11th Cir. Rules in Favor of Mortgage Servicer in FCRA Putative Class Action Related to Reasonable Investigations

Editor's Note: This article was originally published on the Maurice Wutscher blog and is republished here with permission.

In an unpublished ruling, the U.S. Court of Appeals for the Eleventh Circuit recently affirmed dismissal of a borrower’s putative class action suit filed against a mortgagee alleging violations of the Fair Credit Reporting Act for failing to conduct a reasonable investigation into disputed information reported to the credit reporting agencies.

In so ruling, the Court concluded that the borrower failed to demonstrate that a reasonable investigation would have uncovered an inaccuracy in certain information provided by the mortgagee to the credit reporting agencies, and the mortgagee had no duty to investigate a separate dispute because the borrower did not allege that it had received notice of the dispute from the CRAs triggering the requirements to investigate under § 1681s-2(b) of the FCRA, 15 U.S.C. § 1681, et seq.

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