NEW ORLEANS – A federal judge dismissed one claim in a lawsuit against a mortgage loan servicer but let stand claims that allege the company repeatedly reported incorrect information to credit reporting agencies.
U.S. District Judge Jane Triche Milazzo dismissed the claim alleging violations of the Louisiana Unfair Trade Practices Act (LUTPA). She allowed the claims involving the Fair Credit Reporting Act (FCRA) and Fair Debt Collection Practices Act (FDCPA) to continue, according to her April 13 order.
Kurt T. Bellow Jr. filed his complaint in U.S. District Court for the Eastern District of Louisiana against Cenlar FSB.
Bellow claims in his suit that he contacted Cenlar multiple times about information that was furnished to credit reporting agencies because the information that was reported was inaccurate.
The plaintiff claimed he provided proof of payment several times regarding the debt on his credit report that was inaccurate. Bellow's claim alleges that despite the proof, the defendant continued to report to the credit reporting agencies the inaccurate information.
While the plaintiff did not timely file his amended complaint, because he is a pro se plaintiff, the court decided against dismissing his claims on timeliness grounds. Judge Milazzo cautioned him to comply with all future deadlines.
The defendant argued in its motion to dismiss that the plaintiff failed to allege sufficient facts to support his claim of FCRA violations, but the court disagrees.
"The FCRA imposes liability on any person who willfully or negligently fails to comply with the Act’s requirements," Milazzo wrote. "The FCRA prohibits any person from furnishing information it knows to be inaccurate to a consumer reporting agency. It also prohibits any person from furnishing inaccurate information to a consumer reporting agency if it has been notified by the consumer that such information is inaccurate."
Milazzo wrote that regarding the FDCPA claim, the plaintiff also alleged sufficient facts to support the claim, and denied dismissal of that claim.
In the case of the LUTPA claim, when the defendant moved for dismissal of the claim, the plaintiff agreed to voluntarily dismiss it in his response to the motion to dismiss.
Bellow is seeking compensatory damages.
U.S. District Court for the Eastern District of Louisiana case number 2:18-cv-09401