Fair Credit Reporting Act-Evidence

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7^th Circuit Court of Appeals

Case Name: Demona Freeman v. Ocwen Loan Servicing, LLC

Case No.: 23-2512

Officials: Rovner, Brennan, and Kirsch, Circuit Judges.

Focus: Fair Credit Reporting Act-Evidence

Demona Freeman obtained a loan to buy her home, which was assigned to the Bank of New York Mellon (BNY Mellon) and serviced by Ocwen Loan Servicing, LLC. After falling behind on her mortgage payments, BNY Mellon initiated a foreclosure proceeding. Freeman subsequently filed for bankruptcy and resolved her mortgage default through bankruptcy payments. Despite this, Ocwen reported her loan as delinquent and refused to accept her monthly payments, prompting BNY Mellon to file a second foreclosure action, which was later dismissed. Freeman then sued Ocwen and BNY Mellon for violations of the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA).

The Southern District of Indiana dismissed Freeman’s FCRA claim and granted summary judgment on her FDCPA claim due to a lack of standing. Freeman appealed both decisions, arguing that Ocwen had failed to conduct a reasonable investigation after being alerted by consumer reporting agencies (CRAs) about her dispute over the delinquent reporting. She also contended that Ocwen’s inaccurate reporting and collection practices caused her various damages.

The Seventh Circuit affirmed the dismissal of the FCRA claim, noting that Freeman had not specified which CRA she notified, thus not giving Ocwen proper notice of the claim. The court also upheld the summary judgment on the FDCPA claim, finding that Freeman lacked standing as she did not provide sufficient evidence of concrete injuries, such as financial damage or intangible harms akin to defamation or invasion of privacy.

Affirmed.

Decided 07/12/24

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