Statebridge Unlawfully Reported Charged-Off Debts More Than Seven Years Old, Class Action Claims
by Erin Shaak
Holder v. Statebridge Company, LLC
Filed: January 11, 2022 ◆§ 1:22-cv-00115
A proposed class action claims Statebridge Company, LLC has unlawfully reported to credit bureaus debts that were delinquent for more than seven years.
Georgia
A proposed class action claims Statebridge Company, LLC has unlawfully reported to credit bureaus debts that were delinquent for more than seven years.
The 33-page case states that the federal Fair Credit Reporting Act (FCRA) prohibits the reporting of delinquent accounts that predate the report by more than seven years.
The plaintiff, a Georgia resident, alleges Statebridge unlawfully threatened to include his debt on a credit report more than seven years after it was first delinquent, and subsequently reported the debt to two major credit bureaus. Moreover, the plaintiff individually alleges Statebridge sent him a collection letter that listed the wrong address for the property that supposedly secured the underlying debt.
Per the suit, the plaintiff obtained a home equity line of credit in March 2005 that was secured by his Cumming, Georgia property. The loan became delinquent in April 2007 and was charged off by JPMorgan Chase in September of that year, the case relays. The plaintiff’s loan was eventually acquired by Wilmington Savings Fund Society, who contracted with Statebridge to service the loan, the suit says.
The plaintiff claims to have received a letter from the defendant in early July 2021 that contained the following warning:
“CREDIT REPORTING. We may report information about your account to credit bureaus. Late payments, missed payments, or other defaults on your account may be reflected in your credit report. As required by law, you are hereby notified that a negative credit report reflecting on your credit record may be submitted to a credit reporting agency if you fail to fulfil the terms or [sic] your credit obligations.”
The lawsuit contends that the letter was sent to the plaintiff more than seven years after his loan became delinquent, meaning the defendant was not permitted by law to make the aforementioned threats or report the loan to credit bureaus.
According to the suit, Statebridge “followed through on its threat” and reported the loan to Experian and TransUnion. Although the plaintiff disputed the accuracy of the reporting of his loan, both Experian and TransUnion advised the man that they had verified the defendant’s reporting as accurate, the complaint relays.
The case claims Statebridge has likely sent similar letters to other consumers whose debts became delinquent more than seven years prior.
The plaintiff also claims on an individual basis that Statebridge listed the wrong address for the property by which his loan was secured. In a May 31 letter, Statebridge allegedly claimed to be the plaintiff’s “new mortgage servicer,” and noted that it was attempting to collect a debt secured by a property located in Cumming, Georgia, which is the plaintiff’s current residence, according to the case. The plaintiff claims he never signed any documents establishing a security interest in that particular home in relation to the loan.
The lawsuit looks to represent anyone with a Georgia address to whom, within one year before the lawsuit was filed and the present, the defendant sent a letter that contained the same credit reporting disclosure in the plaintiff’s letter, sought to collect a debt charged off more than seven years prior to the date of the letter, and was not returned by the U.S. Postal Service.
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