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Brim v. Midland Credit Management

on Tuesday, 08 January 2013. Posted in Recent Litigation

a $723,000 verdict

In a Fair Credit Reporting Act (FCRA) case, a federal jury returned a verdict for CLA's client Mr. Brim and against debt buyer Midland Credit Management in the amount of $723,000.  As a prevailing party under the FCRA, Mr. Brim is now entitled to have his attorney's fees and costs added to the verdict.

At trial, the evidence showed that Mr. Brim had paid his Dell account off within 30 days of purchasing his computer via a check by phone.  However, Dell never properly posted the payment.  Mr. Brim disputed with Dell for several years and then Dell sold the account to Midland.  Midland immediately began reporting the account on Mr. Brim's credit report.  Brim disputed to the consumer reporting agencies (CRAs) on numerous occasions, and a total of 9 notices of electronic dispute were sent to Midland from the CRAs.  Midland claimed not to have received all of them but every one of the electronic dispute notices (ACDVs) received by Midland was handled by its "Batch Interface System".  

Midland never had a single person actually investigate any of the ACDVs and it never contacted Dell.  Midland's position was that it had no responsibility to do anything because its computer "investigated" the dispute when it reviewed the information in Midland's system and compared it with the informatio supplied by the CRAs.  Midland's other position was that even if they had contacted Dell, the result would have been the same.  

The jury disagreed, found that Midland willfully failed to investigate and awarded $100,000 in actual damages and $623,180 in punitive damages.

Domonoske/Rivera v. Bank of America

on Tuesday, 08 January 2013. Posted in Recent Litigation

a $10 million settlement

Harrisonburg, Virginia -- The checks are in the mail for members of a class action lawsuit filed against Bank of America by Consumer Litigation Associates.

The massive settlement Bank of America will pay is the result of a lawsuit filed by CLA alleging that the bank failed to properly notify some consumers that it had used credit scores in processing mortgages or home equity loans, as required by the federal Fair Credit Reporting Act.

The most significant result of the case is that Bank of America has paid such a significant amount of money to settle the case, one of the largest class action settlements under the Fair Credit Reporting Act.

“The important thing is that the statute requires banks to give notice of the credit score as soon as reasonably practicable when they use or obtain a credit score to determine the consumer’s eligibility for a mortgage, and our client never received that notice.” stresses CLA Attorney Erausquin. “If consumers are to be educated about the status of their credit score and to receive the other information that Congress requires, companies should send this notice out right away after obtaining or using the credit score."

The settlement ( negotiated by Consumer Litigation Associates was the largest class action settlement under these credit score notice provisions, and one of the largest ever under the Fair Credit Reporting Act.

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Consumer Litigation Associates, a professional corporation
Our firm has successfully litigated hundreds of cases for consumers in federal courts across the nation.

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(757) 930-3660

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