Cabrera v. Experian

Background

Lolita Cabrera filed this action without a lawyer against Experian, which the opinion identifies as a credit-reporting agency. She alleged that Experian failed to report a date of last activity, failed to report an account-closure date, and withheld information concerning account 224510 LESP FCU in a way that negatively affected her credit score. She alleged that these problems contributed to loss of her job, inability to obtain credit, loss of her home, unemployment, emotional distress, medical treatment, and denial of a personal loan. She requested removal of the account from all credit bureaus and $17,000 in damages.

The court construed the complaint as asserting claims under the Fair Credit Reporting Act, or FCRA, as well as state-law claims. The court had previously allowed Cabrera to proceed without prepaying filing fees. Because she was proceeding without a lawyer and without prepaying fees, the court reviewed the complaint under the federal screening rules requiring dismissal of claims that are frivolous, malicious, fail to state a claim, or seek money from an immune defendant.

FCRA Analysis

The court focused on FCRA provisions requiring a credit-reporting agency to use reasonable procedures to ensure the maximum possible accuracy of reported information and to conduct a reasonable reinvestigation after a consumer disputes information. For an accuracy-procedure claim, the court explained that a plaintiff must show that the agency negligently or willfully failed to use reasonable procedures, reported inaccurate information, caused an injury, and proximately caused that injury.

For both types of FCRA claims discussed, the threshold issue is whether the disputed credit information was actually inaccurate. The court held that Cabrera did not provide enough facts to meet that requirement. She did not identify the specific names, addresses, accounts, or other information on her credit report that was inaccurate, and she did not explain why the information was inaccurate. She also did not allege facts showing that Experian failed to conduct a reasonable reinvestigation. The court therefore concluded that the complaint failed to state an FCRA claim.

Leave to Amend and Disposition

The court granted Cabrera leave to file an amended complaint within 60 days. It directed her to provide a short and plain statement of the facts supporting each claim, the addresses of named defendants, the relevant people and their titles, what each defendant did or failed to do, the dates and locations of events, the connection between the conduct and her injuries, and the relief sought. The amended complaint would replace the original complaint rather than supplement it.

Judge Laura Taylor Swain ordered Cabrera to submit the amended complaint to the court’s Pro Se Intake Unit, label it “Amended Complaint,” and include docket number 1:21-CV-8313 (LTS). No summons would issue at that time. The order warned that, if Cabrera failed to amend within the permitted period without showing good cause, the court would dismiss her FCRA claims for failure to state a claim and would decline to consider her state-law claims under supplemental jurisdiction.