Ngambo v. Bank of America

Background

Jules Ngambo sued Bank of America, N.A., under the Fair Credit Reporting Act, after he found a debt attributed to him on credit reports. Ngambo alleged that he had no agreement with the bank for credit, loans, or services. He said he wrote to the bank disputing the debt, waited 30 days, and received no response. He alleged that the bank failed to investigate and failed to tell the consumer-reporting entities that the debt was disputed.

Ngambo was proceeding without a lawyer. The bank moved to dismiss the complaint and for judgment on the pleadings under Federal Rules of Civil Procedure 12(b) and 12(c). The bank also alternatively sought summary judgment, but the court resolved the motion under the pleading standards for dismissal and judgment on the pleadings.

Court’s analysis

The court addressed three types of Fair Credit Reporting Act claims: allegedly reporting inaccurate information, failing to correct inaccurate information, and failing to investigate a dispute.

For the inaccurate-reporting claim, the court relied on Second Circuit precedent holding that a violation of 15 U.S.C. § 1681s-2(a) does not create a private cause of action. The court therefore dismissed Ngambo’s claim that the bank reported an erroneous and inaccurate debt.

For claims under 15 U.S.C. § 1681s-2(b), the court explained that a plaintiff must allege that he notified a consumer-reporting agency about an inaccuracy, that the agency then notified the creditor or furnisher of the information, and that the creditor or furnisher failed to investigate or correct the information. The court found that Ngambo alleged only that he contacted Bank of America directly. It held that direct notice to the furnisher did not satisfy the statute. The court also found his allegations of inaccurate reporting conclusory and lacking specificity.

Ruling and effect

The court granted Bank of America’s motion to dismiss. It dismissed the inaccurate-reporting claim and dismissed the remaining claims without prejudice. The Clerk of Court was directed to terminate the motion and mail Ngambo a copy of the opinion and order.

Ngambo was given until July 22, 2022, to file an amended complaint asserting only claims dismissed without prejudice and consistent with the opinion and order. The court stated that failure to comply on time may result in the remaining claims being dismissed with prejudice.