Prelminiary Approval Sought for $2.2M Settlement in FCRA Case Regarding Pulling Credit Reports to Collect on Parking Tickets

AllianceOne Management Receivables, Inc. (AllianceOne) agreed to settle a class action Fair Credit Reporting Act (FCRA) lawsuit. The lawsuit, filed against AllianceOne and Experian back in 2015, alleges that AllianceOne pulled plaintiff’s credit report in order to collect on plaintiff’s past due parking tickets, which, the complaint argues, is an impermissible purpose. The complaint also alleged that Experian failed to properly investigate plaintiff’s disputes and furnished plaintiff’s credit report to AllianceOne without a permissible purpose. According to PACER, Experian was dismissed from the case back in October 2016. In entering into the class settlement, AllianceOne denies any wrongdoing or that any violation of the FCRA occurred.

On February 7, an unopposed motion to certify the class and grant preliminary approval of the class settlement agreement was filed and is set to be heard on February 22, 2019. The settlement agreement, listed as Exhibit 2 to the unopposed motion, calls for AllianceOne to pay $5,000 to the class representative plaintiff and $2.2 million for the class settlement. The agreement also limits the class counsel’s fee request, not allowing it to exceed $733,333.33.

The history of this litigation includes an two orders (one on a motion to dismiss, one on a motion for summary judgment) where the court disagreed with the interpretation that pulling credit reports for fully adjudicated debts is a permissible purpose.