Equifax, Shellpoint Mortgage Servicing Facing Class Action Over Allegedly Inaccurate Credit Report Information

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Equifax Information Services and Shellpoint Mortgage Servicing have been hit with a proposed class action lawsuit centered on the companies’ apparent reporting of consumer debts despite the obligations falling outside of the time period in which they can be legally reported.

According to the 16-page lawsuit out of New Jersey district court, Equifax prepared and issued for the plaintiff at least one credit report that included inaccurate information with regard to a debt owed to Shellpoint Mortgage. The case argues the Shellpoint information included in the Equifax-produced credit report was inaccurate in that the time period in which the debt was legally allowed to be reported as a negative item had passed.

The lawsuit claims the plaintiff disputed the accuracy of the Shellpoint information in his Equifax credit report in early November 2019, informing the latter that the debt was too old to be included and therefore was either listed in error or was “illegally re-aged” in order to look current. After it was informed of the supposedly inaccurate information by the plaintiff, Equifax notified Shellpoint of the man’s dispute, the lawsuit says.

Shellpoint, upon receiving the plaintiff’s dispute, failed to conduct a reasonable investigation into the matter and continued to report false and inaccurate account information on the man’s credit report, the lawsuit alleges. Equifax, the case further claims, “did not evaluate or consider any of the information, claims or evidence” presented by the plaintiff, and allegedly made no attempt to “substantially reasonably verify” that the negatively reported information under dispute was inaccurate. The plaintiff claims the erroneous information on his credit report has hurt his creditworthiness and credit score.

The lawsuit alleges violations of the Fair Credit Reporting Act (FCRA), which, among other provisions, governs the responsibilities of credit reporters and furnishers of credit reports with regard to reasonably investigating disputed consumer information.