Denton County man sues Capital One for violating Fair Credit Reporting Act

Michelle Keahey, East Texas Bureau Nov. 16, 2012, 1:15pm

SHERMAN - A Denton County resident has filed a lawsuit claiming that Capital One refused to honor an agreement to reduce his credit card debt and continued to report the debt on his credit report in violation of federal law. 

Peyton Inge filed suit against CSC Credit Services Inc. and Capital One (USA) Bank N.A. on Nov. 14 in the Eastern District of Texas, Sherman Division.

The plaintiff allegedly received written communication from Global Credit & Collection Corp. dated Feb. 7, 2011, in an attempt to collect a debt arising from Inge’s Capital One credit card. Inge contacted the Global representative and agreed to a payment plan.

However, before the final payment was completed Global indicated that it was “no longer servicing” the Capital One Account.

According to the lawsuit, Capital One continued to withdraw the preauthorized drafts. Inge states that after the final payment was withdrawn, Capital One sent Inge a letter stating that she still owed $8,219.

Capital One allegedly reported to the credit bureaus that Inge owed the debt. Inge attempted to dispute the debt, but was unsuccessful.

The defendants are accused of violating the Fair Credit Reporting Act by failing to properly investigate the dispute of the reporting of inaccurate information, failing to correct inaccurate information on Inge’s credit file, failing to establish or follow reasonable procedures to assure maximum possible accuracy in the preparation of the credit report and credit files it published and maintained concerning Inge.

The plaintiff is seeking an award of statutory, actual, and punitive damages, attorneys’ fees, and court costs.

Inge is represented by Martha Beard-Duncan of Weisberg & Meyers in Dallas. A jury trial is requested.

U.S. District Judge Ron Clark is assigned to the case.

Case No. 4:12-cv-00717

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