Sprague v. Salisbury Bank & Trust Co., No. 19-3241 (2d Cir. 2020)Annotate this Case
The Second Circuit affirmed the district court's dismissal of plaintiffs' amended complaint against Salisbury Bank for failure to state a claim. Plaintiffs alleged that the bank violated the Fair Credit Reporting Act and related state causes of action by failing to correct information contained in one of the plaintiff's credit reports after being notified that the information was not correct.
The court agreed with the district court that plaintiffs' allegation that they notified Salisbury directly of their dispute, standing alone, is insufficient to state a claim under 15 U.S.C. 1681s–2(b). In this case, plaintiffs have not alleged facts indicating that Salisbury received notice from a consumer reporting agency regarding the inaccuracies in the credit report. Furthermore, the district court did not err in denying leave to amend and dismissing with prejudice where nothing in plaintiffs' proposed second amended complaint corrected the deficiency.