Because of the increasing importance of credit reports these days, consumers must work to maintain good credit ratings. Unfortunately, they must also work to make sure the information handed out by the reporting agencies is accurate. This class action alleges claims against debt collector Select Portfolio Servicing, Inc. (SPS), for continuing to send out inaccurate information, and the three major credit reporting companies, for continuing to report it without conducting a proper investigation.
The class for this action is
Plaintiffs Glenn Williams and Kathy Freeman took out a home mortgage loan in 2005. The mortgage was eventually acquired by HSBC.
In December 2015, the couple filed for a Chapter 13 bankruptcy. The bankruptcy plan called for their home to be surrendered to HSBC. The plan was confirmed and the bankruptcy court entered the order of discharge on September 29, 2016. This order extinguished the couple’s liability for the mortgage.
However, sometime after the discharge, the complaint says, SPS acquired servicing rights to the mortgage.
In 2018, the couple ordered credit reports from each of the three major reporting agencies—Equifax Information Services, LLC, Experian Information Solutions, Inc., and TransUnion, LLC. Each report contained information showing that they still had the mortgage, with a balance of over $98,000 and a past due amount of over $22,000, showing that payments were 120 days or more past due; none of them mentioned the bankruptcy discharge.
The couple wrote to the three companies, explaining and asking them to investigate and correct the inaccurate information. All three replied, but kept the information on their reports, as did SPS. In addition, in June 2018, SPS sent the couple a mortgage statement asking for payment and claiming they were 926 days delinquent.
The complaint claims that SPS has violated both the Fair Debt Collection Practices Act (FDCPA) and the Fair Credit Reporting Act (FCRA) in falsely dunning them for debts they do not owe, for failing to conduct an adequate investigation into a dispute, and for reporting inaccurate information. It claims that the three credit reporting agencies have violated the FCRA for publishing inaccurate information and for not conducting adequate investigations into the dispute.