Heaton v. Wells Fargo Bank, N.A.

Background

Steven Heaton sued Wells Fargo Bank, N.A., and other defendants. Wells Fargo moved to dismiss the case. The court decided the motion without oral argument.

Fair Credit Reporting Act claims

The court addressed claims under the Fair Credit Reporting Act (FCRA), a federal law governing credit reporting. It held that the provisions cited for the completeness and accuracy of information provided to a credit-reporting agency did not create a private right of action, meaning an individual could not sue under those provisions. The court also said there was no private right of action under 15 U.S.C. § 1681s-2(a)(8)(E) and (F).

The court further held that Heaton had not plausibly pleaded a claim under 15 U.S.C. § 1681s-2(b). According to the complaint, he made no payments from January 16, 2019, through July 31, 2019. The court concluded that this meant the account was 150 days past due on June 15, 2019, and 180 days past due on July 15, 2019, so Heaton had not pleaded an actionable inaccuracy concerning Wells Fargo’s report of the account as 180 days past due. He also had not pleaded that Wells Fargo failed to conduct a reasonable investigation.

Fair Debt Collection Practices Act claim

The court held that Wells Fargo was not a debt collector under the Fair Debt Collection Practices Act (FDCPA). It dismissed this claim with prejudice, meaning the opinion barred refiling that claim in this case.

Truth in Lending Act claim

The court held that the Truth in Lending Act (TILA) claim was barred by TILA’s one-year statute of limitations, which is a deadline for filing a lawsuit. The final payment on the credit card was July 31, 2019, and Heaton filed his complaint on July 7, 2021. The court also found no basis for extending the deadline through equitable tolling. It noted that Heaton learned of the alleged violation when he obtained his credit report in December 2019, which was more than one year before he filed suit.

Injunctive relief and disposition

Heaton did not oppose Wells Fargo’s motion to strike his claim for injunctive relief. The court struck that claim and dismissed the complaint. The FDCPA claim was dismissed with prejudice. The dismissal was otherwise without prejudice, meaning the other claims were not finally barred from being refiled, although the court expected that the statute of limitations likely barred the TILA claim. Heaton had until January 6, 2022, to file an amended complaint.

Judge Laurel Beeler signed the order as a United States Magistrate Judge.