Comenity Bank class action claims bank wrongfully obtained credit reports

Comenity Bank class action overview: 

• Who: A Comenity Bank customer filed a class action lawsuit against the company.
• Why: The plaintiff alleges the financial institution improperly obtained her credit report following the discharge of her debts in a Chapter 7 bankruptcy, 
• Where: The class action was filed in an Indiana federal court.

A consumer hit Comenity Bank with a class action lawsuit alleging the financial institution improperly obtained her credit report following the discharge of her debts in a Chapter 7 bankruptcy and has done it to others, too.

Plaintiff Kimberly Jo Devish filed the class action complaint against Comenity Bank Nov. 22 in an Indiana federal court, alleging violations of the Fair Credit Reporting Act.

The FCRA is designed to ensure consumer reporting agencies follow procedures that respect confidentiality, accuracy and fair use of credit information, the class action lawsuit states. According to Devish, Comenity Bank violated these principles by pulling her credit report on Feb. 15, 2024, months after she discharged her debts through bankruptcy.

“Defendant had no collection purpose and no account review purpose because the account no longer existed,” the class action states. 

The lawsuit also alleges Comenity’s actions are part of a broader “pattern and practice” of obtaining credit reports from individuals who completed bankruptcy discharges.

Comenity collected debts despite bankruptcy, class action alleges

Devish says her Chapter 7 bankruptcy filing resulted in the discharge of all debts owed to Comenity Bank 

Court filings state Comenity received electronic notice of the bankruptcy and discharge, rendering any subsequent collection or account review activity unwarranted, the class action says.

Despite this, the bank allegedly accessed her Experian credit report without a permissible purpose, violating FCRA provisions that restrict such actions, according to the lawsuit.

Devish says she wants to represent anyone whose credit reports Comenity allegedly accessed without permissible purpose following bankruptcy discharges over the past two years.

She’s seeking damages, fees and costs on behalf of about 40 class members.

In other banking news, a consumer recently filed a class action lawsuit against Flagstar Bank, accusing it of deceptive practices involving certificate of deposit accounts. 

What do you think of the allegations in this Comenity Bank class action? Let us know in the comments.

The plaintiff is represented by Joshua D. Arisohn and Julian C. Diamond at Bursor & Fisher P.A. 

The Comenity Bank class action lawsuit is Kimberly Jo Devish v. Comenity Bank, Case No. 1:24-cv-02083-JMS-MKK in the U.S. District Court for the Southern District of Indiana.

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