CRA_DR_Blue_V2.0.jpg
Intelicrunch_Banner_Header.jpg

Second Circuit Upholds Dismissal of FCRA Claim Due to Customer’s Failure to Allege Dispute to CRA


A three-judge panel in the Second Circuit recently affirmed a Connecticut district court decision dismissing a Fair Credit Reporting Act suit against Salisbury Bank and Trust Company because the customer had not notified a credit reporting agency of the alleged error in his credit report.

In Sprague v. Salisbury Bank and Trust Company, No. 19-3241, 2020 U.S. App. LEXIS 25157 (2d Cir. Aug. 10, 2020), Appellants borrowed money from Salisbury to purchase a home and, after several years, Salisbury initiated foreclosure proceedings. The parties stipulated to a $40,000 deficiency judgment. When Appellant later noticed his credit report improperly listed the mortgage as still open, he notified Salisbury, who acknowledged the erroneous report and informed Appellant that a correction had been made. Appellants subsequently learned that Salisbury did not correct the erroneous information until several months later.

Appellants filed a complaint alleging Salisbury violated FCRA by “negligently and willfully fail[ing] to perform a reasonable reinvestigation and correction of inaccurate information,” and by “engag[ing] in behavior prohibited by FCRA by failing to correct errors in the information that it provided to credit reporting agencies…after [Appellants] notified [Salisbury Bank] of the error.”

The district court dismissed the complaint reasoning Appellants failed to state a claim under 15 U.S.C. § 1681s-2(b) because they (1) did not plead that they notified a CRA of the disputed accuracy of Salisbury’s reports and (2) did not allege that a CRA notified Salisbury of the dispute. Further, the court reasoned Appellants failed to state a claim under 15 U.S.C. § 1681s-2(a) because there is no private right of action under this subsection. FULL ARTICLE

© 2020  InteliCrunch.com

InteliCrunch is a free service provided by a collective of people who monitor the background screening industry and how events affect not only the people in it, but even more importantly, the real human impact the industry has on today's society.*All third party logos and / or images used on this website are the sole property and / or registered trademarks of their respective companies or copyright holders. Use of these logos, images or likenesses does not, in any way, imply the endorsement of InteliCrunch by any of the businesses, brands or individuals represented, their parent companies, officers, employees, partners, or affiliates. Any such usage is for informational / news purposes only.  Any / all articles, announcements, releases or third-party-authored content is / are linked back to the original "source"  and author credit given  Furthermore, InteliCrunch is not responsible for, and does not warrant the safety of any third-party links or sites to which any viewer may be directed from InteliCrunch.  InteliCrunch has made reasonable efforts to ensure that any news or informational links on the site are from "known and reputable"  sources / websites.