News Release: https://protect-us.mimecast.com/s/QQeeBDuJmEDSg Letter to Financial Institutions: http://files.consumerfinance.gov/f/201602_cfpb_letter-to-banks-on-lower-risk-accounts.pdf Bulletin: http://files.consumerfinance.gov/f/201602_cfpb_supervisory-bulletin-furnisher-accuracy-obligations.pdf Read More
In Brill v. TransUnion, 2015 WL 9095103, at *1-2 (W.D.Wis. 2015), Judge Crocker dismissed a FCRA claim against TransUnion arising out of a vehicle co-lessee’s claims that the primary lessee forged his signature on a lease extension and then defaulted on it. The facts, apparently, arising out of a failed relationship, are not all that uncommon. On or about May… Read More
In Wright v. Experian Information Solutions, Inc., 2015 WL 6941273, at *4-6 (C.A.10 (Colo.),2015), the Court of Appeals for the Tenth Circuit said that the CRAs employed proper procedures to determine the accuracy of public liens. As noted above, the CRAs relied on LexisNexis to collect information from the Recorder's office. LexisNexis employs a collector to retrieve information from the Recorder's… Read More
In Longman v. Wachovia Bank, N.A. --- F.3d ----, 2012 WL 6604538 (2d Cir. 2012), the Court of Appeals for the Second Circuit followed Nelson to find no private right of action under 15 USC 1681s-2(a). Although we have not previously addressed whether the Fair Credit Reporting Act provides a private cause of action for violations of § 1681s–2(a), the statute plainly restricts… Read More
In Saccato v. Discover Financial Services, Inc., 2012 WL 5951490 (9th Cir. 2012), the Court of Appeals for the Ninth Circuit held in an unpublished decision that the district court properly dismissed a FCRA claim under 15 U.S.C. § 1681s–2(b) because the Plaintiff failed to plead that the CRA notified the furnisher of the dispute. The district court properly concluded… Read More
In Noel v. Bank of America, 2012 WL 5464608 (N.D.Cal. 2012), Judge Conti dismissed a consumer’s FDCPA and FCRA claims against a Bank. The facts were as follows: Plaintiff alleges that she paid off any debt she may once have owed to BOA. Compl. ¶ 13. She alleges that, in 2009, she sought assistance from counsel to address BOA's allegedly… Read More
In Keshishian v. AFNI Inc., 2012 WL 5378819 (C.D.Cal. 2012), Judge Feess dismissed Plaintiff’s claims as improvidently pleaded. Plaintiff Marine A. Keshishian alleges that Defendants Afni, Inc., Enhanced Recovery Company, LLC, Equable Ascent Financial, LLC (“Equable”), and Union Adjustment Company, Inc. are engaged in unfair debt collection practices. (Docket No. 3 [Compl.].) Specifically, Plaintiff alleges violations of the Federal Fair… Read More
In Mortimer v. JP Morgan Chase Bank, Nat. Ass'n, 2012 WL 3155563 (N.D.Cal. 2012), Judge Wilken addressed the impact of a now commonly-pleaded claim that a creditor continued to report late payments that were not made during a bankruptcy. Judge Wilkens found that Plaintiffs failed to plead an inaccuracy – meaning that they actually made the payments during the bankruptcy… Read More
In Reed v. First Premier Bank, 2011 WL 6153100 (D.S.D. 2011), Judge Schreier found for a furnisher against a consumer's claim that the furnisher failed to report the account as disputed. Judge Schreier explained: A furnisher cannot be held liable under section 1681s–2(b) simply for failing to report that a debt is disputed. Rather, a furnisher may only be liable if the… Read More
In Corby v. American Exp. Co., 2011 WL 4625719 (C.D.Cal. 2011), Judge Wright found that, under Nelson, a consumer can only recover under FCRA for a section 1681s-2(b) claim – meaning, the consumer must first dispute the claim with the credit reporting agency. Judge Wright as a corollary therefore held that a consumer can not recover for wrongful or inaccurate… Read More
In SimmsParris v. Countrywide Financial Corp., --- F.3d ----, 2011 WL 3196079 (3d Cir. 2011), the Court of Appeals for the Third Circuit affirmed FCRA’s statutory framework that a consumer must first dispute a report with the CRA in order to maintain a cause of action under 15 U.S.C. § 1681s–2(b). In the present case, SimmsParris did not comply… Read More
One could say that "Bank Error in Your Favor" did not entitle the FCRA Plaintiff to $200. In Ross v. F.D.I.., --- F.3d ----, 2010 WL 4261819 (4th Cir. 2010), the Court of Appeals found no malice when a Bank acted merely negligently under FCRA. The facts were a bit complicated: James Williams executed a mortgage on a home… Read More
On July 1, and effective July 1, 2010, July 1, 2009 Inter-agency FACTA Rule 974 Fed. Reg. 31484 (2009) was issued defining the obligations imposed on furnishers of credit reporting information. The history behind the July 1, 2009 Inter-Agency Rule is as follows. FACTA and Implementing Regulations On December 4, 2003, Congress passed the Fair and Accurate Transactions Act, which amended the… Read More
In Marshall v. Swift River Academy, 2009 WL 1112768 (9th Cir. 2009), the Court of Appeals for the Ninth Circuit confirmed (for the third time) that 15 USC 1681s-2(a) affords no private right of action. Marshall may not maintain a claim under the FCRA for violation of Section 1681s-2(a), which imposes certain duties on those who furnish information to… Read More
See my March 4, 2009 article in the Consumer Financial Services Law Report here. Source: Consumer Financial Services Law Report. Copyright 2009 by LRP Publications, P.O. Box 24668, West Palm Beach, FL 33416-4668. All rights reserved. For more information on this or other products published by LRP Publications, please call 1-800-341-7874 or visit their website at: www.shoplrp.com Read More
In Sanai v. Saltz --- Cal.Rptr.3d ----, 2009 WL 162059 (2009), the Second District Court of Appeal declined to follow the First District Court of Appeal's decision in Liceaga on December 30, 2008, finding a private right of action under the CCRAA (Civil Code § 1785.25(a)) pre-empted by FCRA. Instead, the Second District Court of Appeal followed the Court of… Read More
In Gorman v. Wolpoff & Abramson, LLP, __ F.3d __ 2009 WL 57091 (9th Cir. 2009) the Court of Appeals for the Ninth Circuit held, among other things, that FCRA does not pre-empt Civil Code 1785.25 of the CCRAA. This holding overrules multiple district court opinions to the contrary, and is opposite to the California Court of Appeal's decision on December… Read More
In Liceaga v. Debt Recovery Solutions, L.L.C. __ Cal.App.4th __ 2008 WL 5392184 (2008), the First District Court of Appeal found no private right of action under California's Consumer Credit Reporting Agencies Act because FCRA pre-empts it. The Court explained We are not alone in our determination that the California exception is limited and does not allow a private right… Read More
