Jefferson Capital Systems Sued Over Allegedly Inaccurate Reporting of Discharged Debt

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In a proposed class action out of California federal court, a consumer claims that Jefferson Capital Systems, LLC continued to report monthly payment obligations on an Emblem MasterCard debt that had been discharged in bankruptcy.

In December 2014, three months after initially filing for bankruptcy, the plaintiff had her credit card debt discharged, the suit says. According to the case, however, the defendant still indicated a monthly obligation of $17 on the discharged account in a December 2016 credit report. The complaint argues that Jefferson Capital should have known it was reporting “erroneous and negative information” since the company had been notified by the bankruptcy court of the account’s discharged status. From the complaint:

“The bankruptcy court mailed Defendant a clear and unambiguous order that definitively discharged the Debt. Defendant, therefore, had explicit and authoritative evidence that the Debt was discharged, meaning monthly payments were no longer due.”