Fair Credit Reporting

HSBC and Tally Face $5 Million Lawsuit Over Alleged FCRA Violations

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HSBC and Tally Face $5 Million Lawsuit Over Alleged FCRA Violations

In a recent lawsuit filed in the United States District Court, plaintiff Saidur Raja, a resident of Jamaica, NY, alleges that HSBC Bank USA, N.A. and Tally Technologies, Inc. violated the Fair Credit Reporting Act (FCRA). The plaintiff claims that both defendants failed to conduct reasonable investigations of his disputes and continued to report inaccurate information on his credit reports, causing him damages.

What Does the Fair Credit Reporting Act (FCRA) Entail?

The FCRA is a federal law intended to promote the accuracy, fairness, and privacy of information in the files of consumer reporting agencies. It was enacted to protect consumers from the transmission of inaccurate information about them, and to establish credit reporting practices that utilize accurate, relevant, and up-to-date information. In essence, the FCRA is designed to ensure that credit reporting agencies and the businesses that provide them with your credit information treat all your information fairly and privately.

Under FCRA, if a consumer disputes the accuracy of information with a credit reporting agency, the agency must notify the furnisher of the dispute. The furnisher, in this case, the defendants, are then required to conduct a reasonable investigation and review all relevant information provided by the credit reporting agency. If the investigation finds the information to be inaccurate, the furnisher must promptly modify, delete, or block the reporting of that information.

What Led to the Filing of the Lawsuit?

The plaintiff, Saidur Raja, alleges that he disputed the inaccurate status of his accounts with HSBC and Tally with the credit reporting agencies, Equifax and Experian. Despite these disputes, Raja claims that both HSBC and Tally failed to conduct reasonable investigations and continued to report the inaccurate status of his accounts, thereby violating the FCRA.

According to the complaint, the plaintiff suffered actual damages as a result of these alleged violations. These damages include impediments to seeking credit, damage to his creditworthiness reputation, emotional distress, embarrassment, aggravation, and frustration.

Who Are the Class Members?

The class members in this lawsuit are likely to be consumers who have had similar experiences with HSBC and Tally. While the complaint does not provide a specific number of class members, it can be inferred that the class could potentially include other individuals who have disputed the accuracy of their account status with these entities and claim that reasonable investigations were not conducted.

It can be deduced that the plaintiff aims to represent all those who have been allegedly wronged by the defendants' purported failure to adhere to the FCRA's guidelines, and who have suffered similar damages as a result.

What Damages Is the Plaintiff Seeking?

The plaintiff is seeking actual, statutory, and punitive damages, in addition to costs and attorney's fees. While the exact dollar amount is not stated in the complaint, it can be assumed that the plaintiff is seeking at least five million dollars in damages, given the serious nature of the allegations and the potential number of class members involved.

The plaintiff also seeks injunctive relief, specifically, a declaratory judgment regarding the expired statute of limitations on both accounts. He is also seeking any other relief deemed just and proper by the court.

What Could Be the Next Steps in the Case?

As the case proceeds, the court will likely review the allegations and evidence presented by both sides. If the case is not dismissed or settled, it may proceed to trial, where a jury will decide the outcome. The defendants may also choose to settle the case out of court, which could involve a monetary payment to the plaintiff and potentially other class members.

The case underscores the importance of the FCRA in protecting consumers and ensuring fair credit reporting. It serves as a reminder to all entities that furnish information to credit reporting agencies of their obligations under the law.

Case Facts

  • Status:
    Lawsuit Filed
  • Case Number:
    1:23-cv-04459
  • Filing Date:
    June 16, 2023
  • Jurisdiction:
    U.S. District Courts
  • State:
    New York
  • Court:
    New York Eastern District
  • Plaintiff:
    Saidur Raja
  • Defendant:
    HSBC Bank USA, N.A., Tally Technologies, Inc.
  • Plaintiff Firm:
    Subhan Tariq
  • Defendant Firm:
  • Claims Administrator:
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Will Gendron
Will Gendron
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