Clark v. Saxon Mortg. Co., 2011 U.S. Dist. LEXIS 74052 (M.D. La. July 7, 2011)

Facts: Plaintiff sued the three CRAs and Saxon Mortgage Company alleging that Defendants defamed him, violated Louisiana consumer protection and privacy laws, and violated the Fair Credit Reporting Act ("FCRA"). Plaintiff requested, in addition to actual and punitive damages, that the Court declare that Defendants violated the FCRA and issue an injunction forcing Defendants to remove the allegedly false entries . Trans Union and Experian moved to dismiss Plaintiff's claim for injunctive relief under the FCRA. The Court held that a private litigant may not seek injunctive relief under the FCRA and that Plaintiff's claims for injunctive relief under Louisiana consumer protection laws were directly preempted by the FCRA.

  • Injunctive Relief. Sections 1681n and 1681o set out the potential civil liability available to a private litigant under the FCRA, and neither section makes any mention of equitable relief. Further, § 1681s(a) allows for only the FTC to seek equitable relief under the FCRA. In accordance with the Fifth Circuit and the vast majority of federal courts that have analyzed this issue, this Court held that private litigants may not file for injunctive relief under the FCRA.
  • Preemption. The Court determined that Plaintiff did not have a claim for equitable relief under Louisiana consumer protection laws because they were directly preempted by the FCRA, which regulates similar conduct. It further held that under § 1681h(e), Plaintiff's defamation and privacy claims warranted equitable relief only if Plaintiff showed that Defendants acted with malice or with willful intent to injure him. Plaintiff failed to allege any specific facts to support his conclusory statements that Defendants acted with willful intent to injure him. Thus, Plaintiff's claims could not survive Defendants' Rule 12(b)(6) motions to dismiss.

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