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DISCLAIMER: This article is based on a complaint. The defendant has not responded to the complaint to present its side of the case. The claims mentioned are accusations and should be considered as such until and unless proven otherwise.
A collection operation is facing a Fair Debt Collection Practices Act lawsuit for allegedly falsely reporting to the credit reporting agencies that a debt had been previously in dispute and that an investigation had been completed, when the plaintiff was still attempting to dispute the debt. This lawsuit speaks to ensuring that the proper compliance condition codes are assigned to accounts when furnishing information to the credit bureaus.
The Background: Last December, the plaintiff checked her credit reporting and noticed that the defendant was reporting information about a debt. The plaintiff disputed the debt to the defendant shortly thereafter.
- In February, the plaintiff checked her credit report again and the debt in question was being reported as “Account previously in dispute, investigation complete, reported by data furnisher.”
- The plaintiff then sent another letter to the defendant, disputing the debt again. The plaintiff explained in her letter that the defendant was falsely reporting the debt as previously disputed because the debt was still being disputed.
- On April 18, the plaintiff checked her credit report again and the defendant had updated her account information as of April 1. The debt was being reported as “Account previously in dispute, investigation complete, reported by data furnisher.”
- The actions of the defendant have made it harder for the plaintiff to obtain employment, housing, and credit for her day-to-day needs, according to the complaint. The plaintiff has also suffered stress, anxiety, and depression, as well as pain, nausea, and stomach issues.
The Claims: The complaint accuses the defendant of violating Section 1692e(8) of the FDCPA by reporting information to the credit reporting agencies that it knew to be false.
- The complaint also accuses the defendant of violating state law in Florida, where the complaint was filed.
