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Bank of America Inaccurate Info on Credit Reports California Class Action

With more and more parties insisting on obtaining credit reports, not just for prospective borrowers but also for prospective tenants and employees, it’s clear that credit reports must be accurate. The complaint for this class action alleges, however, that Bank of America, NA has reported “erroneous negative and derogatory information” on customers to credit reporting agencies. It brings suit under the California Consumer Credit Reporting Agencies Act (CCCRAA).

The class for this action is all persons with addresses within California who have or had accounts with Bank of America where said accounts have a zero balance, where Bank of America reported a monthly payment obligation, from July 3, 2017 to July 3, 2019.

In previous years, plaintiff Gloria Rodriguez incurred a debt to Bank of America. On July 31, 2017, she filed for Chapter 7 bankruptcy. 

The bankruptcy court issued an order on November 28, 2017 that discharged the debt. The court mailed a copy of this order to Bank of America. 

In spite of this, Bank of America continued to report that Rodriguez had a scheduled monthly payment of $449 towards this debt. 

Rodriguez only discovered this when she obtained a copy of her Equifax report. On May 8, 2019, she sent Equifax a dispute letter, challenging the item. Unfortunately, the complaint says, her credit report “remains inaccurate because [Bank of America] refuses to correct the scheduled payment listing.”

The complaint points out that this is damaging to Rodriguez because when lenders consider extending credit, they take into account how big a monthly payment they already need to make. A $449 monthly payment is significant for most would-be borrowers, and the complaint says it damages her creditworthiness. 

The complaint points to the Metro 2 system, which was meant to offer a uniform kind of software and an industry-standard layout for conveying information to consumer credit reporting agencies. “Furnishers’ utilization of the Metro 2 reporting standard correctly is crucial…” the complaint says.

The California Civil Code requires that parties like Bank of America, who regularly furnishes consumer credit reporting agencies with information about its own transactions or experiences with consumers, and who “determines that information on a specific transaction or experience so provided to a consumer credit reporting agency is not complete or accurate, shall promptly notify the consumer credit reporting agency of that determination and provide … any corrections to that information, or any additional information, that is necessary to make the information provided by the person … complete and accurate.”

The sole count in this complaint is violation of the CCCRAA.

Article Type: Lawsuit
Topic: Consumer

Most Recent Case Event

Bank of America Inaccurate Info on Credit Reports California Complaint

July 3, 2019

With more and more parties insisting on obtaining credit reports, not just for prospective borrowers but also for prospective tenants and employees, it’s clear that credit reports must be accurate. The complaint for this class action alleges, however, that Bank of America, NA has reported “erroneous negative and derogatory information” on customers to credit reporting agencies. It brings suit under the California Consumer Credit Reporting Agencies Act (CCCRAA).

b_of_a_erroneous_info_on_credit_report_compl.pdf

Case Event History

Bank of America Inaccurate Info on Credit Reports California Complaint

July 3, 2019

With more and more parties insisting on obtaining credit reports, not just for prospective borrowers but also for prospective tenants and employees, it’s clear that credit reports must be accurate. The complaint for this class action alleges, however, that Bank of America, NA has reported “erroneous negative and derogatory information” on customers to credit reporting agencies. It brings suit under the California Consumer Credit Reporting Agencies Act (CCCRAA).

b_of_a_erroneous_info_on_credit_report_compl.pdf
Tags: Credit Reports, Failure to properly investigate/correct errors on credit report, Not Reporting to Credit Agencies Debt Discharge in Bankruptcy