Vested Property Rights in Your Credit and Good Name

This folder is for general discussion of debt collection issues. As with all postings in this forum, appropriate language and courtesy are to be used or the postings will be struck.
Post Reply
David A. Szwak
Posts: 1974
Joined: Thu Jul 13, 2006 11:19 pm

Vested Property Rights in Your Credit and Good Name

Post by David A. Szwak »

Consumers have a vested property right in their credit reports and ratings. It has long been found that credit reports, credit ratings, and the rights thereunder are property rights of each consumer. Kite v. Kaplan, 747 So.2d 503 [La. 1999] [High Court upheld court of appeal's award of $50,000.00 for damage to credit rating and reputation, etc.]; Patterson v. Livingston Bank, 509 So.2d 6 [La. App. 1 Cir. 1987]; Williams v. Equifax, 892 F.Supp. 951 [U.S.D.C. E.D. Mich. 1995]; Riley v. Dun & Bradstreet, 172 F.2d 303 [6th Cir. 1949]; Altoona Clay Products v. Dun & Bradstreet, 286 F.Supp. 899 [U.S.D.C. W.D. Pa. 1968]; McClain v. South Carolina National Bank, 105 F.3d 898 [4th Cir. 1997] [ruled against the plaintiff-consumer but criticized the consumer for failing to properly plead, inter alia, a claim for impairment of credit rating]. A credit issuer's "ability to report on the credit habits of its customers is a powerful tool designed, in part, to wrench compliance with payment terms from its cardholder." Thus, a creditor's "refusal to correct mistaken information can only be seen as an attempt to tighten the screws on a non-paying customer." Miranda-Riviera v. Bank One, 145 F.R.D. 614, 1993 WestLaw 30681 (U.S.D.C. P.R. 1993). An erroneous or careless report serves no purpose but to substantially damage the target of the report, who after publication can do little to correct the damage caused by the report. Bartels v. Retail Credit Co., 175 N.W.2d 292 (Neb. 1970).
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak
509 Market Street, 7th Floor
Mid South Tower
Shreveport, Louisiana 71101
318-221-6444
Fax 318-221-6555
Post Reply

Return to “General Discussion”