In 2021, a groundbreaking case was filed against Nissan Motor Acceptance Corporation (NMAC) in the Central District of California for violations of the Fair Credit Reporting Act (FCRA) and the California Consumer Credit Reporting Agencies Act (CCRAA). What started as a credit reporting dispute culminated in a monumental $600,000 offer of judgment in 2023. This outcome is one of the largest known offers of judgment in a consumer credit reporting case.

The Plaintiff’s Journey: A Mortgage Denial Due to Inaccurate Reporting

Mayra Aranda, the plaintiff, had entered into three automobile lease contracts with Nissan—two in 2007 and another in 2010. By the time the leases ended in 2010 and 2013, all balances were fully paid, and no money was owed.

However, in April 2021, Aranda sought pre-approval for a mortgage to purchase a home. To her dismay, she discovered that NMAC was still inaccurately reporting balances and monthly payments on all three leases. This false reporting inflated her debt-to-income ratio, leading to a mortgage denial. The denial not only cost Aranda the opportunity to buy a home but also prevented her from taking advantage of historically low interest rates available at the time.

Frustrated and harmed, Aranda heard about Youssef Hammoud and reached out to figure out how she could solve her problem. Immediately, a lawsuit was filed under the FCRA and CCRAA to compel the correction of her credit reports and seek justice for the harm caused.

The FCRA and CCRAA: Protecting Consumers from Inaccurate Credit Reporting

The FCRA and CCRAA are designed to safeguard consumers from the devastating effects of inaccurate credit reporting.

• FCRA (Federal Law):
  This law requires furnishers, such as NMAC, to investigate disputes, review all relevant information, and report accurate findings to the credit reporting agencies (CRAs). If the investigation reveals inaccuracies, furnishers must promptly correct the information across all CRAs where it was reported.

• CCRAA (California Law):
  This state law prohibits furnishers from knowingly or negligently reporting false information to CRAs. It reinforces consumers’ rights to accurate credit reporting and accountability from furnishers.

NMAC failed to meet these legal obligations on multiple occasions, verifying inaccurate information despite receiving disputes from Aranda.

A Victory for Consumers

As the case proceeded, it became clear that NMAC had repeatedly violated both the FCRA and the CCRAA. Aranda’s efforts to hold NMAC accountable not only exposed these violations but also highlighted the real-life harm caused by inaccurate credit reporting.

Ultimately, NMAC made an offer of judgment for $600,000, which Aranda accepted. This significant monetary result underscores the financial and emotional toll that inaccurate credit reporting can inflict, as well as the relief available through legal action.

Why This Case Matters

Aranda’s case is a beacon of hope for consumers who face the consequences of inaccurate credit reporting. Such inaccuracies can result in mortgage denials, as in Aranda’s case, or denials for auto loans, student loans, or new credit cards.

This lawsuit highlights the strength of consumer protection laws and the potential for individuals to recover damages when their rights are violated. It also demonstrates the critical role of skilled legal advocacy in achieving justice for harmed consumers.

Trust The Credit Attorney to Fight for Your Rights

One of the key lawyers behind this monumental win was Youssef Hammoud, founder of The Credit Attorney. With a proven track record of fighting tirelessly for consumers’ rights, The Credit Attorney is committed to holding violators of credit reporting laws accountable.

If you’ve been harmed by inaccurate credit reporting, rest assured that The Credit Attorney will advocate for your needs and fight to restore your financial stability.

Conclusion

This case against NMAC is more than a legal victory—it’s a testament to the resilience of consumers and the protections afforded by federal and state credit reporting laws. If you find yourself facing the harmful effects of inaccurate credit reporting, know that justice is within reach, and attorneys like Youssef Hammoud at The Credit Attorney are here to help.