FCRA Credit Report Dispute Complaint - Nevada

COMPLAINT FOR VIOLATIONS OF THE FAIR CREDIT REPORTING ACT AND THE NEVADA CONSUMER REPORTING STATUTE (NRS CHAPTER 598C)

OPTION A — FEDERAL FORUM

IN THE UNITED STATES DISTRICT COURT
FOR THE DISTRICT OF NEVADA

Case No. [____________]

OPTION B — STATE FORUM

IN THE [________] JUDICIAL DISTRICT COURT OF THE STATE OF NEVADA
IN AND FOR THE COUNTY OF [________________________________]

Case No. [____________]
Dept. 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 Nevada's consumer reporting statute, NRS Chapter 598C ("Chapter 598C").

2. The CRA Defendant prepared and disseminated consumer 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 NRS 598C.110 and 598C.160.

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

5. Subject-Matter Jurisdiction (State Forum). Alternatively, the District Court has jurisdiction because 15 U.S.C. § 1681p confers concurrent jurisdiction on any court of competent jurisdiction, NRS Chapter 598C authorizes a private action by an aggrieved consumer, and NRS 41.600 authorizes a private action by a victim of consumer fraud.

6. Personal Jurisdiction. Each Defendant regularly conducts business in Nevada and committed the acts and omissions complained of in Nevada, 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, Nevada, and is a "consumer" as defined by 15 U.S.C. § 1681a(c) and NRS 598C.040.

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 a "reporting agency" within the meaning of NRS 598C.100 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 NRS 598C.090.

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 / NRS 598C.150
    ☐ 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 NRS 598C.160 to notify the institutional sources of the information within 5 business days, to complete a reasonable reinvestigation within each provision's applicable period, and to correct or delete information that is incorrect or cannot be verified. The federal period is governed by § 1681i(a)(1)(A)-(C). 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), 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 NRS Chapter 598C, Nevada Consumer Reporting (CRA Defendant)

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

28. NRS 598C.110 imposes duties on the CRA Defendant as a reporting agency, and NRS 598C.160 required the CRA Defendant, upon Plaintiff's dispute of the accuracy of information in its files, to notify the institutional sources of the information within 5 business days and, as soon as reasonably possible but no later than 30 days, to complete a reinvestigation of the accuracy of the information, and to correct its files and notify Plaintiff if the information was incorrect or could not be verified.

29. The CRA Defendant failed to comply with NRS 598C.110 and 598C.160 by failing to conduct a reasonable reinvestigation and by continuing to report the inaccurate Disputed Item.

30. The CRA Defendant's failure was willful within the meaning of NRS 598C.190 or, in the alternative, negligent within the meaning of NRS 598C.200. Under NRS 598C.190, a reporting agency that willfully fails to comply is liable to the consumer for the consumer's actual damages, "[s]uch amount of punitive damages as the court may allow," and the costs of the action plus reasonable attorney's fees. Under NRS 598C.200, the CRA Defendant is liable for the consumer's actual damages and the costs of the action plus reasonable attorney's fees for negligent noncompliance.

COUNT V — Consumer Fraud / Nevada Deceptive Trade Practices Act, NRS 598.0915 via NRS 41.600 (Both Defendants) [OPTIONAL]

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

32. The conduct alleged constitutes a "deceptive trade practice" within the meaning of NRS 598.0915 et seq., including a knowing misrepresentation of the characteristics or status of goods or services and a false representation in a transaction.

33. Pursuant to NRS 41.600, Plaintiff is a "victim of consumer fraud" and is entitled to recover any damages sustained, appropriate equitable relief, and the costs of the action plus reasonable attorney's fees.

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, 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 NRS Chapter 598C, Plaintiff is entitled to actual damages, punitive damages as the court may allow for willful noncompliance (NRS 598C.190), and costs plus reasonable attorney's fees (NRS 598C.190; 598C.200). If pleaded, the NRS 41.600 count entitles Plaintiff to damages, equitable relief, costs, and reasonable attorney's fees.

37. The federal claims are timely under 15 U.S.C. § 1681p (the earlier of two years after discovery or five years after the violation). Calendar the limitations periods for the Chapter 598C and NRS 41.600 claims independently and confirm with counsel.

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 NRS 598C.190;
D. 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, NRS 598C.190 and 598C.200, and (if pleaded) NRS 41.600;
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 Rule 38 of the Nevada Rules of Civil Procedure in state forum), Plaintiff demands a trial by jury on all issues so triable.

IX. SIGNATURE

Respectfully submitted,

Dated: [__/__/____]

________________________________
[ATTORNEY NAME], Nevada State 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 Nevada 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], Nevada.

________________________________
[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
• NRS Chapter 598C — Consumer Reporting: https://www.leg.state.nv.us/nrs/nrs-598c.html
• NRS 598C.160 — Duties of reporting agency when consumer disputes accuracy: https://www.leg.state.nv.us/nrs/nrs-598c.html#NRS598CSec160
• NRS 598C.190 — Remedies for willful failure (actual + punitive + costs/fees): https://law.justia.com/codes/nevada/chapter-598c/statute-598c-190/
• NRS 598C.200 — Remedies for negligent failure: https://www.leg.state.nv.us/nrs/nrs-598c.html#NRS598CSec200
• NRS 598.0915 — Deceptive trade practice defined: https://www.leg.state.nv.us/nrs/nrs-598.html
• NRS 41.600 — Private action by victim of consumer fraud: https://www.leg.state.nv.us/nrs/nrs-041.html#NRS041Sec600
• Nevada Attorney General, Bureau of Consumer Protection: https://ag.nv.gov/Complaints/File_Complaint/
• CFPB (credit-reporting complaints): https://www.consumerfinance.gov/complaint/