Consumer sues Bank One/First USA for Deliberate Violations of the Fair Credit Reporting Act
After numerous disputes with the credit bureaus, creditors and even complaints with the OCC, Randolph Foster learned that Bank One (First USA) intentionally reported extremely damaging incorrect data to the credit bureaus and accessed his credit files without his permission in violation of the Fair Credit Reporting Act (FCRA.)
(PRWEB) March 25, 2004 -- Mr. Foster had discharged his debts through a Ch. 7 bankruptcy in 1999, but several creditors failed to update their credit reporting to delete the discharged balances. They also did not report the accounts as discharged, as required by the FCRA. Fair Isaacs FICO credit scores are utilized in over 75% of all credit decisions and the scoring software includes those incorrect balances in the score calculations.
Bank One reported a fictitious balance for the discharged account, resulting in a dismal 623 FICO credit score. When they finally corrected the balance and status, Bank One re-aged the First USA account. In November 2003, they reported the incorrect Date of Last Activity of 03/2003."
The resulting FICO score was only 664, 5 years after the bankruptcy and despite Mr. Fosters excellent credit history and no new derogatory accounts. The FICO scores rated the account as a default in 3/03 instead of 1999, severely lowering the score.
Christine Baker publishes several credit related web sites including the blog about her own suit at http://www.creditsuit.org/ and she spent several years researching credit scoring and reporting. She reviewed Mr. Fosters many futile disputes and encouraged him to file suit.
In February 2004 Ms. Baker reviewed a Trans Union credit report with a 726 FICO score only 2 years after the bankruptcy filing. Recently she posted her affidavit in support of damages due to incorrect credit reporting after bankruptcy at http://www.creditcourt.org/bk-affidavit.htm for use by consumers.
Low FICO scores not only cause credit declines and higher interest rates, but also often result in higher auto and homeowners insurance premiums.
Mr. Foster filed his suit on November 12, 2003 against the credit bureaus Experian, Equifax and Trans Union and several former creditors in Pittsburgh, PA, federal court, case # 03-1729. Mr. Foster is representing himself and he recently settled with all defendants except Bank One.
To date, the Bank One legal team at Reed Smith LLP denies any wrong doing and Mr. Foster publishes the events and even court filings at his web blog at http://firstusa-credit-suit.us/ and at the CreditCourt forum.
Bank One submitted several motions to compel binding arbitration. Most contracts require disputes to be resolved through arbitration not only because arbitration is more complicated and more expensive than filing a law suit, but it is SECRET. While there is nothing wrong with mediation and trying to resolve disputes outside court, the binding arbitration clause effectively deprives consumers of their right to a public trial and a jury of their peers.
Bank One had acquired one of the accounts after it was closed and Judge Schwab apparently agreed that the arbitration clause was not enforceable as Mr. Foster had not used this account since Bank One owned it. He ordered on March 18, 2004 that the FCRA violations pertaining to the other account are to be arbitrated. Mr. Foster now has to attend to two simultaneous proceedings in court and in arbitration.
Most likely, Bank One already spent more on legal fees for their many motions and Mr. Fosters deposition than the $25,000 he demanded to settle the case. Money is apparently not the issue for Bank One. They are determined to defend their perceived right to report INCORRECT and INCOMPLETE data to the credit bureaus.
To date, Bank One has denied any wrong doing and reports discharged accounts as charge-offs and often with balances as a matter of policy.
Is Bank One retaliating against consumers who discharged their debts? Or are they part of the organized effort by the credit bureaus, Fair Isaac and Capital One Bank to artificially lower the credit scores of a large percentage of Americans through incomplete and incorrect credit reporting?
For additional information and documentation please contact Christine Baker, visit Mr. Fosters blog at http://firstusa-credit-suit.us/ and review the scans of the incorrect credit reporting and the OCC communication at http://forum.creditcourt.com/discus/messages/14/14.html.
About Christine Baker
Christine Baker maintains the web sites at http://bayhouse.com, http://creditforum.org/, http://creditcourt.org/ and http://creditfactors.com/. The blog about her federal suit against the CRAs, creditors and collectors as well as the FTC, FCC and the Federal Reserve Bank of Richmond for refusing to enforce consumer protection legislation is published at http://creditsuit.org/.
Mr. Foster may be contacted at bandoracer@comcast.net.
Attorneys for Bank One:
Perry A. Napolitano
John M. McIntyre
Jayme Butcher
Reed Smith LLP
Tel: (412) 288-3131
Fax: (412) 288-3063
|
