Judge Rules Wells Fargo, Citi Must Face Consumers’ Claims of Inaccurate Credit Reports

first_imgHome / Daily Dose / Judge Rules Wells Fargo, Citi Must Face Consumers’ Claims of Inaccurate Credit Reports Servicers Navigate the Post-Pandemic World 2 days ago Bankruptcies Citigroup Credit Reporting Experian Foreclosures Short Sales Wells Fargo 2014-10-03 Brian Honea Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago  Print This Post Related Articles Demand Propels Home Prices Upward 2 days ago Previous: New York AG Sues Law Firms for Mortgage Loan Relief Scam Next: Fannie Mae: Employment Report Supports Forecast of ‘Solid Economic Growth’ Share Save Sign up for DS News Daily Judge Rules Wells Fargo, Citi Must Face Consumers’ Claims of Inaccurate Credit Reports Brian Honea’s writing and editing career spans nearly two decades across many forms of media. He served as sports editor for two suburban newspaper chains in the DFW area and has freelanced for such publications as the Yahoo! Contributor Network, Dallas Home Improvement magazine, and the Dallas Morning News. He has written four non-fiction sports books, the latest of which, The Life of Coach Chuck Curtis, was published by the TCU Press in December 2014. A lifelong Texan, Brian received his master’s degree from Amberton University in Garland. center_img Demand Propels Home Prices Upward 2 days ago Servicers Navigate the Post-Pandemic World 2 days ago The Best Markets For Residential Property Investors 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Tagged with: Bankruptcies Citigroup Credit Reporting Experian Foreclosures Short Sales Wells Fargo About Author: Brian Honea in Daily Dose, Featured, Loss Mitigation, News October 3, 2014 994 Views A federal judge earlier this week dismissed a bid by Wells Fargo Bank and Citigroup’s mortgage unit to have a lawsuit against them thrown out accusing the lenders of violating federal law by inaccurately reporting information about short sales to credit agencies, subsequently hurting consumers’ chances of obtaining loans.U.S. District Judge Janis Sammartino ruled that consumers had provided enough facts to support their claims against Wells Fargo and Citigroup, and that the two lenders must face trial over the claims.The lawsuit alleges that the two lenders reported short sales, which are sales of homes at risk of foreclosure for less than the balance of the mortgage, as foreclosures or bankruptcies to credit agencies when updating consumers’ reports and then failed to correct the mistakes. According to the lawsuit, Citi and Wells used the wrong code to report the short sales to credit reporting agency Experian.Experian was also named as a defendant in the lawsuit. Plaintiffs allege that the credit reporting agency failed to ensure that the information Citi and Wells reported to them was accurate and that the credit agency failed to properly investigate consumers’ complaints regarding the matter.The lawsuit seeks class action status and was filed on behalf of John Shaw of Alpine, California, and other consumers. The suit accuses the defendants of violating the U.S. Fair Credit Reporting Act.Wells Fargo spokesman Tom Goyda said regarding the case, “Wells Fargo is prepared to present its arguments in court.” Citi spokesman Mark Rodgers said, “We deny the allegations and believe the case is without merit.” Experian could not immediately be reached for comment. Subscribelast_img