in Newswire Published on March 31, 2017

Three FDCPA, FCRA Lawsuits Filed Over 'Inaccurate' Credit Reporting

Last Updated on May 8, 2018

Gadomski v. Patelco Credit Union

Filed: March 31, 2017 ◆§ 2:17-at-00353

A California woman is the plaintiff in three separate lawsuits against respective defendants Patelco Credit Union (PCU), I.C. System, Inc., and C B Merchant Services.

Defendant(s)

I.C. System Patelco Credit Union C B Merchant Services

Law(s)

State(s)

California

A California woman is the plaintiff in three separate lawsuits against respective defendants Patelco Credit Union (PCU), I.C. System, Inc., and C B Merchant Services (which does business as Credit Bureau of San Joaquin County) that claim the companies failed to properly investigate and correct disputes concerning inaccurate information on consumers’ credit reports. The plaintiff claims she filed for bankruptcy in 2013 but the credit agency and debt collectors continued to report her alleged debts as “charged off” instead of “discharged in bankruptcy,” indicating that she still owed money to her creditors. According to the suits, the defendants have a “deliberate policy” of “negligently or intentionally systematically reporting negative and inaccurate information on consumers’ credit reports,” even after consumers directly inform them that the information is false. The companies’ alleged conduct can “adversely affect a Class Member’s ability to obtain credit or employment and have the inherent coercive effect of inducing Class Members to make payment on the debt,” the complaint says.

The lawsuit against PCU claims the credit union neglects to inform credit reporting agencies that a consumer’s debts have been discharged in order to induce the individual into continuing payments on the debt. In order to improve their credit scores, consumers “often feel it necessary to pay off the debt despite its discharge in order to remove the inaccurate information from their credit reports,” according to the suit. This unlawful conduct allegedly tricks consumers into paying the defendants money they are not required to pay.

As a result of the defendants’ “vexatious and oppressive” practices, the plaintiff, in addition to proposed class members, “incurred pain and suffering, was impeded in seeking necessary products and services from vendors, suffered humiliation, embarrassment, anxiety, loss of sleep, emotional distress, and defamation of character,” along with suffering damage to her credit standing, the suits allege.

Patelco Credit Union Complaint

I.C. System Complaint

C B Merchant Services Complaint