The Largest Non-Economic FCRA Award in United States History
In this video, Randy Manning of Ramos Law interviews consumer protection attorney Matt Osborne about a specific case he handled, Peters versus American Pacific. The case involved Justin Peters, an Air Force reservist, whose mortgage company, American Pacific Mortgage, misapplied a payment, causing his credit to be reported as late. Despite repeated calls from Peters and internal communications acknowledging their error, the company failed to correct the false report. After Ramos Law sued them, the company’s defense was that the issue was already fixed and Peters had no damages. However, Peters had suffered “non-economic” damages, including being denied credit for a home remodel and an engagement ring, along with significant stress and frustration.
Osborne explains the trial strategy for such cases, where there are no clear economic damages. The focus was on telling a compelling story and exposing the defendant’s bad conduct. He highlights key moments from the trial, including the defense’s inconsistent positions and a memorable incident where a Chewbacca sun visor was used to cover up documents during a deposition playback, making the defense appear as if they were hiding something. Initially, the jury awarded Peters $800,000, but the judge reduced the amount to $250,000, which the plaintiff accepted. The defense appealed but the verdict was affirmed by the court of appeals. The video concludes with a discussion of the significance of the case – “Hey, this is the biggest non-economic award on an FCRA case, ever! in America.”
Case Background
The case involves Justin Peters, who was in the Air Force reserves in Adams County, Colorado. He had a mortgage with American Pacific Mortgage. The mortgage company misapplied one of his payments, leading to a false report of a late payment to credit bureaus.
Despite acknowledging their error internally, the company failed to ask the credit bureaus to remove the late payment reports, leading Peters to sue them. Throughout the three year litigation process in Larimer County, it was discovered that third-party investigators spent only a few minutes on Peters’ complaints.
Damages and Trial Strategy
Peters had no economic damages but claimed non-economic damages, including being denied credit for a home remodel and an engagement ring, as well as general stress and frustration.
The trial strategy focused on telling a compelling story that a jury could connect with, which helped to overcome biases against awarding emotional or non-economic damages.
In His Own Words
Justin Peters sits down with Denver7 to explain what occurred in his own words.
FAQ Frequently Asked Questions
What was the case about?
The case involved a client, Justin Peters, who had a mortgage with American Pacific Mortgage. The company misapplied one of his payments, leading to him being falsely reported as late to credit bureaus.
What were the damages in this case?
The damages were non-economic, including the stress and frustration of the dispute process. Mr. Peters was denied credit for a home remodel and an engagement ring for his fiancée due to the false credit report.
What does “consumer protection” mean?
Consumer protection can cover a range of issues, such as false credit reporting, fraudulent bank charges, identity theft, landlord-tenant problems, and bad faith insurance.
What is the Fair Credit Reporting Act?
The Fair Credit Reporting Act (FCRA) is the basis for a cause of action in cases like this. A violation can be either negligent or willful, with willful defined as a “reckless disregard” standard. For more information, visit: Fair Credit Reporting Act | Federal Trade Commission
Are attorneys’ fees recoverable in these types of cases?
Yes, if the plaintiff wins a consumer protection case, they can typically recover reasonable attorneys’ fees.
Is there a cap on damages in these cases?
There is no federal cap on non-economic damages under the federal statutes, though the amount is subject to normal rules regarding excessive damages and remission.
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 consumer protection attorneys are for you.
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.
