Williams v. Pentagon Federal Credit Union
3:23-cv-00386
S.D. Tex.Jul 3, 2025Background
- Plaintiffs Joe Williams and Ida Farris obtained an auto loan from Suntide FCU in 2017, which was later acquired by Pentagon Federal Credit Union (PenFed).
- The only loan the plaintiffs had with PenFed resulted in repossession after nonpayment.
- In January 2023, plaintiffs learned from Equifax that the loan account appeared multiple times on their credit reports.
- Plaintiffs filed disputes with Equifax in August and October 2023 regarding the duplicate reporting; Equifax forwarded these to PenFed.
- Plaintiffs alleged PenFed failed to reasonably investigate and continued to report inaccurate/multiple account entries.
- Plaintiffs sued PenFed under the Fair Credit Reporting Act (FCRA), § 1681s-2(b), for negligent and willful violations; PenFed moved for summary judgment.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Willful violation of FCRA §1681s-2(b) | PenFed acted knowingly/intentionally | No evidence of willfulness; not discussed in response | For PenFed; no evidence or argument to support willfulness; claim waived |
| Negligent violation of FCRA §1681s-2(b) | Failed to reasonably investigate/resolve duplicate credit entries | PenFed did not furnish multiple accounts; Equifax error | For Williams/Farris; factual dispute exists, jury could find negligence |
| Damages: Emotional distress | Suffered emotional distress | No evidence beyond self-testimony, no physical harm or treatment | For PenFed; insufficient proof of emotional distress damages |
| Damages: Lost credit opportunities/creditworthiness | Duplicate reporting caused lost opportunities and dropped scores | Duplicate reporting not cause; denials occurred pre-dispute or for unrelated reasons | For PenFed except RBFCU denial & small credit score drop after dispute—genuine fact issue there |
Key Cases Cited
- Stevenson v. TRW Inc., 987 F.2d 288 (5th Cir. 1993) (defining willful noncompliance under FCRA as knowing, intentional conduct in conscious disregard for rights)
- Cousin v. TransUnion Corp., 246 F.3d 359 (5th Cir. 2001) (no liability for FCRA violations before notice/dispute; causation requirement for damages)
- Sapia v. Regency Motors of Metairie, Inc., 276 F.3d 747 (5th Cir. 2002) (explaining "conscious disregard" for willful FCRA violation)