Experian wins dismissal with prejudice of all allegations that it inaccurately reported consumer bankruptcy

Client(s) Experian Information Solutions

Jones Day client Experian Information Solutions obtained dismissal with prejudice of all claims brought against it by a consumer alleging that Experian was not accurately reporting the facts of her Chapter 13 bankruptcy. The plaintiff, who as part of her Chapter 13 bankruptcy plan surrendered real property back to a creditor, alleged that Experian negligently and willfully violated the Fair Credit Reporting Act (15 U.S.C. 1681 et seq.) by reporting the account as "foreclosed" and instead of "discharged." Experian argued in its motion to dismiss that its reporting was accurate as a matter of law because her bankruptcy discharge did not change the fact that her creditor had indeed foreclosed on her property. Rejecting the plaintiff's claim that it was misleading to report the account as foreclosed, Chief Judge Ruben Castillo explained that, given the complicated nature of Chapter 13 bankruptcies, Experian is not required to interpret the legal minutiae of a Chapter 13 plan or decide how the bankruptcy court's general discharge order applies to individual accounts. Adopting Experian's reasoning that the plaintiff's theory would require Experian to make legal determinations that are not appropriate or required under the Fair Credit Reporting Act, the court dismissed all claims against Experian with prejudice.

Hupfauer v. Experian, No. 16-cv-00475 (N.D. Ill.)