Bank Defended in an Action Involving the FCRA
Argument in federal court ends with mediation
Haynsworth Sinkler Boyd defended a national bank in a federal action involving the Fair Credit Reporting Act (FCRA).
The plaintiffs alleged the bank had willfully violated the FCRA by failing to remove delinquent-loan information from their credit reports.
They had purchased a mobile home with the bank's loan proceeds and, six months after the mobile home was delivered, attempted to reject the mobile home as a “nonconforming good” under the South Carolina Commercial Code.
We counterclaimed for collection of the amount due and owing on the loan.
We filed for summary judgment based on the statutory requirements of FCRA— arguing that, even if the credit reporting was inaccurate, the plaintiffs had failed to state a private cause of action under FCRA and could not establish any damages that were recoverable under the act.
The court ordered mediation, where the case was settled by the parties.