A recent Law 360 piece by TroutmanPepper attorneys highlights the growing skepticism of past-due pay status cases. According to partners, Dave Gettings, Ethan Ostroff; of counsel, Andrew Buxbaum; and associate, Brooke Conkle
Over the past 18 months, courts have seen an influx of cases under the Fair Credit Reporting Act alleging that a tradeline reported as closed or transferred and, simultaneously, past due is erroneous. In fact, one district alone has seen over 50 of these cases filed in recent months.
Various plaintiffs lawyers have argued that data furnishers and consumer reporting agencies, or CRAs, are incorrectly reporting their financial accounts with a past-due pay status, which they claim hurts their credit. Data furnishers and CRAs argue, however, that their reporting is accurate, not misleading, and consistent with industry guidance.
Courts initially struggled with these claims, especially when deciding a motion to dismiss, but they are now trending to concluding these claims lack merit.
Eric J. Ellman is Senior Vice President for Public Policy and Legal Affairs at the Consumer Data Industry Association (CDIA) in Washington, DC. He also served for eight months as Interim President and CEO of the Association. More