Category: Credit Report and Collection Abuse

Report Must Contain an Inaccuracy to Be Actionable Against Credit Bureaus

D. Maryland; 4/27/2017; Case No. TDC-14-1180 Ms. Alston filed a case against two credit bureaus for violations of 15 U.S.C. § 1681e and 1681i: failure to maintain procedures to assure maximum possible accuracy and failure to conduct a reinvestigation into dispute information, respectively. Unfortunately, this is one of many cases litigated by Ms. Alston involving the reporting of her Wells Fargo mortgage. In a prior case against Wells Fargo, the Court decided that Wells Fargo’s reporting of her account as delinquent was accurate. This is because the evidence established that Wells Fargo was entitled to collect payments from her during

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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 fails to report that loan delinquency is “disputed.”

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Duty to Investigate Dispute Remains Whether or Not Consumer Responds to Request for Information

Sponer v. Wells Fargo, et al. 3:17-cv-02035-HZ D. Ore – Portland Consumer/Plaintiff was a victim of identity fraud – his ID was used to purchase a vehicle when he was out of the country.  Police arrested the man who used the Plaintiff’s identity, confiscated the stolen vehicle, and obtained a confession from the thief.  Wells Fargo was notified of this through a letter from the Plaintiff.  Wells Fargo contacted the police on multiple occasions they have heard of the incident. The police then confirmed the underlying facts and returned the vehicle to Wells Fargo. Despite this, Wells Fargo refused to

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Collateral Legal Disputes Not Appropriate for FCRA Action

Bornstein v. Trans Union LLC, et al, CV-18-04773-PHX-JJT June 5, 2019 The doctor’s office failed to bill the insurance on time and did not get reimbursed.  A healthcare collection company assumed the debt and debt showed up on the Plaintiff’s credit report. The plaintiff sued under the FDCPA and FCRA stating a claim of negligence and willfulness for failing to remove the tradeline since she didn’t owe the debt; her insurance should have paid. The Court grants Defendants’ Motion to Dismiss the FCRA claims. As to whether or not she owed the money is a legal question, not a factual

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Scales Tipped in Favor of Article III Standing Based on Harm Already Suffered Being Fairly Traceable to Defendant

Hutton, et al. v. National Board of Examiners in Optometry, Inc. 4th Circuit June 12, 2018 Case No. 17-1508 A class took action on behalf of a group of individuals who registered to take the professional optometry licensure exam.  Groups of optometrists began to notice that fraudulent Chase credit card accounts began being opened in their names. The group determined that it was the National Board of Examiners in Optometry, Inc. (NBEO), instead of the American Optometric Association or other similar groups, because only the NBEO stored their social security numbers. Additionally, several of the credit cards were opened with individual

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Inconsistent Disputes Lead to Poor Results

Letren v. Trans Union, LLC, 2017 WL 445237 (D. Md. February 2, 2017) – Judge Xinis In September of 2008, the Plaintiff’s property was foreclosed on. In December of 2009, the Plaintiff filed a Ch. 7 bankruptcy.  Beginning in March of 2010, after Trans Union received notice of the bankruptcy, it began reporting the Chase mortgage account as having been included in the bankruptcy. In 2013, the Plaintiff received a copy of his TransUnion credit report, which was reporting the amount owed at “$0.00” with former terms of “$4,222 per month.” The status of the accounts as listed as “CBL:

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TILA, RESPA and FCRA . . . Oh my!

Cole v. Federal National Mortgage Association, et al., 2017 WL 623465 (D. Md. February 13, 2017) The Plaintiff, Ms. Cole, brought a case against Fannie Mae and Severus, alleging a number of claims under the Truth in Lending Act(TILA), the Real Estate Settlement Procedures Act(RESPA), the Maryland Consumer Debt Collection Act(MCDCA), the Maryland Consumer Protection Act(MCPA), and the Fair Credit Reporting Act(FCRA). Unlike most pro se Plaintiffs, who generally strikeout when throwing a bunch of these claims against the wall, Ms. Cole hits a home run on every one, and it is impressive to see. In 2007, the Plaintiff and

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Sovereign immunity applies to claims against the Government . . . Sometimes

Robinson v. Pennsylvania Higher Education Assistance Agency, et al. 2017 WL 1277429 (D. Md. April 3, 2017)   The Plaintiff alleged that government student loans were fraudulently opened in his name and that he had only permitted Direct Loan to perform a credit check, not to open a loan account in his name. The parties dispute whether or not a “government or governmental subdivision or agency” in the definition of “person” includes the Department of Education, which is a federal agency.   Under the doctrine of “sovereign immunities,” the United States is shielded from suit absent consent to be sued

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Previous case establishing not inaccurate reporting by furnisher bars claim against CRA

Alston v. TransUnion, LLC, 2017 WL 1628420 (D. Md. April 27, 2017)   The Plaintiff, acting pro se, alleges that the CRA’s violated two provisions of the Fair Credit Reporting Act, 15 U.S.C. 1681e(b) and 15 U.S.C. 1681i(a)(1). The Plaintiff alleges that the CRA erroneously relied on the bare, unsupported statements of the furnisher to report that the Plaintiff’s account was delinquent and continued to rely solely on the reporting of the furnisher, in this case, Wells Fargo.   The court, citing Dalton v. Capital Assoc. Indus., Inc., 257 F.3d 409 (4th Cir. 2001), pointed out that the Fourth Circuit

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Claim Against Furnisher Fails Unless dispute made

Flax v. Navient Solutions, Inc., 2017 WL 1153889 (March 28, 2017 D. MD.) Judge Marvin J. Garbis   The Plaintiff checked his credit report and learned that his father had taken out three separate loans from Navient Solutions, Inc. in his name. This was done without the knowledge or consent of the Plaintiff and through by forging his signature.   Included in the Plaintiffs Complaint was a Count for violation of the Fair Credit Reporting Act, Section 1681s-2(b). Under this section, those who furnish information to the credit reporting agencies have a responsibility to investigate the accuracy of reported information

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