Experian, TD Bank Dodge Bankruptcy FCRA Suit For Now

A California federal judge on Thursday nixed allegations that Experian and TD Bank improperly reported outstanding account balances after a debtor declared bankruptcy, saying the consumer failed to allege that the reports contained actual inaccuracies under the Fair Credit Reporting Act, but could have another shot at amending the suit. U.S. District Judge Beth Freeman said she refused to make the “logical leap” that the companies violated the FCRA by reporting historically accurate debts after plaintiff Arthur Harris filed for Chapter 13 bankruptcy protection, dismissing just one case filed by a bankruptcy attorney who launched more than 100 suits against financial institutions under the FCRA. “The court simply is not persuaded that the reporting of a delinquency or past due balance after plan confirmation is per se inaccurate under the FCRA,” Judge Freeman said. Since April 2016, attorney Elliot Gale has filed numerous suits against multiple financial industry players accusing the creditors of failing to conduct a reasonable investigation into allegedly misleading credit reports that misreported outstanding debt after the individuals filed for Chapter 13 or Chapter 7 bankruptcy. Gale has practiced as an associate attorney at the Santa Clara-based Sagaria Law, which specializes in bankruptcy. FULL ARTICLE

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