Target Hit With Unfair Debt Collection Class Action Lawsuit

Target Corporation is facing a possible $5 million class action lawsuit alleging that the retailer intentionally disregarded state and federal laws by trying to collect on a debt that didn’t belong to a California customer.

Lead plaintiff Damien Young says Target called repeatedly to inform him that his account was past due. However, Young claims that he told Target that the account and past due balance didn’t belong to him nor was he an authorized user on that account.

The Target class action lawsuit alleges that inaccurate statements regarding Young’s credit history were then reported to various credit agencies causing the plaintiff’s credit score to decline.

According to Young, Target did not notify him that they were going to report negative information on his credit score. In addition, the lawsuit states that Target also failed to correct the inaccurate information within 30 days of Young’s dispute.

“Defendant was acting by and through its agents, servants and/or employees who were acting within the course and scope of their agency or employment, and under the direct supervision and control of Defendant herein,” the Target complaint states. “The conduct of Defendant, as well as that of its agents, servants and/or employees, was malicious, intentional, willful, reckless, and in grossly negligent disregard for federal and state laws and the rights of Plaintiffs.”

The Target lawsuit alleges that not only has Young suffered from having a lower credit score, he has also experienced personal humiliation, embarrassment, and emotional distress.

Young claims that Target’s conduct violated the Rosenthal Fair Debt Collection Practices Act (RFDCPA) in multiple ways, including:

• Using unfair or unconscionable means in connection with an attempt to collect a debt
• Communicating or threatening to communicate credit information which is known or which should be known to be false
• Collecting an amount from the plaintiff that is not expressly authorized by the agreement creating the debt

For each RFDCPA violation, Young says that he and potential Class Members are entitled to $1,000 in statutory damages, in addition to actual damages.

The Target class action lawsuit also alleges violations of the California Consumer Credit Reporting Agencies Act. Young says that future Class Members should be awarded punitive damages between $100 and $5,000 for each CCRAA violation.

If approved, the unfair debt collection class action lawsuit would be open to all U.S. residents who Target reported an alleged debt, which they were not the authorized user of, on their credit report within one calendar year from the filing of the instant complaint on their credit report.

Young is represented by attorneys Todd M. Friedman and Adrian R. Bacon of the Law Offices of Todd M. Friedman.

The Target Unfair Debt Collection Class Action Lawsuit is Damien Young, et al. v. Target Corporation, Case No. 2:16-cv-00769-BRO-RAO, in the U.S. District Court for the Central District of California.