Credit Reporting Firms Cleared on Fraud Claims

(CN) - Credit reporting agencies did not commit fraud when they released trigger leads to mortgage companies' competitors, the 2nd Circuit ruled.

Premium Mortgage Corp. filed a class action suit against Equifax, Trans Union and Experian Information Solutions on behalf of itself and other mortgage companies.

The mortgage companies accused the credit agencies of fraud and misappropriation of trade secrets for releasing the trigger leads to competing mortgage companies when the plaintiffs requested credit reports of loan applicants.

The district court ruled in favor of the credit agencies, and the judges of the New York City-based federal appeals court agreed.

"Plaintiff has not identified the legal basis for the credit bureau defendants' alleged "duty and obligation to maintain the confidentiality" of trigger leads, the judges wrote.

Also, the judges dismissed the plaintiffs' fraud complaint as inadequately pleaded, characterizing their complaints as "unadorned, the defendants unlawfully harmed me accusations."

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