853 F. Supp. 2d 772
E.D. Ark.2012Background
- Ilodianya sues Capital One for FCRA violations, defamation of credit, and intentional infliction of emotional distress.
- Ilodianya seeks declaratory relief to compel correction of remaining false credit report information.
- Capital One moves to dismiss; motion granted in part and denied in part.
- Court addresses private right of action under 1681s-2 and distinguishes 1681s-2(a) vs (b).
- Court analyzes preemption: state-law claims preempted by 1681t(b)(1)(F) and 1681h(e).
- Court analyzes whether declaratory relief is available or if injunctive relief is required under FCRA.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether private right of action exists under 1681s-2(a) or (b) | Ilodianya argues private suits exist for 1681s-2(b). | Capital One contends no private action for 1681s-2(b) or (a) as applicable. | 1681s-2(a) claims dismissed; 1681s-2(b) private action survived. |
| Whether state-law defamation/IIED claims are preempted | Ilodianya asserts defamation/IIED claims independent of FCRA remedies. | Capital One asserts preemption under 1681t(b)(1)(F) and 1681h(e). | Defamation and IIED claims preempted and dismissed with prejudice. |
| Whether declaratory relief is available or tantamount to injunctive relief | Ilodianya seeks a declaratory order to correct information; argues not an injunction. | Capital One contends relief is injunctive, not declaratory, under FCRA. | Injunctive relief not available to private FCRA plaintiffs; declaratory relief dismissed as injunction. |
Key Cases Cited
- Purcell v. Bank of America, 659 F.3d 622 (7th Cir. 2011) (preemption framework for 1681h(e) and 1681t(b)(1)(F))
- Macpherson v. JPMorgan Chase Bank, N.A., 665 F.3d 45 (2d Cir. 2011) (affirmative remedy under 1681s-2; preemption context)
- Washington v. CSC Credit Services Inc., 199 F.3d 263 (5th Cir. 2000) (injunctions under FCRA private plaintiffs as a matter of debate)
- Beaudry v. TeleCheck Services, Inc., 579 F.3d 702 (6th Cir. 2009) (injunctionability and private rights under FCRA discussion)
- Simms-Parris v. Countrywide Financial Corp., 652 F.3d 355 (3d Cir. 2011) (private right of action under 1681s-2(b))
- Chiang v. Verizon New England Inc., 595 F.3d 26 (1st Cir. 2010) (FCRA private rights and preemption considerations)
- Saunders v. Branch Banking & Trust Co. of Virginia, 526 F.3d 142 (4th Cir. 2008) (FCRA private rights implications)
- Nelson v. Chase Manhattan Mortgage Corp., 282 F.3d 1057 (9th Cir. 2002) (FCRA private remedies and preemption context)
- Huertas v. Galaxy Asset Management, 641 F.3d 28 (3d Cir. 2011) (private rights under 1681s-2(b) considerations)