FCRA Credit Report Dispute Complaint

COMPLAINT FOR VIOLATIONS OF THE FAIR CREDIT REPORTING ACT AND THE NEW JERSEY FAIR CREDIT REPORTING ACT

OPTION A — FEDERAL FORUM

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEW JERSEY

Civil Action No. [____________]

OPTION B — STATE FORUM

SUPERIOR COURT OF NEW JERSEY
LAW DIVISION, [________________________________] COUNTY

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 New Jersey Fair Credit Reporting Act, N.J.S.A. 56:11-28 et seq. ("NJFCRA").

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 N.J.S.A. 56:11-36.

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 NJFCRA and state-law claims under 28 U.S.C. § 1367.

5. Subject-Matter Jurisdiction (State Forum). Alternatively, the Superior Court of New Jersey has jurisdiction because 15 U.S.C. § 1681p confers concurrent jurisdiction on any court of competent jurisdiction, and the NJFCRA authorizes a private action in a court of competent jurisdiction.

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

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: R. 4:3-2.)

III. PARTIES

8. Plaintiff. Plaintiff is a natural person residing in [CITY], [________________________________] County, New Jersey, and is a "consumer" as defined by 15 U.S.C. § 1681a(c) and N.J.S.A. 56:11-30.

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 N.J.S.A. 56:11-30 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" within the meaning of 15 U.S.C. § 1681a(b) and N.J.S.A. 56:11-30.

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 / N.J.S.A. 56:11-32
    ☐ 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) and N.J.S.A. 56:11-36(a) to conduct a reasonable reinvestigation, free of charge, before the end of the 30-day period beginning on the date it received notice of the dispute. 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 N.J.S.A. 56:11-36(b), 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 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 New Jersey Fair Credit Reporting Act, N.J.S.A. 56:11-28 et seq. (CRA Defendant)

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

28. The NJFCRA requires a consumer reporting agency that maintains a file on a consumer to follow reasonable procedures to assure accuracy and, upon a consumer's direct dispute, to "reinvestigate free of charge and record the current status of the disputed information, or delete the item from the file ... before the end of the 30-day period beginning on the date on which the agency receives the notice of dispute." N.J.S.A. 56:11-36(a)(1).

29. The CRA Defendant violated N.J.S.A. 56:11-36 by failing to conduct a reasonable reinvestigation and by failing to delete or correct the inaccurate Disputed Item that it could not verify.

30. The CRA Defendant's conduct was willful within the meaning of N.J.S.A. 56:11-38 or, in the alternative, negligent within the meaning of N.J.S.A. 56:11-39. Under N.J.S.A. 56:11-38, a willful violation entitles Plaintiff to actual damages or damages of not less than $100 and not more than $1,000, plus such punitive damages as the court may allow, plus the costs of the action and reasonable attorneys' fees. Under N.J.S.A. 56:11-39, a negligent violation entitles Plaintiff to actual damages plus the costs of the action and reasonable attorneys' fees.

COUNT V — Violation of the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-1 et seq. (Both Defendants)

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

32. The New Jersey Consumer Fraud Act declares unlawful the use of any unconscionable commercial practice, deception, fraud, false pretense, false promise, or misrepresentation in connection with the sale or advertisement of any merchandise. N.J.S.A. 56:8-2.

33. To the extent Defendants' conduct described above constitutes an unlawful practice within the meaning of the CFA, Plaintiff suffered an ascertainable loss of money or property as a result, and is entitled under N.J.S.A. 56:8-19 to recover threefold the damages sustained, together with reasonable attorneys' fees, filing fees, and costs of suit.

VI. DAMAGES

34. 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.

35. 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.

36. Under the NJFCRA, Plaintiff is entitled to actual damages and, for willful violations, statutory damages of $100 to $1,000 and punitive damages, plus costs and reasonable attorneys' fees (N.J.S.A. 56:11-38); for negligent violations, actual damages plus costs and reasonable attorneys' fees (N.J.S.A. 56:11-39).

37. Under the New Jersey Consumer Fraud Act, Plaintiff is entitled to treble the ascertainable loss sustained plus reasonable attorneys' fees, filing fees, and costs (N.J.S.A. 56:8-19).

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 the applicable New Jersey limitations periods for the state-law claims.

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 and N.J.S.A. 56:11-38;
C. Punitive damages under 15 U.S.C. § 1681n and N.J.S.A. 56:11-38;
D. Treble damages under the New Jersey Consumer Fraud Act, N.J.S.A. 56:8-19;
E. An order directing deletion or correction of the inaccurate Disputed Item and such injunctive relief as the Court deems proper;
F. Reasonable attorney's fees and costs under 15 U.S.C. §§ 1681n and 1681o, N.J.S.A. 56:11-38 and 56:11-39, and N.J.S.A. 56:8-19;
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 R. 4:35-1 in state forum), Plaintiff demands a trial by jury on all issues so triable.

IX. SIGNATURE

Respectfully submitted,

Dated: [__/__/____]

________________________________
[ATTORNEY NAME], NJ Attorney ID 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 New Jersey 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], New Jersey.

________________________________
[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
• New Jersey Fair Credit Reporting Act, N.J.S.A. 56:11-28 et seq. (findings at 56:11-29): https://law.justia.com/codes/new-jersey/title-56/section-56-11-29/
• N.J.S.A. 56:11-36 — Dispute of information; reinvestigation: https://law.justia.com/codes/new-jersey/title-56/section-56-11-36/
• N.J.S.A. 56:11-38 — Willful noncompliance; liability: https://law.justia.com/codes/new-jersey/title-56/section-56-11-38/
• N.J.S.A. 56:11-39 — Negligent noncompliance; liability: https://law.justia.com/codes/new-jersey/title-56/section-56-11-39/
• New Jersey Consumer Fraud Act, N.J.S.A. 56:8-19 — Private right of action; treble damages and fees: https://law.justia.com/codes/new-jersey/title-56/section-56-8-19/