Shannon v. EQUIFAX INFORMATION SERVICES, LLC
2011 U.S. Dist. LEXIS 7644
| E.D. Pa. | 2011Background
- Shannon moved from Paoli to West Chester in 2008 and asked Verizon to transfer service; Equifax is a consumer reporting agency reporting on Shannon’s credit; Shannon disputed Verizon’s charges after paying $260.10 that was not fully due; Equifax prepared an AI/ACDV dispute form to Verizon but left the entry unchanged; Shannon alleges FCRA violations (1681i(a), 1681e(b)) and UTPCPL, plus common-law negligence and invasion of privacy/false light; the court grants summary judgment for Equifax on most claims but denies negligent FCRA claims for trial.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether accuracy defeats FCRA claims | Shannon argues the Verizon tradeline was misleading despite factual accuracy | Equifax contends the entry was accurate or that accuracy defenses apply | Genuine issue as to whether the entry was misleading, not technically accurate |
| Whether Equifax conducted a reasonable reinvestigation | Shannon contends reinvestigation would uncover the unpaid vs paid status | Equifax claims procedures were reasonable under 1681i(a) | Issue for trial; reasonable reinvestigation question for jury |
| Whether willful noncompliance is shown | Shannon seeks willful violation by reckless disregard | No evidence of knowing, intentional, or reckless disregard | Willful FCRA claim dismiss; negligence claim may proceed |
| Whether UTPCPL claims are cognizable against a credit bureau | UTPCPL applies to unfair/deceptive acts | PA UTPCPL not applicable to credit reporting agencies absent purchase of goods/services | UTPCPL claim granted summary judgment (precluded) |
Key Cases Cited
- Cahlin v. Gen. Motors Acceptance Corp., 936 F.2d 1151 (11th Cir.1991) (accuracy defense under 1681e(b))
- Philbin v. Trans Union Corp., 101 F.3d 957 (3d Cir.1996) (elements of negligence under 1681e(b); willful standard)
- Cortez v. Trans Union, LLC, 617 F.3d 688 (3d Cir.2010) (maximum accuracy vs technical accuracy; factors for 1681i(a) duty to investigate)
- Safeco Ins. Co. of Am. v. Burr, 551 U.S. 47 (2007) (reckless disregard as willful violation)
- Cushman v. Trans Union Corp., 115 F.3d 220 (3d Cir.1997) (duty to go beyond original source; factors for reasonableness)
- Henson v. CSC Credit Servs., 29 F.3d 287 (7th Cir.1994) (duty to go beyond original source considerations)
- Koropoulos v. Credit Bureau, Inc., 734 F.2d 37 (D.C.Cir.1984) (maximum accuracy concept (cited favorably))
- Smith v. HireRight Solutions, Inc., 711 F.Supp.2d 426 (E.D.Pa.2010) (adoption of Koropoulos/maximum accuracy approach)
- Krajewski v. Am. Honda Fin. Corp., 557 F.Supp.2d 596 (E.D.Pa.2008) (discussion of accuracy/1681e(b) issue)