$800,000 Credit Reporting Verdict -The Justin Peters Case
Justin Peters, a Colorado business owner, and Air National Guardsman, was wrongfully accused of missing two mortgage payments by American Pacific Mortgage. His credit was wrecked, causing him to be unqualified to finance his engagement ring, and he was denied a Home Equity Line of Credit needed for home repairs.
The impact of American Pacific Mortgage’s error on Peters’ life was devastating. While the company claimed it was a “data error”, the consequences were severe.
This case highlights how consumers can leverage legal action to hold companies accountable for errors that harm their credit, fostering more careful practices within the mortgage industry. The verdict for Peters not only provided compensation for his damages but also underscored the critical importance of accurate credit reporting.
Immediate credit damage: Peters was falsely reported as delinquent on two mortgage payments, wrecking his credit history despite never missing a payment.
Real financial consequences: The credit damage prevented him from financing his fiancée’s engagement ring and he was denied a Home Equity Line of Credit needed for home repairs.
Successful legal battle: After three years of litigation, a Larimer County jury found American Pacific Mortgage negligent under the FCRA, resulting in an $800,000 verdict for Peters. Read Full Denver7 Article
Perfect Payment Record Destroyed by Mortgage Company's "Data Error"
Justin Peters, a Colorado business owner and Air National Guardsman, was wrongfully accused of missing two mortgage payments by American Pacific Mortgage. This caused him to be unable to obtain credit, rendering him unqualified to finance his engagement ring, and he was denied a Home Equity Line of Credit needed for home repairs.
Peters contacted Ramos Law, and consumer protection attorney Matthew Osborne immediately began investigating the matter. He quickly discovered that American Pacific Mortgage had made a mistake and that Peters had never missed a payment.
After a three-year battle and a lawsuit against American Pacific Mortgage, a Larimer County jury found American Pacific Mortgage negligent under the Fair Credit Reporting Act (FCRA). Osborne won an $800,000 verdict on behalf of Peters.
If you have been a victim of bad credit reporting or if your credit has been damaged as a result of a mistake by a mortgage banker, contact our law firm today. Our consumer law attorneys in Colorado will fight for your rights and help you get the justice you deserve.
Mortgage Company's Inadequate Investigation
Internal records revealed the shocking inadequacy of American Pacific Mortgage’s investigation procedures. Court documents revealed that third-party investigators spent only a few minutes investigating Peters’ complaints. This cursory review process violated FCRA requirements for thorough dispute investigations.
In December 2021, American Pacific Mortgage acknowledged its error in writing, sending a letter that blamed a “data error” and stated, “the negative reporting should not have occurred.” However, the company continued providing incorrect information to credit bureaus behind the scenes while assuring Peters the matter would be resolved.
Colorado's Evolving Consumer Protection Landscape
This victory comes at a critical time for Colorado consumer protection laws. The state currently has one of the weakest consumer protection frameworks in the nation, with a restrictive 26-year-old legal precedent requiring consumers to prove “significant public harm” before individual claims can be heard in court. Matt Osborne has been vocal about these limitations, stating that Colorado stands alongside only Georgia, Nebraska, New York, and South Carolina with such restrictive requirements.
House Bill 1014 (HB24-1014), introduced by Rep. Mike Weissman, aims to eliminate this “significant public harm” requirement and strengthen consumer protection. The proposed legislation would empower consumers to pursue individual claims against businesses engaging in unfair or deceptive practices, regardless of broader community impact. This reform would provide crucial protections for major purchases like cars and homes, areas where consumers currently face significant challenges seeking justice.
(FAQ) Frequently Asked Questions
How long do companies have to investigate credit report disputes?
Credit reporting agencies must investigate disputes within 30 days of receiving your complaint. They must provide you with the results of their investigation and update your credit file if errors are found.
Can I sue for emotional distress caused by credit reporting errors?
Yes, the Peters case demonstrates that FCRA violations can result in substantial emotional distress awards. The $800,000 verdict was primarily for emotional distress damages. The amount depends on the severity of the violation and its impact on your life.
What government resources are available for credit reporting complaints?
The Federal Trade Commission (FTC) at ftc.gov and Consumer Financial Protection Bureau (CFPB) at consumerfinance.gov provide comprehensive information about FCRA rights and complaint procedures.
How often should I check my credit reports?
Financial experts recommend checking your credit reports frequently to catch errors early. You can currently access free weekly credit reports from all three major bureaus through annualcreditreport.com
What happens if a mortgage company acknowledges their error but doesn't fix it?
As shown in the Peters case, mortgage companies can be held liable for continuing to report false information even after acknowledging their mistakes. This conduct can strengthen your legal case and increase potential damages.
Contact Ramos Law Consumer Protection
Ramos Law is proud to have represented Justin Peters in this case, and we are committed to fighting for the rights of consumers. If you have been subject to unfair practices from a lender, Ramos Law is available to help.
Contact us today for a free case review with one of our experienced team members who can help protect your rights and get you the justice and compensation you deserve.