Fair Credit Reporting Act,

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7^th Circuit Court of Appeals

Case Name: Jeffrey Chaitoff v. Experian Information Solutions

Case No.: 21-2632

Officials: Hamilton, St. Eve, and Kirsch, Circuit Judges.

Focus: Fair Credit Reporting Act,

Mistakes in compiling and reporting credit information are inevitable. Jeffrey Chaitoff sued under the Fair Credit Reporting Act alleging that Experian made a mistake when it omitted a fact from his credit report, then failed to correct its error. Chaitoff signed an agreement with his mortgage lender that allowed him to make lower payments and avoid foreclosure

Chaitoff sued under the Fair Credit Reporting Act, 15 U.S.C. 1681, alleging that Experian failed to correct its error. The particular scenario involved Chaitoff having entered into an agreement with his mortgage lender, which enabled him to make reduced payments and sidestep the threat of foreclosure. Rather than accurately reflecting this agreement, Chaitoff’s credit report inaccurately indicated that he had fallen behind on his payments. The district court granted summary judgment in favor of Experian.

However, the Seventh Circuit reversed in part the district court’s ruling. The appellate court established that the omission of substantial information holds legal weight under the FCRA; the act of reporting the mere existence of the agreement did not entail the application of legal principles to factual circumstances. While Experian’s initial attempts at reporting appeared reasonable, the court found that Experian’s investigative efforts following Chaitoff’s notification of the discrepancy were potentially lacking. The court suggested that a reasonable jury could determine that Experian could have taken a cost-effective measure to uncover the existence of the agreement. Furthermore, Experian’s subsequent credit reports did not acknowledge Chaitoff’s dispute, a requirement stipulated by the FCRA.

Affirmed, Remanded and Reversed.

Decided 08/14/23

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