• Plaintiff Failed to State FCRA Claims Against Furnisher Because He Did Not Allege that His Disputes Were Sent to a CRA and His Remaining Claims Applied Only to CRAs
  • May 3, 2010 | Author: Martin Thornthwaite
  • Law Firm: Strasburger & Price, LLP - Frisco Office
  • Ashton v. Sallie Mae, Inc., 2010 U.S. Dist. LEXIS 22860 (N.D. Tex. March 10, 2010)

    Facts: Plaintiff filed suit against Defendant, Sallie Mae, Inc., alleging that the company failed to comply with the FCRA. Specifically, Plaintiff claimed that Defendant violated § 1681e, § 1681i, § 1681s-2(b), and § 1681o with respect to alleged inaccurate information reporting on his consumer reports regarding late payments on a student loan. Defendant filed a motion to dismiss under Rule 12(b)(6) of the Federal Rules of Civil Procedure for failure to state a claim. The Court granted the motion but allowed Plaintiff thirty (30) days to amend his complaint. 

    • Failure to State a Claim. Plaintiff’s § 1681e and § 1681i claims apply only to consumer reporting agencies (“CRAs”) and not furnishers, such as Defendant. Defendant merely furnishes information based solely on its own experiences with consumers and is not in the business of compiling and furnishing consumer reports to third parties.
    • Failure to State a Claim. Plaintiff’s § 1681s-2(b) claim failed because a furnisher does not have a duty to investigate a consumer’s dispute under the FCRA unless the consumer first sends notice to a CRA, and the furnisher receives information regarding the dispute from a CRA. Because Plaintiff failed to make any factual allegations that he sent notice of his disputes to any CRA, he also had no claim for damages under § 1681o.