Homeowner sues mortgage company for reporting foreclosure to credit bureaus

Michelle Massey, East Texas Bureau Sep. 14, 2010, 6:10pm

A Dayton resident has filed a lawsuit against his mortgage company after the company reported his house was foreclosed to the credit reporting agencies.

Jessie Mitchell filed suit against American Home Mortgage Servicing Inc. on Sept. 10 in the Eastern District of Texas, Beaumont Division.

According to court records, the account relates to a foreclosure that occurred in August 2005.

Mitchell states the defendant reported the foreclosure to the credit reporting agencies around December 2009. Instead, he argues, the debt should not be reported until August 2012.

He states he disputed the information with the credit bureaus and provided the defendant with the information but the defendant has not assisted the credit reporting agency in reinvestigations of the debt.

"Notwithstanding Plaintiff's efforts and Defendant's duties, Defendant continued publishing the inaccurate information and Defendant continued to publish and disseminate such inaccurate information to other credit reporting agencies," the lawsuit states.

Mitchell argues the defendant's lack of efforts amounts to violations of the Fair Credit Reporting Act.

The defendant is accused of negligence for failing to conduct an investigation of the inaccurate information, failing to review all relevant information concerning Mitchell's account, failing to report the inaccurate status of the inaccurate information to all credit reporting agencies, failing to properly comply with the reinvestigations, and negligently continuing to furnish the inaccurate account information.

The plaintiff is seeking an award of actual compensatory damages for out of pocket expenses, emotional distress, mental anguish and decreased credit score, statutory damages of $1,000, punitive damages, attorneys' fees and court costs.

Mitchell is represented by Dennis R. Kurz of Weisberg & Meyers in Phoenix, Ariz. Jury trial is requested.

Case No. 1:10cv00549

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