Facts

Reco Prianto sued Heritage Pacific Financial LLC and Experian Information Solutions Inc., following the foreclosure of his home.

PLAINTIFF'S CONTENTIONS:
Plaintiff alleged that in 2007, he purchased a home in Sacramento, which was financed by loans secured by a first and second deed of trust on the property. The junior loan was later transferred or sold to defendant Heritage. In 2009, plaintiff defaulted on the loan, so the holder of the first deed foreclosed on the property. In 2009, a trustee's sale took place, which effectively extinguished the second deed of trust. Consequently, defendant Heritage became the "sold-out junior lienholder." In 2011, Heritage began reporting to the three national credit reporting agencies, including defendant Experian, that plaintiff's loan had been past due in the amount of $96,601. However, the junior loan held by Heritage was subject to the state's anti-deficiency statute. As such, Heritage's reports to the credit bureaus were inaccurate and misleading. Plaintiff then filed a dispute, which proved futile, prompting plaintiff to sue defendants for violating the Fair Credit Reporting Act and the California Consumer Credit Reporting Agencies Act.

DEFENDANTS' CONTENTIONS:
Defendant Experian denied plaintiff's allegations and asserted various affirmative defenses. Following Heritage's dismissal, Experian then moved for judgment on the pleadings, arguing that plaintiff failed to state a claim for relief because the Fair Credit Reporting Act does not allow a consumer to collaterally attack the legal validity of his debt by suing a credit reporting agency.

Result

The court concluded that Prianto's claims fail as a matter of law and therefore granted Experian's motion for judgment on the pleadings without leave to amend.

Other Information

FILING DATE: July 25, 2013.