovering this unauthorized transaction, reviewed her credit reports and found additional unauthorized credit inquiries and transactions. In 2023, she identified fraudulent items on her credit report, including a delinquent trade line allegedly owed to the Automobile Club of California collected by debt collector Adler Wallach & Associates for insurance services, despite not having car insurance through AAA at any point.
Following these discoveries, Guo sent dispute letters to various entities, including American First Credit Union, Bridgecrest, Citibank, Equifax, Wells Fargo, and Xactus, requesting the removal of unauthorized inquiries from her credit report. Despite her efforts, the inaccurate reporting persisted on her Equifax Credit Reports, leading Guo to claim actual damages such as attorneys’ fees, loss of credit opportunities, and increased costs for credit.
As a result, Guo is seeking a jury trial and damages from the defendants. HousingWire’s requests for comment from the defendants remain unanswered at this time.