FCRA Credit Report Dispute Complaint

COMPLAINT FOR VIOLATIONS OF THE FAIR CREDIT REPORTING ACT AND THE MASSACHUSETTS FAIR CREDIT REPORTING STATUTE

OPTION A — FEDERAL FORUM

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MASSACHUSETTS

Civil Action No. [____________]

OPTION B — STATE FORUM

COMMONWEALTH OF MASSACHUSETTS
[________________________________] COUNTY, ss.
SUPERIOR COURT DEPARTMENT OF THE TRIAL COURT

Civil Action 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"), the Massachusetts Fair Credit Reporting statute, Mass. Gen. Laws ch. 93 §§ 50-62A ("Massachusetts FCRA"), and the Massachusetts Consumer Protection Act, Mass. Gen. Laws ch. 93A ("Chapter 93A").

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 Mass. Gen. Laws ch. 93 §§ 54 and 58.

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) and Mass. Gen. Laws ch. 93 § 54A.

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 Massachusetts claims under 28 U.S.C. § 1367.

5. Subject-Matter Jurisdiction (State Forum). Alternatively, the Massachusetts Superior Court has jurisdiction because 15 U.S.C. § 1681p confers concurrent jurisdiction on any court of competent jurisdiction, and the Superior Court has original jurisdiction over civil actions under Mass. Gen. Laws ch. 212 § 4 and Chapter 93A claims under ch. 93A § 9.

6. Personal Jurisdiction. Each Defendant regularly conducts business in Massachusetts and committed the acts and omissions complained of in Massachusetts, and therefore is subject to jurisdiction under the Massachusetts long-arm statute, Mass. Gen. Laws ch. 223A § 3.

7. Venue. Venue is proper because a substantial part of the events or omissions giving rise to the claims occurred in this District/County, Plaintiff resides here, and/or Defendants transact business here. (Federal forum: 28 U.S.C. § 1391(b); state forum: Mass. Gen. Laws ch. 223 § 1.)

III. PARTIES

8. Plaintiff. Plaintiff is a natural person residing in [CITY], [________________________________] County, Massachusetts, and is a "consumer" as defined by 15 U.S.C. § 1681a(c) and Mass. Gen. Laws ch. 93 § 50.

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 Mass. Gen. Laws ch. 93 § 50 because, for monetary fees, 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 who furnishes information to any consumer reporting agency" within the meaning of Mass. Gen. Laws ch. 93 §§ 54A and 63.

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 / Mass. Gen. Laws ch. 93 § 52
    ☐ 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. Upon receiving Plaintiff's written dispute, the CRA Defendant was required by 15 U.S.C. § 1681i(a)(1) and Mass. Gen. Laws ch. 93 § 58(a) to reinvestigate and record the current status of the disputed information within a reasonable period not to exceed 30 business days, free of charge, unless it had reasonable grounds to believe the dispute was frivolous or irrelevant, and to notify the furnisher of the dispute within 5 business days. The CRA Defendant failed to conduct a 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) and Mass. Gen. Laws ch. 93 § 58(a), 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, and by Mass. Gen. Laws ch. 93 § 54A to follow reasonable procedures to ensure that the information it reported was accurate. 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.

17. Chapter 93A demand letter. On or about [__/__/____] — at least 30 days before filing this Complaint — Plaintiff served on each Defendant a written demand for relief pursuant to Mass. Gen. Laws ch. 93A § 9(3), identifying Plaintiff, reasonably describing the unfair or deceptive acts complained of, and the injury suffered. Defendants ☐ failed to respond, ☐ refused to grant relief, ☐ made a settlement offer that was not reasonable in relation to the injury, within 30 days.

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

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

19. 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."

20. 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.

21. 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

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

23. Upon receiving Plaintiff's dispute, the CRA Defendant was required by 15 U.S.C. § 1681i to conduct a reasonable reinvestigation, to forward all relevant information to the Furnisher Defendant, and to delete or modify information that could not be verified.

24. 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

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

26. 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.

27. 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 Massachusetts Fair Credit Reporting Statute, Mass. Gen. Laws ch. 93 §§ 50-62A (Both Defendants)

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

29. The Massachusetts FCRA requires a consumer reporting agency to maintain reasonable procedures for accuracy (Mass. Gen. Laws ch. 93 § 54) and to reinvestigate disputed information within a reasonable time not to exceed 30 business days and to notify the furnisher (Mass. Gen. Laws ch. 93 § 58). The CRA Defendant violated these duties as alleged above.

30. The Massachusetts FCRA further provides, at Mass. Gen. Laws ch. 93 § 54A, that "[e]very person who furnishes information to a consumer reporting agency shall follow reasonable procedures to ensure that the information reported to a consumer reporting agency is accurate." The Furnisher Defendant violated § 54A by furnishing and continuing to furnish the inaccurate Disputed Item.

31. Pursuant to Mass. Gen. Laws ch. 93 § 63, any consumer reporting agency, person who furnishes information to any consumer reporting agency, or user of information that willfully fails to comply with §§ 50 to 62A is liable to the consumer for actual damages, such punitive damages as the court may allow, and the costs of the action together with reasonable attorney's fees. In the alternative, under Mass. Gen. Laws ch. 93 § 64, a negligent failure to comply gives rise to liability for actual damages plus costs and reasonable attorney's fees, and these remedies are not exclusive.

COUNT V — Violation of the Massachusetts Consumer Protection Act, Mass. Gen. Laws ch. 93A §§ 2 and 9 (Both Defendants)

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

33. At all relevant times Defendants were engaged in trade or commerce within the meaning of Mass. Gen. Laws ch. 93A § 1, and Plaintiff is a person entitled to bring an action under ch. 93A § 9.

34. Defendants' conduct — reporting, and failing to reasonably reinvestigate and correct, the inaccurate Disputed Item after Plaintiff's dispute — constitutes unfair or deceptive acts or practices declared unlawful by Mass. Gen. Laws ch. 93A § 2.

35. Plaintiff complied with the demand requirement of Mass. Gen. Laws ch. 93A § 9(3) by serving a written 30-day demand for relief as alleged in Paragraph 17.

36. Pursuant to Mass. Gen. Laws ch. 93A § 9, Plaintiff is entitled to recover actual damages or $25, whichever is greater; up to double or treble damages for a willful or knowing violation of § 2 or for a bad-faith refusal to grant relief; and reasonable attorney's fees and costs.

VI. DAMAGES

37. 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 per violation, punitive damages, and reasonable attorney's fees and costs.

38. 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.

39. Under the Massachusetts FCRA, Plaintiff is entitled to actual damages and, for willful violations, such punitive damages as the court may allow, plus costs and reasonable attorney's fees (Mass. Gen. Laws ch. 93 §§ 63, 64). Under Chapter 93A, Plaintiff is entitled to actual damages or $25 (whichever is greater), up to double or treble damages, and reasonable attorney's fees and costs (Mass. Gen. Laws ch. 93A § 9).

40. 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 the applicable Massachusetts limitations periods, including Mass. Gen. Laws ch. 260 § 5A for the Chapter 93A claim.

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 per violation under 15 U.S.C. § 1681n;
C. Punitive damages under 15 U.S.C. § 1681n and Mass. Gen. Laws ch. 93 § 63;
D. Double or treble damages and mandatory reasonable attorney's fees and costs under Mass. Gen. Laws ch. 93A § 9;
E. An order directing deletion or correction of the inaccurate Disputed Item;
F. Reasonable attorney's fees and costs under 15 U.S.C. §§ 1681n and 1681o and Mass. Gen. Laws ch. 93 §§ 63, 64;
G. Pre- and post-judgment interest as allowed by law; and
H. 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 Mass. R. Civ. P. 38 in state forum), Plaintiff demands a trial by jury on all issues so triable.

IX. SIGNATURE

Respectfully submitted,

Dated: [__/__/____]

________________________________
[ATTORNEY NAME], BBO No. [____________]
(U.S. District Court for the District of Massachusetts Bar admission, if filing in federal court)
[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 Commonwealth of Massachusetts 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], Massachusetts.

________________________________
[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
• 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
• Mass. Gen. Laws ch. 93 § 54A — Furnisher duty: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section54A
• Mass. Gen. Laws ch. 93 § 58 — Consumer dispute; reinvestigation: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section58
• Mass. Gen. Laws ch. 93 § 63 — Willful noncompliance liability: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section63
• Mass. Gen. Laws ch. 93 § 64 — Negligent noncompliance liability: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93/Section64
• Mass. Gen. Laws ch. 93A § 2 — Unfair or deceptive acts unlawful: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93A/Section2
• Mass. Gen. Laws ch. 93A § 9 — Consumer action; 30-day demand: https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXV/Chapter93A/Section9
• U.S. District Court for the District of Massachusetts Local Rules: https://www.mad.uscourts.gov/general/localrules.htm