CoreLogic Credco was accused of listing consumers as dead on credit reports despite them still being very much alive. The takeaway, especially considering the significant numbers involved, is clear: Data furnishers must make sure that their furnished information is accurate.
04/17/2024 3:00 P.M.
2 minute read
A recent case puts data accuracy in the spotlight, particularly when it comes to erroneous reporting of whether or not a consumer is still alive.
In Steinberg v. Corelogic, 2024 WL 1546921 Case No.: 3:22-cv-00498-H-SBC (S.D. Cal. April 9, 2024), a credit reporting agency (CRA) agreed to pay $5.695 million in a class-action lawsuit to resolve claims that it violated the federal Fair Credit Reporting Act by listing consumers as deceased on credit reports when they were actually alive.
It did this even after at least one of the three national CRAs (Equifax, Experian and TransUnion) provided information that did not include a notation that the consumer was deceased.
Background
The plaintiff, Marlene Steinberg, alleged that CoreLogic negligently and willfully violated the FCRA by failing to maintain reasonable procedures to assure the maximum possible accuracy in the preparation of the credit reports it resold regarding the settlement class members.
Specifically, she claimed CoreLogic resold inaccurate information from one or more of the nationwide CRAs where the consumer report contained a notation that the consumer was deceased and where either one or two of the CRAs also provided information that did not include a notation that the consumer was deceased.
She alleged that CoreLogic made no effort to determine whether the consumer was in fact deceased prior to publishing its consumer report.
Steinberg said that she suffered concrete financial and pecuniary harm arising from monetary losses relating to credit denials, loss of use of funds, loss of credit and loan opportunities, out-of-pocket expenses, and other related costs. She also alleged that she suffered concrete harm in the form of financial and dignitary harm arising from the injury to her credit rating and reputation.
In 2022, she filed a class-action complaint in the Superior Court of California, County of San Diego against CoreLogic. Just last week, on April 9, the court certified the settlement class.
Settlement
While CoreLogic didn’t admit any wrongdoing, it did agree to a $5.695 million settlement to resolve the lawsuit.
CoreLogic is also required to improve its reporting practices to more clearly state that the data it is reporting is precisely the data it received from the CRAs.
ACA’s Take:
The Fair Credit Reporting Act requires data furnishers to establish and implement reasonable written policies and procedures regarding the accuracy and integrity of consumer information provided to a consumer reporting agency.
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