District Court (Nev.) Says Reporting of BK Was Accurate under FCRA

In Ku v. Trans, No. 2:18-CV-1714 JCM (BNW), 2020 U.S. Dist. LEXIS 27474 (D. Nev. Feb. 18, 2020), Judge Mahan ruled against an FCRA Plaintiff alleging inaccurate reporting of a bankrupt account.

Unsurprisingly, information in a consumer report is inaccurate if it is patently incorrect. Carvalho, 629 F.3d at 890. Even if information is “technically accurate,” however, it may be inaccurate for the purpose of an FCRA claim “if the statement is presented in such a way that it creates a misleading impression.” Gorman v. Wolpoff & Abramson, LLP, 584 F.3d 1147, 1163 (9th Cir. 2009) (citation omitted). Thus, an FCRA claim can be maintained where information, although accurate, is “misleading in such a way and to such an extent that it can be expected to adversely affect credit decisions.” Carvalho, 629 F.3d at 890 (quoting Gorman, 584 F.3d at 1163). Here, both of Ku’s FCRA claims fail because he cannot show an inaccuracy in Equifax’s consumer report. Equifax listed three of Ku’s accounts as “included in bankruptcy,” noted “chapter 7 bankruptcy,” indicated that the accounts were “closed.” (ECF No. 67 at 2-3). Equifax listed the accounts with a $0 balance, $0 amount past due, $0 actual payment account, and $0 scheduled payment. Id. at 3. Further, the public records section of Ku’s credit file indicated that his chapter 7 bankruptcy was discharged. Id. Ku does not dispute the actual accuracy of the information in his credit report. (See ECF No. 80). Instead, Ku argues that “Equifax’s reporting of the furnishers’ trade lines, though technically accurate, is misleading because it contains a material omission.” Id. at 5. In particular, Ku contends—without citation to authority—that “included in bankruptcy” is misleading because it is not the same as “discharged in bankruptcy.” Id. However, as Equifax points out, the three accounts all indicate that they were “included in bankruptcy” and specifically reference “chapter 7 bankruptcy.” (ECF No. 83 at 5). As a result, anyone referring to Ku’s credit report can see that the accounts were included in his chapter 7 bankruptcy and can also see that his chapter 7 bankruptcy resulted in a discharge. Thus, the information in Ku’s credit report is neither inaccurate nor misleading. Because Ku has not shown an inaccuracy in his credit report, his FCRA claims necessarily fail. The court grants Equifax’s motion for summary judgment.