EAST ST. LOUIS - A couple claims Equifax has failed to correct their credit report after a mortgage company incorrectly accused them of defaulting on a loan.
Gary M. and Constance S. Lager filed a federal lawsuit on Jan. 25 in the U.S. District Court for the Southern District of Illinois against Shellpoint Mortgage Servicing, LLC and Equifax Information Services, LLC, alleging claims under the Dodd-Frank Wall Street Reform and Consumer Protection Act, the Real Estate Settlement Procedures Act, the Fair Credit Reporting Act and the Fair Debt Collection Practices Act.
According to the lawsuit, the Lagers filed a Chapter 13 bankruptcy case on Nov. 27, 2018, that was confirmed on Feb. 21, 2019, and later modified on Aug. 19, 2020. The Lagers were to make monthly payments of $1,850 to the Chapter 13 trustee, from which Ditech Financial, LLC, predecessor in interest to Shellpoint, would receive approximately $755.29 per month. On Aug. 27, 2020, the trustee filed a report of plan completion request for termination of wage order and notice concerning discharge. On Oct. 2, 2020, an order of discharge was entered.
However, on May 20, 2021, Shellpoint contacted the Lagers' claiming the loan had been defaulted and was seeking to collect $27,215.71. The Lagers requested additional information about the loan, which was never provided. The Lagers filed multiple notices of error with Shellpoint and was not contacted in regards to the situation. As of Jan. 21, 2022, Shellpoint had yet to release the mortgage lien or take corrective action in response to the notices of error.
In August 2021, the Lagers received a copy of their consumer credit report by Equifax which reported inaccurate and misleading information provided by Shellpoint. On Aug. 26, 2021, the Lagers disputed the report and advised Equifax of the facts. Equifax did not notify Shellpoint of the Lagers dispute, did not respond to one of two dispute letters and failed to investigate the Lagers claims against Shellpoint.
The plaintiffs seek judgment for actual damages, including emotional distress, interest, costs and reasonable attorney fees; statutory damages of $1,000 for each and every violation contained in count II; statutory damages of $2,000 against Shellpoint for each violation contained in count III; statutory damages of $1,000 against Shellpoint for the violations set forth in count IV and punitive damages.
The Lagers are represented by Travis W. Cohron of Clark Quinn Moses Scott & Grahn LLP in Indianapolis.
U.S. District Court for the Southern District of Illinois case number 3:22-cv-00155