Because consumer credit reports are increasingly important these days, it is also important that company reports about outstanding loans be accurate. The complaint for this class action alleges Wells Fargo, NA continued to report a debt that had been paid off, despite the consumer’s attempts to get the debt removed from her credit report.
The Fair Credit Reporting Act (FCRA) is the federal law that regulates credit reporting, but states have also passed their own laws on the subject. This complaint alleges violations of the FCRA, the California Consumer Credit Reporting Agencies Act (CCCRAA), and Metro 2 reporting system’s Guidelines.
Plaintiff Nora Moore, who lives in California, paid off a number of debts she owed to various creditors. Among them was her home mortgage, owed at the time to Wells Fargo. She paid this off sometime in February 2012.
However, in April 2019, she noticed that her TransUnion and Equifax credit reports still showed that she had a scheduled monthly payment for the mortgage of $897 to Wells Fargo. Since the account had been paid in full and closed, the amount should have been $0 or marked as “NA.”
When she discovered this inaccuracy, she immediately disputed the debt with TransUnion and Equifax. However, Wells Fargo has still not corrected its erroneous reporting.
This is important because, as the complaint says, “[w]hen making decisions on whether or not to extend credit, lenders consider what monthly obligations potential borrowers already have. If borrowers have too many monthly payment obligations, lenders will not lend to them…” The erroneous $897 scheduled payment provides a false picture of Moore’s creditworthiness and credit obligations.
The complaint says that Wells Fargo “through its own records had explicit and authoritative evidence that [Moore’s] account was paid in full and closed, meaning scheduled payments were no longer due. Further, [Moore] disputed [Wells Fargo’s] reporting. Thus, [Wells Fargo] knew or should have known that the information it provided to Equifax and Trans Union was inaccurate.”
A class and a subclass have been defined for this action.
- The class is all persons in the US (a) who have or had an account with Wells Fargo (b) where the account has a $0 balance, but (c) where Wells Fargo reported a monthly payment obligation, between November 25, 2017 and November 25, 2019.
- The subclass is all persons with addresses in California (a) who have or had an account with Wells Fargo (b) where the account has a $0 balance, but (c) where Wells Fargo reported a monthly payment obligation, between November 25, 2017 and November 25, 2019.
Topic: Consumer
Most Recent Case Event
Wells Fargo Incorrect Reporting of Paid-Off Debt Complaint
November 25, 2019
Because consumer credit reports are increasingly important these days, it is also important that company reports about outstanding loans be accurate. The complaint for this class action alleges Wells Fargo, NA continued to report a debt that had been paid off, despite the consumer’s attempts to get the debt removed from her credit report.
wells_fargo_mortgage_fcra_complaint.pdfCase Event History
Wells Fargo Incorrect Reporting of Paid-Off Debt Complaint
November 25, 2019
Because consumer credit reports are increasingly important these days, it is also important that company reports about outstanding loans be accurate. The complaint for this class action alleges Wells Fargo, NA continued to report a debt that had been paid off, despite the consumer’s attempts to get the debt removed from her credit report.
wells_fargo_mortgage_fcra_complaint.pdf