Stone v. Trans Union LLC

Stone v. Trans Union LLC

Opinion

MEMORANDUM

SURRICK, J.

This matter is one of many nearly identical cases filed in this District against Trans Union and other credit reporting agencies that challenge how consumers'"pay status" is reported after their accounts have been closed. In this matter, Plaintiff paid off the full balance on his account in 2014 and it is closed. At the time he paid it off, Plaintiff was 30 days past due on the account. After the account was closed, Trans Union continued to report a "pay status" [*2]  of "30 Days Past Due." Plaintiff argues that this is misleading to creditors under the Fair Credit Reporting Act, 15 U.S.C. § 1681, et seq. ("FCRA") because the account appears to be currently past due. Several judges in the Eastern District of Pennsylvania have found that reporting a "past due" status on a closed and zeroed-out account that has been fully paid off is not misleading or inaccurate. Because we agree, we will grant Defendant's Motion for Judgment on the Pleadings and enter judgment in its favor.

I. BACKGROUND

This action arises from what Plaintiff alleges to be inaccurate credit reporting by Trans Union related to Plaintiff's auto loan with Ford Motor Credit Company ("FMCC"). (Compl. ¶ 9, ECF No. 1.) On September 3, 2014, Plaintiff paid off this loan and brought it to a $0.00 balance. (Id.) The debt was fully eliminated on September 3, 2014 and the account was closed. (Id.) At that time, Plaintiff was 30 days past due on his required payments and FMCC continued to report an account status of "30 Days Past Due Date." (Id.) Trans Union thereafter reported Plaintiff's account as closed and paid in full in September of 2014 and displayed a "pay status" as "30 Days Past Due Date." (Id. ¶ 11.) Believing that Trans Union was improperly [*3]  reporting his pay status as "past due," Plaintiff sent correspondence to Trans Union disputing the pay status on his account as inaccurate. (Id. ¶ 15.) In response, Trans Union forwarded this dispute to FMCC and FMCC advised Trans Union that the pay status was correct and to continue reporting the account as such. (Id.) Trans Union continues to report the pay status on Plaintiff's account as "past due."

In this Complaint, Plaintiff alleges violations of the Fair Credit Reporting Act under 15 U.S.C. § 1681i(a) (reasonable reinvestigation procedures) and § 1681e(b) (reasonable reporting procedures). (Id. at 34.) The Parties now bring Cross Motions for Judgment on the Pleadings. (ECF Nos. 25 & 26.)

Full case includes Shepard's, Headnotes, Legal Analytics from Lex Machina, and more.