U.S. Bank improper credit reports $450K class action settlement

U.S. Bank has agreed to a $450,000 class relief settlement to resolve class action lawsuit allegations it violated the Fair Credit Reporting Act (FCRA) by obtaining credit reports without purpose or permission. 

The settlement class is defined as “all persons about whom, during the two-year period prior to the filing of the Complaint, Defendant obtained a consumer report after that consumer had obtained a bankruptcy discharge of any secured obligation such consumer owed to Defendant, and after that Defendant regained legal possession of the real property securing such obligation.” 

The lead plaintiff in the class action lawsuit, Cody Leitzman, claimed U.S. Bank, as part of the bankruptcy process, filed a Motion for Relief from Stay, “ostensibly to take control of the property securing the mortgage.” 

Shortly after, the plaintiff moved out of the home. About two months later, the bankruptcy court granted the bank’s motion and ordered the bankruptcy trustee to abandon the collateral that was the home. 

The plaintiff owed no other debt to the bank at the time he filed his bankruptcy petition, and had no other accounts with U.S. Bank. Later that year, however, the bank accessed his credit file from Equifax Information Services, according to the lawsuit. Equifax is a consumer reporting agency. 

The lawsuit claims Leitzman did not give consent to the bank to access his credit report and claimed the bank had no legitimate business reason to do so. The suit claims this is a violation of the FCRA. Leitzman claims U.S. Bank caused harm to his credit rating and reputation.

The FCRA is a federal consumer protection law. It lays out specific circumstances in which a consumer reporting agency may furnish a consumer report. 

According to Consumer Financial Protection Bureau, the reasons to furnish a consumer report to a financial institution are:

• In connection with a credit transaction
• For employment purposes
• In connection with the underwriting of insurance involving the consumer
• In connection with a determination of the consumer’s eligibility for a license or other benefit granted by a governmental instrumentality that is required by law to consider an applicant’s financial responsibility
• As a potential investor or servicer, or current insurer, in connection with a valuation of, or an assessment of the credit or prepayment risks associated with, and existing credit obligation
• Otherwise has a legitimate business need for the information

U.S. Bank, based in Minneapolis, is the fifth-largest banking institution in the United States, according to MX, and is ranked 117th on the Fortune 500 list. The holding company has more than $541 billion in total assets, according to the Federal Financial Institutions Examination Council’s National Information Center.

U.S. Bank denies the allegations of wrongdoing.

All settlement class members were to be informed of the settlement via email or postage.

Members of the settlement class may opt out of the settlement. The deadline for exclusion or objection is Aug. 30, 2022.

The final fairness hearing is scheduled for Nov. 2, 2022.

No claim form is required in order for class members to benefit from the U.S. Bank class action lawsuit settlement. Checks containing payments must be cashed within 90 days of issuance, or they will be voided.

Who’s Eligible

The settlement class is defined as “all persons about whom, during the two-year period prior to the filing of the Complaint, Defendant obtained a consumer report after that consumer had obtained a bankruptcy discharge of any secured obligation such consumer owed to Defendant, and after that Defendant regained legal possession of the real property securing such obligation.” 

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion or Objection Deadline

08/30/2022

Case Name

Cody Leitzman v. U.S. Bank National Association, Case No.1:20cv01055, in the U.S. District Court for the Southern District of Indiana, Indianapolis Division

Final Hearing

11/02/2022

Settlement Website

LeitzmanSettlement.com

Claims Administrator

Leitzman Settlement – 7637
PO Box 2599
Faribault, MN 55021-9599
admin@LeitzmanSettlement.com
833-711-0272

Class Counsel

David M Marco
SMITHMARCO PC

Defense Counsel

Thomas J Cunningham
Nicholas O’Conner
Lindsey E Kress
LOCKE LORD LLP