Denan v. TransUnion LLC, No. 19-1519 (7th Cir. 2020)Annotate this Case
Plaintiffs each obtained loans from online payday lenders affiliated with Native American tribes. Each of their lenders reported delinquencies to Trans Union. One plaintiff contacted Trans Union, which investigated and determined that the report was accurate. Plaintiffs claim that Trans Union violated Fair Credit Reporting Act (FCRA), 15 U.S.C. 1681, provisions requiring that consumer reporting agencies “assure maximum possible accuracy of the information” contained in credit reports and re‐investigate disputed items. They did not claim the reports were factually inaccurate; they took out the reported loans and did not contest the debt amounts or the reported payment histories. They claimed the reports were “legally inaccurate” because they posted “legally invalid debts” that were void ab initio under New Jersey and Florida usury laws and that “reasonable procedures designed to ensure the maximum possible accuracy” would have shown that the loans were void. They claim that Trans Union’s screening procedures showed that the lenders lacked licenses to lend outside of tribal reservations and had histories of charging interest in excess of rates permitted in certain states and that Trans Union ignored government investigations and enforcement actions. The district court granted Trans Union judgment on the pleadings. The Seventh Circuit affirmed. FCRA does not compel consumer reporting agencies to determine the legal validity of disputed debts.