Lawsuit: Seterus Illegally Checks Consumers' Credit Reports

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A proposed class action lawsuit has been filed against defendant Seterus, Inc., claiming the loan servicing company unlawfully accessed a consumer’s credit report on multiple occasions without her consent. The plaintiff, a Nevada resident, alleges that her debt with Seterus was discharged in bankruptcy in April 2015, and that she had no further relationship with the defendant. However, she says the company invaded her privacy by obtaining copies of her credit report after the discharge. Citing the Fair Credit Reporting Act, the suit claims a consumer’s credit report may only be accessed with his or her written consent, or for certain “permissible purposes” that include “the extension of credit to, or review or collection of an account of, the consumer, employment purposes, the underwriting of insurance, or in connection with a business transaction that is initiated by the consumer.” The plaintiff argues that Seterus violated the Fair Credit Reporting Act by accessing her report without her written consent or a “permissible purpose.”