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Credit Repair Organizations Act

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District Court (Ohio) Says Consumer’s Hiring CRO to Dispute Consumer Report was not a “Direct” Dispute under the FCRA; Says Technical Inaccuracy Did Not Cause Any Damages

by Scott J. Hyman |

In Turner v. Experian Information Solutions, Inc., 2017 WL 2832738, at *6 (N.D.Ohio, 2017), Judge Zouhary found no recoverable FCRA damages. Turner concedes her damages are limited to emotional distress (Doc. 21 at ¶ 62). . . Turner testified that a mortgage broker advised her in early 2015—several months before the July 2015 dispute letter that forms the basis for this lawsuit—that… Read More

District Court (Cal.) Says Debt Collector’s Statement that Payment Could Help Credit Did Not Trigger CROA; Debt Collector’s Statement that It Could Report “Settled” Account as “Paid-in-Full” Was Not False

by Scott J. Hyman |

In Kielty v. Midland Credit Management, Inc., 2015 WL 400584 (S.D.Cal. 2015), Judge Bashant held that a debt collector stating that payment could help repair the debtor’s credit did not trigger the Credit Repair Organizations Act. Unlike FreeScore, Midland does not offer any service for the purpose of providing assistance or advice to improve consumers' credit record in return for… Read More

District Court (Fla.) Finds Debt Buyer’s “Fresh Start” Program for Debtors Potentially Violated FDCPA Because Participation in Program Required Waiver of FDPCA Rights; Program Potentially Qualified Debt Buyer as Credit Repair Organization

by Scott J. Hyman |

In Kennedy v. CompuCredit Holdings Corp., --- F.Supp.2d ----, 2014 WL 1284495 (M.D.Fla. 2014), Judge Adams found that an FDCPA Plaintiff stated a claim based on the theory that a Debt Buyer’s “Fresh Start” program violated the FDCPA since participation in the Program was conditioned on waiving certain rights available under the FDPCA, such as debt validation. Plaintiff Kennedy failed… Read More

SCOTUS Reverses Ninth Circuit on Arbitrability of Claims under Credit Repair Organizations Act

by Scott J. Hyman |

In Greenwood v. CompuCredit, Corp., here, Justice Scalia today authored an opinion overruling the Court of Appeals for the Ninth Circuits’ refusal to enforce an arbitration clause related to a claim under the Credit Repair Organizations Act.  The syllabus of the Court explained:    Although respondents’ credit card agreement required their claims tobe resolved by binding arbitration, they filed a… Read More

District Court (Pa.) Finds Auto Lease Transaction Triggered Credit Repair Organization Act

by Scott J. Hyman |

In Perry v. Drivehere.com, Inc., 2011 WL 3204818 (E.D.Pa. 2011), Judge Joyner found that a plaintiff stated a claim in an auto finance transaction under the Credit Repair Organizations Act due to advertisements and a close connection to a CRO. According to the allegations of the Amended Complaint,  Plaintiff, Brittani Perry, entered into a Lease agreement with Peoples Commerce, Inc. to lease… Read More