Dist. Ct. did not err in dismissing plaintiffs' action alleging that defendant-consumer reporting agency violated sections 1681e(b) and 1681i(a) of Fair Credit Reporting Act by listing as debts delinquent loans from Native American tribes, where: (1) plaintiffs had disputed legality of said loans with defendant; and (2) plaintiffs had not sought legal action against said lenders prior to defendant posting of said debts on plaintiffs' credit reports. Dist. Ct. could properly find that dismissal was warranted, because: (1) plaintiff had failed to allege that their credit reports listing said debts were factually inaccurate; and (2) neither section 1681e(b) nor 1681i(a) require defendant to determine legal validity of any disputed debt prior to posting said debt on plaintiffs' credit reports. Result would be different if court had found said debts to be legally invalid, and defendant reported said debts on plaintiffs' credit report anyway.
Federal 7th Circuit Court
Civil Court
Fair Credit Reporting Act