Turned down because of a Clarity Services report?

Who Clarity Services is and who relies on its reports

Clarity Services, Inc. is a specialty consumer reporting agency focused on what it calls alternative financial services data. Its website describes the company as a part of Experian, and the CFPB’s list of consumer reporting companies says it is owned by Experian. Clarity says its FCRA-regulated reports and scores help lenders assess subprime consumers, including people with thin credit files or none at all.

According to the CFPB, Clarity collects and provides information on payday loans, installment loans, auto loans and leasing, check cashing, rent-to-own transactions, telecommunication account openings and other financial services, with an emphasis on lower-income and subprime consumers. If an online lender, auto lender or rent-to-own store declined you, it may have relied on a Clarity report you have never seen. Your Clarity file is separate from your standard Experian credit report.

The CFPB’s 2015 order against Clarity

In December 2015, the CFPB issued a consent order against Clarity and its founder and then-CEO, Timothy Ranney. The CFPB found that Clarity:

• obtained consumer reports without a permissible purpose to build marketing presentations for prospective clients, including more than 190,000 reports in one instance; and
• between at least July 2011 and January 2014, refused to start reinvestigations unless consumers sent supporting documentation, routinely failed to pass disputes on to the companies that furnished the data, refused to reinvestigate disputed inquiries, and did not reinvestigate identity theft claims.

The order required an $8 million civil money penalty and a compliance plan. Clarity and Ranney consented without admitting or denying the findings. The order is more than a decade old, but it shows why the details of how a reporting agency handles a dispute matter.

Errors that show up on Clarity reports

• Identity theft loans. Payday and installment loans opened by someone using your information.
• Repaid loans shown as unpaid. Balances you paid off still reported as charged off or in collection.
• Inquiries you did not authorize. Loan applications you never made.
• Mixed files. Another person’s records attached to your name or Social Security number.
• Wrong-person account data. Rent-to-own, check cashing or phone account records that are not yours.
• Shallow dispute handling. Disputes closed without a real investigation or without contacting the lender.

How to get your Clarity file and dispute it

1. Read the denial. A lender that turns you down based on a Clarity report must say so in its adverse action notice.
2. Request your report. Clarity’s Request Your Clarity Report page explains how to get your file. The CFPB says Clarity provides one free report every 12 months on request, a score on request, and a security freeze if you ask.
3. Dispute each error. Contact Clarity’s consumer support through its official website, identify each wrong item, and explain why it is wrong. The CFPB advises disputing with the lender that reported the item, too.
4. Do not let a missing document stop you. Send what proof you have, such as payoff letters, bank records or an identity theft report. In the 2015 order, the CFPB found that refusing to reinvestigate for lack of documentation violated the FCRA.
5. Keep copies of everything you send and receive.

Your rights under the FCRA

• Accuracy (15 U.S.C. § 1681e(b)). Clarity must follow reasonable procedures to assure maximum possible accuracy of the information it reports.
• Reinvestigation (§ 1681i). Clarity must reasonably reinvestigate a dispute, free of charge, generally within 30 days, forward it to the furnisher, and correct or delete inaccurate, incomplete or unverifiable information.
• File disclosure (§ 1681g). You may see all information in your file and its sources, including who has requested your report.
• Free disclosures (§ 1681j). You are entitled to a free copy within 60 days after an adverse action notice. The CFPB reports that Clarity also provides one free report every 12 months on request.
• Permissible purpose (§ 1681b). Your report may be pulled only for a purpose the FCRA allows.
• Reporting time limits (§ 1681c). Most adverse information older than seven years may not be reported.
• Adverse action notice (§ 1681m). A lender that denies you or offers worse terms based on a Clarity report must name Clarity and explain your rights.

What you may recover

For a negligent violation, you may recover actual damages, such as a lost loan, higher interest, and emotional distress, plus attorney’s fees and costs (15 U.S.C. § 1681o). For a willful violation, you may recover actual damages or statutory damages of $100 to $1,000, punitive damages, and fees and costs (§ 1681n).

Get a free case review

If Clarity reported a loan that is not yours, or ignored your dispute, act promptly. An FCRA lawsuit generally must be filed within two years after you discover the violation and no later than five years after it occurred (15 U.S.C. § 1681p). FCRA Attorneys represents consumers in federal court on contingency, so there is no fee unless we win. Contact us for a free case review, or see our FCRA practice and the other companies we cover.

Questions about suing Clarity Services

Can I sue Clarity Services?

Yes, if the facts support a claim. Clarity is a consumer reporting agency that sells reports and scores to lenders. If it reports inaccurate information without reasonable procedures, or fails to reasonably reinvestigate your dispute, you may have a claim under the FCRA.

Is Clarity Services part of Experian?

Yes. Clarity's website describes the company as a part of Experian, and the CFPB's list of consumer reporting companies says Clarity is owned by Experian. A Clarity report is a separate file from your regular Experian credit report, so check both.

Has the government taken action against Clarity before?

Yes. In December 2015, the CFPB issued a consent order against Clarity and its founder, finding that they obtained consumer reports without a permissible purpose and failed to properly reinvestigate disputes. The order required an $8 million civil money penalty. Clarity consented without admitting or denying the findings.

What does it cost to bring a case?

There is no fee unless we win. FCRA Attorneys handles these cases on contingency, and the FCRA lets a successful consumer recover reasonable attorney's fees and costs from the company.

Sources

• CFPB consumer reporting companies list: Clarity Services, Inc. (owned by Experian; data types; free annual report)
• Clarity Services official website ("a part of Experian"; consumer report, score, freeze and support links)
• Clarity Services: Request Your Clarity Report
• CFPB Consent Order, In the Matter of Clarity Services, Inc. and Timothy Ranney, File No. 2015-CFPB-0030 (filed Dec. 3, 2015; $8,000,000 civil money penalty)

Updated November 2026. This page is general information, not legal advice.