New Orleans attorney sues credit bureaus over inaccuracies

New Orleans attorney David Jerrell alleges that an inaccuracy in his credit report has cost him more than $200,000 in an increased loan interest rate.

Despite numerous calls and letters to correct an inaccurate credit report entry, Jerrell claims Experian Information Solutions Inc. and Transunion Consumer Solutions Inc. failed to timely investigate or amend his credit his report.

He claims the credit bureau's actions violated the Fair Credit Reporting Act and has filed suit against Equifax Credit Information Services Inc. in New Orleans federal court.

Jerrell claims that in February 2009 the credit bureaus received a notice of a past due account stemming from services in July 2005. Jerrell claims he was never contacted about the alleged accrual of the 2005 debt. He learned of the past due account in November, when he applied for a residential loan but was disqualified from a certain interest rate due to the status of the past due account, he claims.

Jerrell states he contacted the collector and inquired about the accuracy of the debt. The collector could not verify the accuracy but did admit to having his account in collections.

According to the complaint, the bureaus failed to conduct a reasonable investigation within the prescribed time period.

Four months after he requested an investigation, Experian and Transunion removed the questionable account from his credit report, Jerrell claims.

Jerrell claims he has sustained severe emotional distress and frustration.

U.S. District Judge Mary Ann Vial Lemmon is assigned to the case.

Case No 2:10cv01048