Furnisher Reinvestigation

In Vandonzel v. JP Morgan Chase Bank, et. al., No. 17-CV-01819-LHK, 2017 WL 3267571 (N.D. Cal., July 31, 2017), Judge Koh denied a furnisher's FRCP 12b6 Motion in an FCRA case. However, Gorman does not support Chase’s argument that an investigation of disputed information is narrowly limited to the exact wording of the dispute letter. In Gorman, the Ninth Circuit… Read More

In Ritchie v. Lease Finance Group, LLC, et. al., 2017 WL 2963462, at *2 (C.A.2 (N.Y.), 2017), the Court of Appeals for the Second Circuit said that it was the substance of the reinvestigation, not the time spent on it, that matters under the FCRA. Ritchie argues that when Experian notified defendants that Ritchie's signature was disputed, FCRA required them… Read More

In Boyd v. Wells Fargo Bank, N.A., 2016 WL 7323293, at *6–9 (S.D.Ga., 2016), Judge Wood found that a Furnisher's reinvestigation of a FCRA dispute was reasonable and that the Plaintiff had suffered no damages.    Boyd is a nuclear submarine missile technician, who executed a power of attorney authorizing his then-wife, Siana Boyd, “to borrow money and to execute in… Read More

In Aubert v. Russell Collection Agency, Inc. 2016 WL 5430184, at *2–3 (E.D.Mich., 2016), Magistrate Judge Patti held that a furnisher's "reinvestigation" requires a different kind of investigation (i.e. less) "validation" under the FDCPA. Whether verification is a requisite function in conducting a reasonable investigation?  Answering this question in the affirmative, Plaintiff cites a Senate Report, which provides:  "Currently, the… Read More

In Blakeney v. Experian Information Solutions, Inc., 2016 WL 4270244, at *4–6 (N.D.Cal., 2016), Judge Koh dismissed a FCRA claim grounded in debt collectors' reporting of an account passing through Chapter 13 bankruptcy. As to Plaintiff's first theory of liability, the FCRA requires a furnisher to “conduct an investigation with respect to the disputed information” after the furnisher receives notice… Read More

In Hinkle v. Midland Credit Management, Inc., 2016 WL 3672112, at *4-8 (C.A.11 (Ga.), 2016), the Court of Appeals for the 11th Circuit reversed summary judgment for a debt buyer on the plaintiff's reinvestigation under FCRA, finding that more investigation was required than checking the dispute against its electronic records. When the CRAs informed Midland that Hinkle disputed the GE/Meijer… Read More

In Maiteki v. Marten Transport Ltd., 2016 WL 3747396, at *1 (10th Cir.  2016), the Court of Appeals for the 10th Circuit affirmed judgment in favor of a furnisher against a FCRA plaintiff's claim that the furnisher inadequately re-investigated a credit dispute.  The facts did not necessarily arise out of a consumer transaction.   Marten is a transportation company that employed… Read More

In Blakeney v. Experian Information Solutions, 2016 WL 1535085, at *1-2 (N.D.Cal., 2016), Judge Koh grants a Motion to Dismiss filed by a FCRA furnisher who was alleged to have failed to properly re-investigate a dispute regarding an account that passed through Chapter 13. On November 7, 2014, Plaintiff filed for Chapter 13 bankruptcy. ECF No. 1 (“Compl.”) ¶ 5. “Chapter… Read More

In Powers v. Selcon Community Credit Union, et. al., 2016 WL 126739, at *4-5 (D.Or. 2016), Judge McShane denied summary judgment to a FCRA furnisher defendant on the reasonableness of its re-investigation.  The takeaways from the decision are four, from someone who has handled a number of such cases.  First, the decision demonstrates how granular these cases can get in terms of… Read More

In Prosser v. Navient Solutions, Inc., 2015 WL 5168635 (N.D. Cal. 2015), Judge Conti found that a student loan lender conducted a reasonable re-investigation under FCRA after the Plaintiff claimed to be a victim of identity theft. Parties agree that there is only a private right of action to pursue claims pursuant to 15 U.S.C. § 1681s–2(b), under §§ 1681n &… Read More

In Gustafson v. Experian Info. Solutions Inc., No. 2:14-CV-01453-ODW EX, 2015 WL 3477071, at *6 (C.D. Cal. June 2, 2015), Judge Wright granted summary judgment to a debt collector on a Plaintiff's FCRA claim, alleging that the debt was "double-reported". “[S]ummary judgment is not precluded altogether on questions of reasonableness,” but “[i]t is only appropriate ‘when only one conclusion about the… Read More

In Horsch v. Wells Fargo Home Mortg., 2015 WL 1344836 (E.D.Pa. 2015), Judge Yohn found that furnishers had properly reported accounts post-bankruptcy where the debtors had made post-bankruptcy payments.  Judge Yohn explained the standards for a furnishers’ re-investigation even where it was conceded that the furnishers’ re-investigation was reasonable. The court cautioned that this issue “is normally a question for… Read More

In Davidson v. Capital One, N.A., 2014 WL 6682532 (S.D.Fla. 2014), Judge Altonago found that a FCRA Plaintiff must prove inaccuracy in the credit reporting, even if a furnisher did not conduct an adequate re-investigation. Capital One argues an FCRA plaintiff must establish the underlying information reported to the CRA is incorrect. (See Capital One Mot. 10). The Davidson Response… Read More

In Desselle v. Ford Motor Credit Co. LLC,  2014 WL 4635545 (E.D.La. 2014), Judge Fallon dismissed a FCRA claim against an automobile finance company. Here, Desselle does not allege that the three credit reporting agencies notified Ford Credit of the dispute. He merely asserts that he himself notified the three credit reporting agencies and Ford Credit, and that Ford Credit failed to… Read More

In Calhoun v. Certegy Check Services, Inc., 2014 WL 4146886 (M.D.Fla. 2014), Judge Whittemore found that a Plaintiff stated a FCRA claim against a check services company for failing to report an account as ‘disputed’ during its reinvestigation. Plaintiff brought this action alleging violations of the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681 et seq., the Fair Debt… Read More

In a Bulletin and Report, the CFPB warned furnishers of consumer data information to consumer reporting agencies that they must comply with FCRA's re-investigation requirements.  And, in a shot across the bow, the CFPB stated that merely deleting a trade-line does not by itself comply with FCRA's reinvestigation requirements.  The CFPB warned: A furnisher should not assume that it ceases to… Read More

In Callahan v. Equifax Information Services LLC, 2013 WL 5503949 (N.D.Cal. 2013), Judge Alsup found that Plaintiff could state a FCRA claim in an SSN-swap situation.  The proposed pleading alleged that Plaintiff’s credit reports indicated that a SunTrust mortgage account was associated with her. Plaintiff disputed the mortgage account and the CRAs notified SunTrust. Although plaintiff's SSN did not match… Read More

In McDonald v. OneWest Bank, FSB, 2013 WL 858197 (W.D.Wash. 2013), Judge Lasnik found a triable issue of fact as to a furnisher’s reinvestigation under FCRA, finding that the furnisher can not rely solely on the information provided to it by the CRA when the furnisher has other information available to it to investigate. Plaintiff bears the burden of showing… Read More

In Modica v. American Suzuki Financial Services Co., 2013 WL 656495 (D.Ariz. 2013), Judge Campbell appeared to hold that a consumer need not prove inaccuracy in order to state a FCRA re-investigation claim, as the accuracy question goes only to the question of damages. On December 8, 2005, Plaintiff and her daughter Jacklyn Modica executed an agreement for a lease… Read More

In Mortimer v. Bank of America, N.A.  2012 WL 6218004 (N.D.Cal. 2012), Judge Spero addressed the interplay between bankrupt debt and credit reporting, finding that Plaintiff stated no FCRA or CCRAA claim.  The facts were as follows: Plaintiff Mark Mortimer (“Plaintiff”) brings this action against Defendant Bank of America, N.A., (“Defendant”) FN1 seeking redress for Defendant's alleged inaccurate reporting of his… Read More