Rosenberg v. LoanDepot Inc.

OPINION AND ORDER Shabse Rosenberg (“Plaintiff”) brings this action against LoanDepot, Inc. (“Defendant”) for violating the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. §1681 et seq. (See Doc. 1, “Compl.”).¹ Plaintiff brings two claims for relief against Defendant: (i) willful violation of the FCRA; and (ii) negligent violation of the FCRA. (Id.). Defendant moves under Federal Rules of Civil Procedure 12(b)(1) and 12(b)(6) to dismiss the claims asserted against it. Defendant served its motion papers on May 6, 2022 (Doc. 24; Doc. 25, “Def. Br.”; Doc. 26), Plaintiff served her opposition brief on May 27, 2022 (Doc. 28, “Opp. Br.”), and the motion was briefed fully with service of Defendant’s reply memorandum of law in further support of its motion and the filing of all motion papers on June 10, 2022 (Doc. 27, “Reply”). For the reasons set forth below, Defendant’s motion to dismiss is GRANTED. BACKGROUND Plaintiff opened a credit account with Defendant on March 18, 2019. (Doc. 28-1, “Credit Report” at 53). Defendant reported information relating to Plaintiff’s account with Equifax that was ultimately used to prepare the Credit Report. (Id.; Compl.

11-12). Plaintiff alleges that the information provided by Defendant to Equifax was inaccurate because the account status notation indicated that it was over 120 days past due even though the account had been transferred to a different lender. (Id. 14). The account, however, was identified as “closed,” the balance reported as “$0,” no monthly payment amount was stated, and the comment field showed that the “[c]onsumer disputes this account information.” (Credit Report at 53-54). Plaintiff alleges further that credit scoring algorithms take the account status field into account when generating credit scores. (Compl. 15). Plaintiff disputed the allegedly inaccurate payment status notation with Equifax on February 4, 2021. (See generally Doc 26-1). Plaintiff alleges that Equifax informed Defendant of the dispute but that Defendant failed to investigate and correct the allegedly inaccurate information. (Compl.