Equifax Claims LexisNexis Slipped Up

RICHMOND, Va. (CN) - Equifax Information Services claims LexisNexis slipped up in selling its reports on a civil judgment, prompting a consumer to file a Fair Credit Reporting Act claim against it. Equifax says it was sued by a consumer who claims the credit agency failed "to adopt reasonable procedures to ensure maximum possible accuracy in its reporting of the status of judgments that have been set aside, vacated or dismissed with prejudice."

Equifax sued LexisNexis, a "public records vendor," in Federal Court. It says LexisNexis has not responded to its demand for indemnification.

According to the complaint, the two companies have a 2008 agreement that requires "LexisNexis to provide Equifax with the 'status' of judgments."

"To the extent that judgments were satisfied, reversed, vacated, or otherwise modified, LexisNexis is required to provide that information to Equifax on the same frequency schedule used to obtain the initial judgment," according to the complaint.

Equifax says that in the 2008 agreement, "LexisNexis also agreed to indemnify Equifax 'from and against any losses arising out of, or relating to or incurred as a result of any claim to the extent that such claim results in whole or in part from (i) any negligence or intentional misconduct of LexisNexis in the course of performing its obligations under the agreement or (ii) LexisNexis' failure to comply with applicable law.'"

Equifax says the litigation it faces constitutes a "claim for which LexisNexis must indemnify" it under the 2008 agreement.

Equifax is represented by John Montgomery Jr. with Montgomery Simpson.

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