Credit Reporting Disputes: 11th Cir Decision Brings Clarity and Uncertainty

tashatuvango / Adobestock

In a recent decision, the 11th Circuit drew a line in the sand regarding consumer disputes on credit reporting and the standard for investigating legal disputes.  The line set down is whether the legal dispute is “objectively and readily verifiable.” This line might be wavy at times and blurred at others, but it is a line that may provide some clarity for furnishers.

The Legal Dispute at Issue

Holden v. Holiday Inn Club Vacations Inc., 22-11014, 22-11734 (11th Cir. Apr 24, 2024) involves two cases with similar facts. Each involves a consumer (“Consumers”) entering into a timeshare agreement with Holiday Inn Club Vacations Inc. (“Creditor”). Each agreement included a default provision that stated, in the event of default, “the parties hereto shall be relieved from all obligations hereunder.”

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