Experian and Shellpoint Face Class-Action Lawsuit Over Alleged FCRA and FDCPA Violations

Zeev Lelinger, a Florida consumer, has found himself at the center of a legal storm involving two corporate giants, Experian Information Solutions, LLC and NewRez LLC, doing business as Shellpoint Mortgage Servicing. Lelinger, representing not only himself but also other similarly affected consumers, has lodged a class-action lawsuit against the two companies. The case, filed on August 17, 2023, in the 17th Judicial Circuit Court of Broward County, Florida, alleges violations of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).

The FCRA is a federal law designed to promote the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. It provides consumers with the right to dispute and correct inaccurate information in their credit reports. The FDCPA, on the other hand, is a federal law that aims to eliminate abusive debt collection practices. It prohibits debt collectors from using deceptive or unfair practices to collect debts.

Lelinger's ordeal began when he noticed inaccuracies in the information reported by Shellpoint to Experian. According to the lawsuit, "The plaintiff disputes the accuracy of the information reported by Shellpoint to Experian." The report allegedly contained false and inaccurate credit information, which Lelinger promptly disputed. However, his efforts to rectify the situation were met with resistance.

Despite his dispute, the lawsuit alleges that both Experian and Shellpoint failed to conduct a reasonable reinvestigation of the disputed information. The lawsuit states, "The defendants failed to conduct a reasonable reinvestigation of the disputed information and failed to correct the inaccurate reporting." This alleged failure is a direct violation of the FCRA, which mandates that credit reporting agencies and furnishers of information must conduct a thorough reinvestigation when a consumer disputes the information on their credit report.

In addition to the alleged FCRA violations, Shellpoint is also accused of violating the FDCPA. The lawsuit alleges that Shellpoint engaged in illegal practices regarding the collection of alleged consumer debt. The FDCPA prohibits such practices and provides consumers with legal recourse if they are subjected to abusive, unfair, or deceptive debt collection practices.

The lawsuit seeks to represent a class of all Florida consumers who have found themselves in a similar situation to Lelinger. Specifically, the proposed class includes those who disputed incorrect information reported by Shellpoint to Experian, where Shellpoint allegedly failed to correct the disputed information from two years prior to the filing of the lawsuit until the time of judgment.

In terms of damages, Lelinger and the proposed class are seeking monetary compensation. This includes actual, statutory, and punitive damages, as well as attorney's fees and costs. The lawsuit states, "The plaintiff seeks monetary damages, including actual, statutory, and punitive damages, as well as attorney's fees and costs."

This lawsuit serves as a stark reminder of the importance of accurate credit reporting and fair debt collection practices. It underscores the rights of consumers under the FCRA and FDCPA, and the legal recourse available to them should these rights be violated.

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