Hammer v. Equifax Information Services, LLC, No. 19-10199 (5th Cir. 2020)Annotate this Case
The Fifth Circuit affirmed the district court's dismissal of plaintiff's claims against Equifax and Experian under the Fair Credit Reporting Act after the consumer reporting agencies (CRAs) deleted a favorable credit item from his credit report and refused to restore it. The court held that plaintiff's 15 U.S.C. 1681e(b) claim fails where this provision does not hold a CRA strictly liable for all inaccuracies, Rather, the adequacy of a CRA's procedures is judged according to what a reasonably prudent person would do under the circumstances. In this case, the omission of a single credit item does not render a report inaccurate or misleading, and plaintiff has not alleged that the CRAs violated their stated disclosure policies or maintained an undisclosed policy of deleting certain favorable items.
The court also held that plaintiff's section 1681i(a) claim fails because plaintiff disputed the completeness of his credit report, not of an item in that report. Therefore, plaintiff did not trigger the CRA's section 1681i(a) obligation to investigate. Finally, plaintiff's section 1681i(a)(5)(B)(ii) claim fails because Equifax had no duty to notify plaintiff where Equifax had not removed the credit item, and amending the pleading would be futile.