Failure to Mark Tradeline “Disputed” is a Violation of the FCRA
Hrebal v. Nationstar Mortgage LLC Case No. 17-cv-1815; D. Minn., June 14, 2019 The U.S. District Court granted summary judgment for the Plaintiff on a motion for reconsideration on the ground that the mortgage company negligently violated the Fair Credit Reporting Act when it repeatedly failed to report the consumer’s account as “disputed” in responses to the at-issue ACDV’s. The Court determined that there are no material factual disputes for a jury to resolve with respect to liability: the FCRA imposes liability on “furnishers” of consumer credit information, like Mr. Cooper, who fail to report that a loan delinquency is “disputed,” is a “reasonable investigation” could have uncovered that a borrower’s dispute with that delinquency was “bona fide” or ‘potentially meritorious.” This is so because reporting that a delinquency is, in fact, disputed may be necessary to prevent the dissemination of “materially misleading” consumer credit information. In this case, it…Read More
