A District Court judge in Pennsylvania has dismissed a Fair Debt Collection Practices Act and Fair Credit Reporting Act case against a collector that was accused of violating both statutes by reporting information to the credit reporting agencies, without the plaintiff’s permission. The plaintiff’s primary claim was that because she did not approve or permit the defendant to have the information it used to report her debt, she was the victim of identity theft and the defendant failed to note the account as such.
The Background: The plaintiff looked at her credit report last August and noticed an entry from the defendant, which was furnishing information about an unpaid cell phone debt.
- The plaintiff filed sent the defendant a letter saying she was a victim of identity theft and including an identity theft affidavit.
- The plaintiff claimed the defendant obtained her non-public information without her consent or any prior notice. She claimed to have disputed the debt with the defendant and the credit reporting agencies and that the dispute was not investigated.
- The negative item on her credit report caused her to be denied for a loan, caused the plaintiff’s reputation to be affected, and led to her taking anti-depressants, which made her drowsy.
The Ruling: While claiming to be the victim of identity theft, the plaintiff never disavowed ownership of the underlying cell phone debt, noted Judge Wendy Beetlestone of the District Court for the Eastern District of Pennsylvania. Her claim of identity theft was tied to the defendant obtaining information about her without her consent. Noting that there is no opt-out provision of the FCRA, Judge Beetlestone dismissed the plaintiff’s FCRA claims.
- Regarding the plaintiff’s FDCPA claims, there was nothing resembling an injury, the judge noted. The closest the plaintiff came was possibly asserting a claim under Section 1692e(8) of the FDCPA, but there is nothing false or wrong with the defendant failing to obtain the plaintiff’s consent prior to either purchasing the account or reporting it to the credit bureaus, Judge Beetlestone ruled.
