Plaintiff Keisha James notified Experian that two items on her credit report were incorrect and were reported on her report as a result of identity theft. When Experian notified the companies that listed the debts of her dispute, those companies were only able to verify some of the information as being matching James's. Nonetheless, Experian refused to remove the disputed debts from her credit report. James sued Experian claiming that it failed to conduct a reasonable investigation into the disputed debts, as required by the Fair Credit Reporting Act. Experian responded by arguing that its investigation and verification complied with the Federal statute and asked that James's lawsuit be dismissed.
The court focused its decision on defining what would be deemed a"reasonable investigation" by Experian to satisfy its obligations under the law. Noting the absence of a clear definition, the court considered the totality of the circumstance. Observing that the companies reporting the debts to Experian were only able to verify some of the information, so that items like James's birth date, address and name were incorrect on those company reporting records, described by the court as "glaring discrepancies," coupled with Experian's failure to do anything more, compelled the court to deny dismissal of the complaint and allow James to proceed with her case.
Jones v. Experian Information Solutions, Inc.; Southern District of New York, Judge McMahon