Owen’s Motion to Dismiss FCRA Claims Denied

A federal court denied Owen’s Motion to Dismiss the plaintiff’s claims under the Fair Credit Reporting Act (FCRA).

Polvorosa v. Allied Collection Services, et al, U.S.D.C Nev. Jan. 3, 2017

Facts:  The plaintiff Polvorosa, alleged that the defendants violated the Fair Credit Reporting Act (FCRA).  In 2011, the plaintiff filed Chapter 13 bankruptcy, and the bankruptcy was discharged in 2015.  Plaintiff alleged after the discharge, any report of a balance greater than than $0 was inaccurate because the debts were discharged in bankruptcy.  Specifically, the plaintiff alleged Ocwen reported that the plaintiff owed $145,313.00 and was past due in the amount of $18,448.00.

Procedural History:  Defendant Ocwen moved for dismissal of plaintiff’s claim under the Fair Debt Collection Practices Act (FDCPA) claim for failure to state a claim (ECF No. 16), and the plaintiff moved for partial summary judgment on the issue of liability based on Ocwen’s reporting of inaccurate information on his credit report.

Analysis:  “The ‘pertinent question’ in analyzing the adequacy of the furnisher’s investigation, is ‘whether the furnisher’s procedures were reasonable in light of what it learned about the nature of the dispute from the description in the CRA’s notice of dispute.’ Id. at 1157. Plaintiff bears the burden of showing that the investigation was unreasonable. See id. at 1163; see also Chiang v. Verizon New England Inc., 595 F.3d 26, 37 (1st Cir. 2010).

Holding:  The court held the plaintiff sufficiently plead a claim under the FCRA against Ocwen. Specifically, the plaintiff “alleged (1) that he identified an inaccuracy in his credit report dated September 15, 2015, regarding Ocwen’s reporting that he owed an outstanding balance and was past due, (2) that he disputed the information on December 16, 2015, by notifying Equifax of the inaccurate information furnished by Ocwen, (3) that Equifax in turn timely notified Ocwen of the dispute, and (4) that Ocwen failed to conduct a reasonable investigation, failed to review all of the relevant information plaintiff provided in the dispute to Equifax, and failed to correct and update plaintiff’s information. (ECF No. 4).”

Do you have errors on your credit report?  Has your bankruptcy been discharged, but your creditors are still reporting a balance owed on your account?  Contact The Adkins Firm for a free case review today by calling 1-800-263-9091 24/7.