Ditech Financial Sued Over Allegedly Inaccurate, Harmful Credit Reporting

New to ClassAction.org? Read our Newswire Disclaimer

A Virginia resident has filed a proposed class action lawsuit against Ditech Financial, LLC alleging that the loan servicer unlawfully reported inaccurate information on her credit reports and failed to properly investigate her dispute. From the complaint:

“Inaccurate servicing practices can throw homeowners into a spin cycle with far-reaching consequences, including errors on their credit reports that can haunt them for years.”

The plaintiff says she faithfully met her monthly loan payments as required under her Bank of America loan modification. The suit alleges, however, that Ditech incorrectly reported some of her payments as past due, and then in default. The plaintiff claims she sent multiple letters to the defendant and the credit reporting agencies informing them that she disputed the information and providing proof of her payments. Despite this, Ditech continued to report the supposedly inaccurate information, in violation of the Fair Credit Reporting Act and the Real Estate Settlement Procedures Act, the suit claims. The complaint argues that the defendant was required to cease reporting of disputed information for 60 days, but that it failed to do so and additionally failed to properly investigate the dispute. As a result, the plaintiff purportedly suffered harm to her credit score and emotional distress.