Credit Plus ‘Inactive’ Mortgage Status Report Class Action Settlement

A $750,000 class action settlement has been reached between Credit Plus Inc. and a group of consumers who allege the company inaccurately reported mortgage statuses as “inactive.”

In February 2016, plaintiffs Inmer Campos-Carranza and Joseph Agyeman sued Credit Plus alleging the company violated the Fair Credit Reporting Act (FCRA).

The FCRA, requires that a reseller of consumer reports, like Credit Plus, maintain reasonable procedures to ensure maximum possible accuracy of the information it includes in consumer reports.

The plaintiffs claimed that Credit Plus willfully violated this provision of the FCRA when it included a MERS Report with information that indicated plaintiffs had mortgage liens with an “inactive” status, without indicating whether the mortgage lien was paid-in-full, transferred to another servicer, foreclosed, or discharged in bankruptcy.

A MERS Report is a document containing information obtained from the Mortgage Electronic Registration System that identifies mortgages a person may currently have or obtained in the past.

According to the class action lawsuit, the practice of using “inactive” as a status is incomplete or misleading and can cause the mortgage underwriting process to be delayed or result in other problems with underwriting.

Under the terms of the Credit Plus inactive mortgage reporting class action settlement, a $750,000 Global Settlement Fund will be used to pay attorneys’ fees and costs not to exceed $225,000, incentive awards to Campos-Carranza and Agyeman not to exceed $5,000, and claims administration expenses, estimated to be $86,000.

The remaining settlement funds will be used to make pro rata cash payments to Class Members who submit a valid and timely claim.

Additionally, all settlement Class Members, including those who do not submit a Claim Form, may request their archived tri-merge credit report and MERS Report from Credit Plus at any time and for no charge.

Credit Plus denies that a MERS Report is a consumer report under the FCRA, that it did anything wrong, or that it violated any laws.

Class Members who wish to be excluded from or object to the settlement agreement must do so by Jan. 27, 2017.

Who’s Eligible

The settlement Class consists of “all consumers whom Credit Plus’ records reflect had a current address in Virginia at the time that a Credit Plus MERS Report with a mortgage status field indicating ‘inactive’ was ordered between February 4, 2014 through September 19, 2016.”

You should submit a Claim Form if you applied for a mortgage or mortgage refinance between Feb. 4, 2014 to Sept. 19, 2016, and believe your application was delayed, denied, or subject to additional scrutiny.

Potential Award

$142 (estimated)

The average cash payment is estimated to be approximately $142.78 if 10 percent of all Class Members, or approximately 3,070 Class Members, submit a valid and timely Claim Form.

Proof of Purchase

N/A

Claim Form

CLICK HERE TO FILE A CLAIM »

Claim Form Deadline

1/27/2017

Case Name

Inmer Campos-Carranza, et al.  v. Credit Plus Inc., Case No. 1:16-cv-00120, in U.S. District Court for the Eastern District of Virginia, Alexandria Division

Final Hearing

2/17/2017

Settlement Website

www.InactiveLitigation.com

Claims Administrator

Campos-Carranza v. Credit Plus, Inc.
c/o RSM US LLP
P.O. Box 1367
Blue Bell, PA 19422
800-222-2760

You may also send an email to questions@InactiveLitigation.com. Please make sure to provide your name, telephone number, address and return email address.

Class Counsel

Kristi Cahoon Kelly
Andrew J. Guzzo
KELLY & CRANDALL PLC

Leonard A. Bennett
Craig C. Marchiando
CONSUMER LITIGATION ASSOCIATES PC

Defense Counsel

O’Kelly E. McWilliams III
Brian A. Scotti
Julia K. Whitelock
GORDON RESS SCULLY MANSUKHANI LLP