Fifth Circuit Affirms Dismissal FCRA Claims Based on Failure to Include a Single Credit Item on Cred

In Hammer v. Equifax, the Fifth Circuit affirmed the district court’s dismissal of FCRA claims against Experian and Equifax in a September 9, 2020 published decision.

Accepting the allegations of the twice amended complaint as true, Plaintiff obtained a Capital One credit card in 2010 and made timely payments every month thereafter.  Equifax, Experian, and TransUnion reported the Capital One account until 2017.  After discovering that the Capital One account was no longer on his credit report, Plaintiff requested all three CRAs to restore it.  TransUnion was the only CRA to comply with his request.  Hammer continued to file disputes with Experian and Equifax based on their refusal to include the Capital One account in his credit report.  For unexplained reasons, Equifax added the Capital One account to his credit report but then removed it a week later.  Plaintiff alleged the failure to include this favorable credit item led to a lower credit score which then caused him to be denied credit. 

On these facts, plaintiff alleged three separate violations of FCRA: (1) failure to follow reasonable procedures to assure maximum possible accuracy of his credit report against Equifax; (2) failure to investigate against both Equifax and Experian, (3) a failure to notify claim against Equifax based on its alleged failure to notify him when it reinserted the Capital One account in his credit report. FULL ARTICLE