in Newswire Published on October 6, 2022

Renaissance Economic Development Corp. Made Unauthorized Withdrawals from Borrower’s Account, Class Action Claims

Einhorn V. Renaissance Economic Development Corporation

Filed: October 3, 2022 ◆§ 1:22-cv-08436

A class action alleges Renaissance Economic Development Corporation withdrew money from a bank account without authorization, then reported the account as delinquent.

Defendant(s)

Renaissance Economic Development Corporation

Law(s)

Fair Credit Reporting Act New York General Business Law

State(s)

New York

A New York consumer alleges Renaissance Economic Development Corporation “repeatedly” withdrew money from his bank account without authorization after he received a loan from the lender, and then falsely reported his account as delinquent, harming his credit report.

The 12-page case claims that the loan servicer’s unauthorized withdrawals from the plaintiff’s account from 2020 through 2021 were done without “permission, consent or authority,” and in violation of New York’s General Business Law. The lawsuit also alleges Renaissance has run afoul of federal Fair Credit Reporting Act (FCRA) by failing to conduct a proper investigation into the plaintiff’s disputes over alleged inaccuracies on his credit report from 2021 through 2022 related to the apparent account withdrawals.

Per the complaint, the plaintiff, who borrowed money from Renaissance, notified the company about the improper withdrawals in October 2020. In November 2020, the suit says, the plaintiff received an email from Renaissance that stated, “Please accept our apology for this careless mistake,” yet the unauthorized withdrawals continued through 2021, according to the filing.

The case alleges Renaissance falsely disclosed to credit reporting agencies in March 2021 that the plaintiff's account was delinquent. As the lawsuit tells it, this status made the plaintiff “distressed and confused” given that he consistently made payments on time.

The case claims that the plaintiff filed “many brushed-aside disputes” to correct the allegedly inaccurate reports over several months, but "often Renaissance simply would not respond; other times Renaissance merely stated that it [would] review the issue."

In July 2021, Renaissance informed the plaintiff, “We have scheduled a call with CBA [or Credit Builders Alliance], the organization we work with for credit reporting, tomorrow morning to help update your account,” the suit explains. The following day, Renaissance told the plaintiff that his account would reflect corrections in three to five business days, but the plaintiff's credit report remained inaccurate until June 2022, according to the lawsuit.

The filing claims that Renaissance, in violation of the FCRA, failed to conduct a timely investigation of the plaintiff’s account and continued to report erroneous information to credit reporting agencies.

The filing contends that Renaissance's "systematic failures" caused the plaintiff "significant distress," "damaged his creditworthiness," and "lowered his credit score." The plaintiff asserts that he was denied credit from another financial institution in February 2022 due to Renaissance's incorrect reports.

The lawsuit looks to represent the following classes:

“ … all individuals i. who are consumers under the FCRA, ii. who received notice (within two years preceding the filing of this action) that a credit report contained negative reporting by Renaissance, iii. who disputed the negative reporting with a credit reporting agency because it was in fact inaccurate, iv. whose credit report remained uncorrected after being investigated by a credit reporting agency, whose report containing inaccurate information was published to others.”

“ … all individuals i. who reside in the State of New York, ii. who are customers or clients of Renaissance, iii. and who hold one or more bank accounts that Renaissance withdrew funds from without authorization within the past three years.”

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