FCRA Credit Report Dispute Complaint - Kansas

COMPLAINT FOR VIOLATIONS OF THE FAIR CREDIT REPORTING ACT AND THE KANSAS FAIR CREDIT REPORTING ACT

OPTION A — FEDERAL FORUM

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF KANSAS
[KANSAS CITY / TOPEKA / WICHITA] DIVISION

Case No. [____________]

OPTION B — STATE FORUM

IN THE DISTRICT COURT OF [________________________________] COUNTY, KANSAS

Case No. [____________]

COMPLAINT AND DEMAND FOR JURY TRIAL

Plaintiff [PLAINTIFF FULL LEGAL NAME] ("Plaintiff"), by and through undersigned counsel, brings this action against Defendant [CONSUMER REPORTING AGENCY] (the "CRA Defendant") and Defendant [FURNISHER NAME] (the "Furnisher Defendant") (collectively, "Defendants"), and alleges as follows:

I. NATURE OF THE ACTION

1. This is an action for damages brought by an individual consumer against a consumer reporting agency and a furnisher of information arising under the federal Fair Credit Reporting Act, 15 U.S.C. § 1681 et seq. ("FCRA"), and the Kansas Fair Credit Reporting Act, K.S.A. § 50-701 et seq. ("Kansas FCRA").

2. The CRA Defendant prepared and disseminated consumer credit reports containing inaccurate information concerning Plaintiff and, after Plaintiff disputed that information, failed to follow reasonable procedures to assure maximum possible accuracy and failed to conduct a reasonable reinvestigation, in violation of 15 U.S.C. §§ 1681e(b) and 1681i and K.S.A. §§ 50-706(b) and 50-710.

3. The Furnisher Defendant, after receiving notice of Plaintiff's dispute from the CRA Defendant, failed to conduct a reasonable investigation and continued to report inaccurate information, in violation of 15 U.S.C. § 1681s-2(b).

II. JURISDICTION AND VENUE

4. Subject-Matter Jurisdiction (Federal Forum). This Court has federal-question jurisdiction under 28 U.S.C. § 1331 and 15 U.S.C. § 1681p, which provides that an action to enforce liability under the FCRA may be brought in "any appropriate United States district court ... or in any other court of competent jurisdiction." This Court has supplemental jurisdiction over the Kansas FCRA and Kansas Consumer Protection Act claims under 28 U.S.C. § 1367.

5. Subject-Matter Jurisdiction (State Forum). Alternatively, the Kansas District Court has jurisdiction because 15 U.S.C. § 1681p confers concurrent jurisdiction on any court of competent jurisdiction, and K.S.A. § 50-717 authorizes an action to enforce liability under the Kansas FCRA in any court of competent jurisdiction.

6. Personal Jurisdiction. Each Defendant regularly conducts business in Kansas and committed the acts and omissions complained of in Kansas, and therefore is subject to the jurisdiction of this Court.

7. Venue. For a federal filing, plead facts satisfying one specific 28 U.S.C. § 1391(b) route: (1) a district where any defendant resides if all defendants reside in the forum State; (2) a district where a substantial part of the events or omissions occurred; or (3), only if no district is otherwise available, a district where a defendant is subject to personal jurisdiction for the action. Plaintiff's residence or a generic statement that a defendant transacts business in the forum is not enough by itself.

III. PARTIES

8. Plaintiff. Plaintiff is a natural person residing in [CITY], [________________________________] County, Kansas, and is a "consumer" as defined by 15 U.S.C. § 1681a(c) and K.S.A. § 50-702(b).

9. CRA Defendant. Defendant [CONSUMER REPORTING AGENCY] is a [corporation/LLC] organized under the laws of [STATE] with its principal place of business at [ADDRESS]. It is a "consumer reporting agency" as defined by 15 U.S.C. § 1681a(f) and K.S.A. § 50-702(e) because, for monetary fees, dues, or on a cooperative nonprofit basis, it regularly assembles and evaluates consumer credit information for the purpose of furnishing consumer reports to third parties.

10. Furnisher Defendant. Defendant [FURNISHER NAME] is a [corporation/LLC/bank/collection agency] with its principal place of business at [ADDRESS]. It is a "furnisher" of information that regularly provides information about consumers, including Plaintiff, to one or more consumer reporting agencies for inclusion in consumer reports, and is a "person" within the meaning of K.S.A. § 50-702(a).

IV. FACTUAL ALLEGATIONS

11. The Inaccurate Item. Plaintiff's consumer file maintained by the CRA Defendant contains the following inaccurate item of information (the "Disputed Item"):
    - Creditor/Furnisher Name: [________________________________]
    - Account Number (last 4): [____]
    - What the report inaccurately states: [DESCRIBE — e.g., account reported as charged-off/late/open with balance of $[AMOUNT]]
    - What is true and accurate: [DESCRIBE — e.g., account was paid in full / never belonged to Plaintiff / discharged in bankruptcy]

12. Type of inaccuracy (check all that apply):
    ☐ Account does not belong to Plaintiff (mixed file / identity theft)
    ☐ Balance, payment history, or account status is incorrect
    ☐ Account was paid, settled, or discharged in bankruptcy and is reported otherwise
    ☐ Obsolete information being reported beyond the period allowed by 15 U.S.C. § 1681c / K.S.A. § 50-704
    ☐ Duplicate reporting of the same debt
    ☐ Other: [________________________________]

13. The Written Dispute to the CRA. On or about [__/__/____], Plaintiff sent a written dispute to the CRA Defendant identifying the Disputed Item, explaining why it is inaccurate, and enclosing supporting documentation. The dispute was sent by [certified mail / the CRA's online portal] and received by the CRA Defendant on or about [__/__/____].

14. The CRA's Failed Reinvestigation. Federal law required the CRA Defendant to complete a free reasonable reinvestigation within thirty (30) days under 15 U.S.C. § 1681i(a)(1), subject only to the limited extension of no more than fifteen (15) additional days when the consumer supplies relevant information during the initial period, and to notify the furnisher within five (5) business days under § 1681i(a)(2). K.S.A. § 50-710(a) separately required reinvestigation within a reasonable time and prompt deletion of inaccurate or unverifiable information. The CRA Defendant failed to conduct a timely reasonable reinvestigation and instead [parroted the furnisher's verification / "verified" the item without meaningful review / failed to forward all relevant information to the furnisher / failed to respond]. The CRA Defendant continued to report the Disputed Item as accurate.

15. Notice to and Failure by the Furnisher. Pursuant to 15 U.S.C. § 1681i(a)(2), the CRA Defendant forwarded notice of Plaintiff's dispute to the Furnisher Defendant. Upon receiving that notice, the Furnisher Defendant was required by 15 U.S.C. § 1681s-2(b) to conduct its own investigation, review all relevant information provided by the CRA, report the results, and correct or delete information found to be inaccurate or incomplete. The Furnisher Defendant failed to do so and continued to furnish the inaccurate Disputed Item.

16. Harm to Plaintiff. As a direct and proximate result of Defendants' conduct, Plaintiff suffered harm, including: ☐ denial of credit, ☐ a higher interest rate or less favorable credit terms, ☐ denial of [employment/housing/insurance], ☐ damage to credit score and creditworthiness, ☐ out-of-pocket costs, and ☐ emotional distress, humiliation, frustration, and lost time spent disputing the inaccuracy.

V. CAUSES OF ACTION

COUNT I — Violation of 15 U.S.C. § 1681e(b) (CRA Defendant)

Failure to follow reasonable procedures to assure maximum possible accuracy

17. Plaintiff re-alleges and incorporates paragraphs 1–16.

18. Section 1681e(b) provides: "Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates."

19. The CRA Defendant prepared and published consumer reports concerning Plaintiff that contained the inaccurate Disputed Item and failed to follow reasonable procedures to assure maximum possible accuracy.

20. The CRA Defendant's violation was willful (15 U.S.C. § 1681n) or, in the alternative, negligent (15 U.S.C. § 1681o), entitling Plaintiff to the damages set forth below.

COUNT II — Violation of 15 U.S.C. § 1681i (CRA Defendant)

Failure to conduct a reasonable reinvestigation

21. Plaintiff re-alleges and incorporates paragraphs 1–16.

22. Upon receiving Plaintiff's dispute, the CRA Defendant was required by 15 U.S.C. § 1681i to complete a reasonable reinvestigation within the applicable thirty-day period, notify the Furnisher Defendant within five business days, forward all relevant information, and promptly delete or modify information found inaccurate, incomplete, or unverifiable.

23. The CRA Defendant failed to conduct a reasonable reinvestigation and failed to delete or correct the inaccurate Disputed Item, in willful or negligent violation of § 1681i.

COUNT III — Violation of 15 U.S.C. § 1681s-2(b) (Furnisher Defendant)

Failure to investigate after notice of dispute

24. Plaintiff re-alleges and incorporates paragraphs 1–16.

25. After receiving notice of Plaintiff's dispute from the CRA Defendant pursuant to 15 U.S.C. § 1681i(a)(2), the Furnisher Defendant was required by 15 U.S.C. § 1681s-2(b) to investigate, review all relevant information, report the results, and correct or delete inaccurate or incomplete information.

26. The Furnisher Defendant failed to conduct a reasonable investigation and continued to furnish the inaccurate Disputed Item, in willful or negligent violation of § 1681s-2(b).

COUNT IV — Violation of the Kansas Fair Credit Reporting Act, K.S.A. § 50-701 et seq. (CRA Defendant)

27. Plaintiff re-alleges and incorporates paragraphs 1–16.

28. The Kansas FCRA requires that "[w]henever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates." K.S.A. § 50-706(b). The CRA Defendant violated this duty by preparing and publishing reports containing the inaccurate Disputed Item without following reasonable procedures to assure maximum possible accuracy.

29. The Kansas FCRA further provides, at K.S.A. § 50-710(a), that if the completeness or accuracy of any item of information is disputed by a consumer and the dispute is directly conveyed to the consumer reporting agency, the agency "shall within a reasonable period of time reinvestigate and record the current status of that information unless it has reasonable grounds to believe that the dispute by the consumer is frivolous or irrelevant," and "[i]f after such reinvestigation such information is found to be inaccurate or can no longer be verified, the consumer reporting agency shall promptly delete such information." The CRA Defendant violated § 50-710 by failing to conduct a reasonable reinvestigation and by failing to delete or correct the inaccurate Disputed Item.

30. The CRA Defendant's violations of the Kansas FCRA were willful within the meaning of K.S.A. § 50-715 or, in the alternative, negligent within the meaning of K.S.A. § 50-716.

31. Pursuant to K.S.A. § 50-715, for a willful violation Plaintiff is entitled to recover actual damages, such amount of punitive damages as the court may allow, and the costs of the action together with reasonable attorney's fees. Pursuant to K.S.A. § 50-716, for a negligent violation Plaintiff is entitled to recover actual damages and the costs of the action together with reasonable attorney's fees.

COUNT V — Violation of the Kansas Consumer Protection Act, K.S.A. § 50-623 et seq. (Both Defendants) — Pleaded in the Alternative

32. Plaintiff re-alleges and incorporates paragraphs 1–16.

33. To the extent Defendants are "suppliers" and the conduct at issue arose in connection with a "consumer transaction" within the meaning of K.S.A. § 50-624, Defendants engaged in deceptive acts and practices (K.S.A. § 50-626) and/or unconscionable acts and practices (K.S.A. § 50-627) by misrepresenting and continuing to report the inaccurate Disputed Item.

34. Pursuant to K.S.A. §§ 50-634 and 50-636, Plaintiff is entitled to the greater of actual damages or a civil penalty of up to $10,000 per violation, plus injunctive relief and reasonable attorney's fees and costs. The Kansas Consumer Protection Act shall be construed liberally to protect consumers. K.S.A. § 50-623(b).

VI. DAMAGES

35. As a result of the willful FCRA violations, Plaintiff is entitled under 15 U.S.C. § 1681n to actual damages or statutory damages of not less than $100 and not more than $1,000, punitive damages, and reasonable attorney's fees and costs.

36. In the alternative, for negligent FCRA violations, Plaintiff is entitled under 15 U.S.C. § 1681o to actual damages and reasonable attorney's fees and costs.

37. Under the Kansas FCRA, Plaintiff is entitled to actual damages and reasonable attorney's fees and costs (K.S.A. §§ 50-715, 50-716), plus punitive damages for willful violations (K.S.A. § 50-715(b)).

38. This action is timely under 15 U.S.C. § 1681p (the earlier of two years after discovery or five years after the violation) and under K.S.A. § 50-717, which requires an action under the Kansas FCRA to be brought within two years from the date on which the liability arises (subject to the misrepresentation tolling provision therein).

VII. PRAYER FOR RELIEF

WHEREFORE, Plaintiff respectfully requests that the Court enter judgment against Defendants and award:

A. Actual damages in an amount to be proven at trial;
B. Statutory damages of $100 to $1,000 under 15 U.S.C. § 1681n;
C. Punitive damages under 15 U.S.C. § 1681n and punitive damages as the court may allow under K.S.A. § 50-715(b);
D. Injunctive or equitable relief directing deletion or correction of the inaccurate Disputed Item;
E. Reasonable attorney's fees and costs under 15 U.S.C. §§ 1681n and 1681o and K.S.A. §§ 50-715(c) and 50-716(b);
F. Pre- and post-judgment interest as allowed by law; and
G. Such other and further relief as the Court deems just and proper.

VIII. DEMAND FOR JURY TRIAL

Pursuant to the Seventh Amendment to the United States Constitution and Rule 38 of the Federal Rules of Civil Procedure (or K.S.A. § 60-238 in state forum), Plaintiff demands a trial by jury on all issues so triable.

IX. SIGNATURE

Respectfully submitted,

Dated: [__/__/____]

________________________________
[ATTORNEY NAME], Kansas Bar No. [____________]
[LAW FIRM NAME]
[ADDRESS]
[CITY, STATE ZIP]
Telephone: [________________________________]
Email: [________________________________]
Counsel for Plaintiff

X. VERIFICATION

I, [PLAINTIFF FULL LEGAL NAME], declare under penalty of perjury under the laws of the United States and the State of Kansas that I have read the foregoing Complaint and that the factual allegations contained therein are true and correct to the best of my knowledge, information, and belief.

Executed on [__/__/____] at [CITY], Kansas.

________________________________
[PLAINTIFF FULL LEGAL NAME]

Sources and References

• 15 U.S.C. § 1681e(b) — Compliance procedures / accuracy of report: https://www.law.cornell.edu/uscode/text/15/1681e
• 15 U.S.C. § 1681i — Procedure in case of disputed accuracy: https://www.law.cornell.edu/uscode/text/15/1681i
• Official current 15 U.S.C. § 1681i text: https://uscode.house.gov/view.xhtml?req=granuleid:USC-prelim-title15-section1681i&num=0&edition=prelim
• 15 U.S.C. § 1681s-2 — Responsibilities of furnishers of information: https://www.law.cornell.edu/uscode/text/15/1681s-2
• 15 U.S.C. § 1681n — Civil liability for willful noncompliance: https://www.law.cornell.edu/uscode/text/15/1681n
• 15 U.S.C. § 1681o — Civil liability for negligent noncompliance: https://www.law.cornell.edu/uscode/text/15/1681o
• 15 U.S.C. § 1681p — Jurisdiction of courts; limitation of actions: https://www.law.cornell.edu/uscode/text/15/1681p
• Kansas Fair Credit Reporting Act, K.S.A. Ch. 50, Art. 7 (§§ 50-701 to 50-725): https://law.justia.com/codes/kansas/chapter-50/article-7/
• K.S.A. § 50-706 — Compliance procedures (accuracy): https://law.justia.com/codes/kansas/chapter-50/article-7/section-50-706/
• K.S.A. § 50-710 — Procedure in case of disputed accuracy (reinvestigation): https://law.justia.com/codes/kansas/chapter-50/article-7/section-50-710/
• K.S.A. § 50-715 — Civil liability for willful noncompliance: https://law.justia.com/codes/kansas/chapter-50/article-7/section-50-715/
• K.S.A. § 50-716 — Civil liability for negligent noncompliance: https://law.justia.com/codes/kansas/chapter-50/article-7/section-50-716/
• K.S.A. § 50-717 — Jurisdiction of courts; limitation of actions: https://law.justia.com/codes/kansas/chapter-50/article-7/section-50-717/
• Kansas Consumer Protection Act, K.S.A. Ch. 50, Art. 6 (§ 50-623 et seq.): https://www.ksrevisor.gov/statutes/chapters/ch50/050_006_0023.html
• Kansas Office of the State Bank Commissioner / Consumer Credit Commissioner: https://osbckansas.gov