2:24-cv-00747
N.D. Ala.Dec 17, 2024Background
- Plaintiff Jadea Pritchett alleged that Westlake Portfolio Management inaccurately reported a delinquent car loan under her name to credit agencies, blocking her from obtaining a vehicle.
- She discovered the alleged error in February 2022 and disputed it with credit agencies in April 2022; the agencies notified Westlake, which purportedly failed to conduct a reasonable investigation.
- Experian concluded its investigation in May 2022, but the inaccurate information persisted as of December 2022; further disputes took place in 2023.
- Plaintiff filed suit in state court in May 2024, and the case was removed to federal court; she later amended her complaint.
- Plaintiff presented four FCRA claims, but voluntarily dismissed two (Counts III and IV), leaving only negligent and willful noncompliance under § 1681s-2(b) (Counts I and II).
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether Counts I & II are timely under FCRA statute of limitations | Pritchett argues her claim is timely because she filed within two years of discovering the alleged unreasonable investigation by Westlake. | Westlake contends the claims are untimely, asserting that the limitations period began with her initial discovery of inaccurate reporting, not the later investigation. | Court agreed with Plaintiff: limitations period runs from discovery of violation (i.e., the unreasonable investigation), making claims timely. |
| Whether voluntary dismissal of Counts III and IV is appropriate | Pritchett voluntarily agrees to dismissal. | Not opposed. | Court dismissed Counts III and IV without prejudice. |
Key Cases Cited
- Bell Atl. Corp. v. Twombly, 550 U.S. 544 (plausibility is required to state a claim)
- Ashcroft v. Iqbal, 556 U.S. 662 (complaint must contain facially plausible claims)
- Milgram v. Chase Bank USA, N.A., 72 F.4th 1212 (FCRA violation triggers statute of limitations upon plaintiff's discovery of unreasonable investigation)
- Hinkle v. Midland Credit Mgmt., Inc., 827 F.3d 1295 (furnisher must conduct reasonable investigation after notice of dispute)
- Felts v. Wells Fargo Bank, N.A., 893 F.3d 1305 (violation under FCRA occurs when unreasonable investigation is conducted)