FCRA Credit Report Dispute Complaint - Maine

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

OPTION A — FEDERAL FORUM

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF MAINE

Case No. [____________]

OPTION B — STATE FORUM

STATE OF MAINE
[________________________________] COUNTY, ss.
SUPERIOR COURT

Docket 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 Maine Fair Credit Reporting Act, 10 M.R.S. § 1306 et seq. (the "Maine 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 the Maine FCRA, 10 M.R.S. §§ 1309 and 1310-H.

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, through 10 M.R.S. § 1309, the Maine FCRA.

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 Maine FCRA and Maine UTPA claims under 28 U.S.C. § 1367.

5. Subject-Matter Jurisdiction (State Forum). Alternatively, the Maine Superior Court has jurisdiction because 15 U.S.C. § 1681p confers concurrent jurisdiction on any court of competent jurisdiction, and 10 M.R.S. § 1310-E provides that an action to enforce liability under the Maine FCRA "may be brought in any court of competent jurisdiction."

6. Personal Jurisdiction. Each Defendant regularly conducts business in Maine and committed the acts and omissions complained of in Maine, 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, Maine, and is a "consumer" as defined by 15 U.S.C. § 1681a(c) and the Maine FCRA, 10 M.R.S. § 1308 (incorporating the federal definitions).

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 is a person subject to the Maine FCRA, 10 M.R.S. § 1308, 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" subject to the Maine FCRA, 10 M.R.S. §§ 1308, 1309.

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 / the Maine FCRA
    ☐ Medical debt reported in violation of 10 M.R.S. § 1310-H(4)
    ☐ 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 dispute, the CRA Defendant was required by 15 U.S.C. § 1681i(a)(1) (incorporated by 10 M.R.S. § 1309) and by 10 M.R.S. § 1310-H(2) — which provides that, notwithstanding federal law, a consumer reporting agency "shall reinvestigate and record the current status of the information within 21 calendar days of notification of the dispute by the consumer" — to conduct a reasonable reinvestigation. The CRA Defendant failed to do so 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 within 21 days]. 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) (incorporated by 10 M.R.S. § 1309) 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 conduct a reasonable reinvestigation, to forward all relevant information to the Furnisher Defendant, and to delete or modify information that could not be verified.

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 Maine Fair Credit Reporting Act, 10 M.R.S. § 1306 et seq. (Both Defendants)

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

28. The Maine FCRA, 10 M.R.S. § 1309(1), requires that "[a] person subject to this chapter shall comply with the federal Fair Credit Reporting Act." By violating 15 U.S.C. §§ 1681e(b), 1681i, and 1681s-2(b) as alleged above, Defendants failed to comply with the federal FCRA and thereby violated the Maine FCRA.

29. The Maine FCRA further requires, at 10 M.R.S. § 1310-H(2), that "if a consumer disputes any item of information contained in the consumer's file on the grounds that it is inaccurate and the dispute is directly conveyed to the consumer reporting agency by the consumer, the consumer reporting agency shall reinvestigate and record the current status of the information within 21 calendar days of notification of the dispute by the consumer, unless it has reasonable grounds to believe that the dispute by the consumer is frivolous." The CRA Defendant violated § 1310-H(2) by failing to conduct a reasonable reinvestigation and record the current status of the Disputed Item within 21 calendar days.

30. Defendants' violations of the Maine FCRA were willful and knowing within the meaning of 10 M.R.S. § 1310-C or, in the alternative, negligent within the meaning of 10 M.R.S. § 1310-D.

31. Pursuant to 10 M.R.S. § 1310-C, for a willful and knowing violation Plaintiff is entitled to recover actual damages, an amount equal to three times the actual damages (treble damages), and the costs of the action together with reasonable attorney's fees. Pursuant to 10 M.R.S. § 1310-D, for a negligent violation Plaintiff is entitled to recover actual damages, additional damages of not less than $100 per violation, and the costs of the action together with reasonable attorney's fees.

COUNT V — Violation of the Maine Unfair Trade Practices Act, 5 M.R.S. §§ 207, 213 (Both Defendants) — Pleaded in the Alternative

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

33. To the extent the underlying transaction qualifies under 5 M.R.S. § 213(1), Defendants' acts and practices in reporting and continuing to report the inaccurate Disputed Item constitute "unfair or deceptive acts or practices in the conduct of any trade or commerce" prohibited by 5 M.R.S. § 207.

34. On [__/__/____], Plaintiff served Defendants with a written demand for relief under 5 M.R.S. § 213(1-A) at least thirty (30) days before commencing this action. A true and correct copy is attached as Exhibit [____]. Defendants failed to make a reasonable written tender of settlement.

35. Plaintiff is entitled to actual damages, restitution, equitable relief including a permanent injunction directing correction or deletion of the Disputed Item, and reasonable attorney's fees and costs under 5 M.R.S. § 213(2).

VI. DAMAGES

36. 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.

37. 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.

38. Under the Maine FCRA, Plaintiff is entitled to actual damages plus, for willful and knowing violations, treble damages (10 M.R.S. § 1310-C), and for negligent violations, additional damages of not less than $100 per violation (10 M.R.S. § 1310-D), plus costs and reasonable attorney's fees in each case.

39. 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 10 M.R.S. § 1310-E, which requires an action under the Maine FCRA to be brought within two years from the date on which the liability arises (subject to the misrepresentation discovery rule therein). The MUTPA count is subject to the six-year limitation of 14 M.R.S. § 752.

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; treble damages under 10 M.R.S. § 1310-C; and additional damages of not less than $100 per violation under 10 M.R.S. § 1310-D;
D. Injunctive or equitable relief directing deletion or correction of the inaccurate Disputed Item, including under 5 M.R.S. § 213;
E. Reasonable attorney's fees and costs under 15 U.S.C. §§ 1681n and 1681o, 10 M.R.S. §§ 1310-C and 1310-D, and 5 M.R.S. § 213(2);
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 Maine Rule of Civil Procedure 38 in state forum), Plaintiff demands a trial by jury on all issues so triable.

IX. SIGNATURE

Respectfully submitted,

Dated: [__/__/____]

________________________________
[ATTORNEY NAME], Maine Bar No. [____________]
[LAW FIRM NAME]
[ADDRESS]
[CITY, ME 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 Maine 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], Maine.

________________________________
[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
• Maine Fair Credit Reporting Act, Title 10, Chapter 209-B (§ 1306 et seq.): https://www.mainelegislature.org/legis/statutes/10/title10ch209-Bsec0.html
• 10 M.R.S. § 1309 — Incorporation by reference of federal law: https://www.mainelegislature.org/legis/statutes/10/title10sec1309.html
• 10 M.R.S. § 1310-C — Civil liability for willful noncompliance: https://www.mainelegislature.org/legis/statutes/10/title10sec1310-C.html
• 10 M.R.S. § 1310-D — Civil liability for negligent noncompliance: https://www.mainelegislature.org/legis/statutes/10/title10sec1310-D.html
• 10 M.R.S. § 1310-E — Jurisdiction of courts; limitation of actions: https://www.mainelegislature.org/legis/statutes/10/title10sec1310-E.html
• 10 M.R.S. § 1310-H — Additional state-specific provisions (21-day reinvestigation; medical debt): https://www.mainelegislature.org/legis/statutes/10/title10sec1310-H.html
• 5 M.R.S. § 207 — Maine Unfair Trade Practices Act (unlawful acts): https://legislature.maine.gov/statutes/5/title5sec207.html
• 5 M.R.S. § 213 — MUTPA private remedies; 30-day demand: https://legislature.maine.gov/statutes/5/title5sec213.html
• Maine Bureau of Consumer Credit Protection: https://www.maine.gov/pfr/consumercredit/