UNITED STATES BANKRUPTCY COURT

EASTERN DISTRICT OF NEW YORK

In re Nigel Anthony Russell
an
Diane Russell!

De"tors#
Cha$ter % Case No# &'()*+,- .e.
Nigel Anthony Russell!
Plainti//!
( against (
Chase Ban0 USA! NA!
De/enant#
A1# Pro# No#
COMPLAINT SEEKING DAMAGES IN CORE ADVERSARY PROCEEDING
INTRODUCTION
)# This is an a.tion /or a.tual a2ages! statutory a2ages! $uniti1e a2ages! an legal /ees an e3$enses
/ile "y the Plainti// /or the De/enant4s i2$ro$er an illegal a.tions an .onu.t 5hi.h are not in .o2$lian.e
5ith an in /a.t are in 1iolation o/ the Dis.harge In6un.tion! )) USC 7 8'*#
JURISDICTION AND VENUE
'# 9urisi.tion is .on/erre on this Court $ursuant to Se.tion ),,* o/ Title '- o/ the Unite States Coe in
that this $ro.eeing arises in an is relate to the a"o1e(.a$tione Cha$ter % .ase uner Title )) an .on.erns
$ro$erty o/ the De"tors in that .ase#
,# :enue lies in this Distri.t $ursuant to Se.tions ),;)<"= an )*&; o/ Title '- o/ the Unite States Coe#
*# This 2atter is a .ore $ro.eeing# To the e3tent o/ the non("an0ru$t.y .lai2s /or relie/! this 2atter is a
non(.ore $ro.eeing an the Plainti// .onsents to the entry o/ a /inal orer in this .ase "y the Ban0ru$t.y 9uge#
)
PARTIES
8# The Plainti// is a natural $erson resiing in the City o/ Broo0lyn! County o/ Kings! State o/ Ne5 Yor0!
an is also a e"tor uner the $ro1isions o/ Cha$ter % o/ Title )) o/ the Unite States Coe#
+# The Plainti// is a >.onsu2er? an >e"tor? as those ter2s are e/ine uner the a$$li.a"le Feeral an
State statutes#
%# The De/enant! Chase Ban0 USA! NA is a .or$oration that 2aintains a $la.e o/ "usiness at '&& White
Clay Center Dr#! Ne5ar0! DE );%))(8*++# The De/enant transa.ts "usiness 5ithin the State o/ Ne5 Yor0 an
has signi/i.ant an su"stantial .onta.ts 5ith this State#
-# De/enant is an insure e$ository institution <as e/ine in se.tion , o/ the Feeral De$osit Insuran.e
A.t= an! as su.h! 2ay "e ser1e "y .erti/ie 2ail aresse to an o//i.er o/ the institution#
;# U$on in/or2ation an "elie/! De/enant is a /urnisher o/ in/or2ation to E3$erian an TransUnion!
>Consu2er re$orting agen.ies that .o2$ile an 2aintain /iles on .onsu2ers on a nation5ie "asis? as e/ine
"y )8 U#S#C# 7)+-)a<$=#
FACTUAL ALLEGATIONS (PRE-DISCHARGE)
)&# Prior to the .o22en.e2ent o/ the Cha$ter % .ase! the Plainti// in.urre a .reit .ar e"t 5ith a..ount
nu2"er 8'+&,)&,*&&&8%-) to Chase Ban0 USA! NA <hereina/ter >De/enant?=#
))# Plainti// /ile a $etition in "an0ru$t.y uner Cha$ter % o/ the U#S# Ban0ru$t.y Coe on A$ril )'! '&&'!
an sai .ase 5as assigne to 9uge Carla E# Craig#
)'# On A$ril )+! '&&'! De/enant o"taine a 6ug2ent 5ith the Ci1il Court o/ the City o/ Ne5 Yor0!
County o/ Kings 5ith regars to the a"o1e re/eren.e a..ount#
),# De/enant re.ei1e a.tual noti.e o/ the .o22en.e2ent o/ the Plainti//4s Cha$ter % .ase "y 1irtue o/
ser1i.e o/ the Noti.e o/ Cha$ter % Ban0ru$t.y Case! @eeting o/ Creitors! A Dealines#
)*# On or a"out @ay '&! '&&'! 9P@organChase Ban0 /or5are a Sti$ulation :a.ating 9ug2ent 5ith
regars to the a"o1e re/eren.e a..ount to the unersigne! 5ho signe an returne a .o$y o/ sa2e to
9P@organChase Ban0#
)8# On 9une ')! '&&'! the unersigne re.ei1e a /ully e3e.ute .o$y o/ the Sti$ulation :a.ating 9ug2ent
as re/eren.e in E3hi"it ) atta.he hereto#
)+# Plainti//4s estate 5as /ully a2inistere! Plainti// re.ei1e a is.harge on August ';! '&&' an the .ase
5as .lose#
)%# De/enant re.ei1e a.tual noti.e o/ the Plainti//4s is.harge "y 1irtue o/ ser1i.e o/ the Dis.harge Orer#
'
)-# At no ti2e uring the $enen.y o/ the 5ithin Cha$ter % .ase i Plainti// enter into a rea//ir2ation
agree2ent 5ith De/enant#
);# At no ti2e uring the $enen.y o/ the 5ithin Cha$ter % .ase 5as the Plainti//4s $re($etition e"t to
De/enant eter2ine to "e non(is.hargea"le#
'&# De/enant ha a.tual 0no5lege o/ the /a.t that Plainti//4s $re($etition o"ligations to De/enant ha
"een is.harge "y the entry o/ the Dis.harge Orer#
FACTUAL ALLEGATIONS (POST-DISCHARGE)
On A$ril ,! '&&+! Plainti// re.ei1e a .o$y o/ his .reit re$ort /ro2 E3$erian <hereina/ter >E3$erian
Re$ort?=# Sai re$ort re/le.ts the /a.t that De/enant .ontinues to re$ort a e"t o5e to the2 on the Plainti//4s
$u"li. .reit /iles as >Chase?# This re$ort states that the is.harge e"t to De/enant has a re.ent "alan.e o/
B;!''; as o/ @ar.h '&&'C an that the e"t 5as originate in No1e2"er );;+# The e"t is es.ri"e as
Re1ol1ing "earing a $artial a..ount nu2"er 8'+&,)&,*&&&D# The re$ort also ini.ates a status o/ >A..ount
.harge o//EPast ue )8& ays# B;!''; 5ritten o//# B)!**) $ast ue as o/ @ar '&&'?# A .o$y o/ the rele1ant
$ages o/ the E3$erian Re$ort is anne3e hereto as E3hi"it '#
The E3$erian Re$ort! in aition to the /oregoing! ini.ates that De/enant o"taine a .o$y o/ the De"tor4s
E3$erian .reit re$ort on 9une )+! '&&8 5ithout ha1ing a $er2issi"le $ur$ose#
On A$ril ,! '&&+! Plainti// also re.ei1e a .o$y o/ his .reit re$ort /ro2 EFui/a3 <hereina/ter >EFui/a3
Re$ort?=# Sai re$ort re/le.ts the /a.t that De/enant .ontinues to re$ort a e"t o5e to the2 on the Plainti//4s
$u"li. .reit /iles as >Chase NA?# This re$ort states that the is.harge e"t to De/enant has a re.ent "alan.e
o/ B;!''; as o/ @ar.h '&&'C an that the e"t 5as originate in No1e2"er );;+# The e"t is es.ri"e as
Re1ol1ing "earing a $artial a..ount nu2"er 8'+&,)&,*&&&3333# The re$ort also ini.ates a status o/ >Charge
O//?# A .o$y o/ the rele1ant $ages o/ the EFui/a3 Re$ort is anne3e hereto as E3hi"it ,#
')# On A$ril '&! '&&+! Plainti//! "y his attorney! sent .orres$onen.e to De/enant /urther a1ising
De/enant that the De/enant 5as .ontinuing to re$ort the traeline /or the is.harge e"t as $ast ue an
o5ing on the Plainti//4s .reit re$orts <hereina/ter >A$ril '&! '&&+ Corres$onen.e?=# A .o$y o/ the A$ril '&!
'&&+ Corres$onen.e is anne3e hereto as E3hi"it *#
''#
,
',# The A$ril '&! '&&+ Corres$onen.e state in $art as /ollo5sG
Please .onsier this letter as a e2an that you i22eiately u$ate the in/or2ation "eing
/urnishe to EFui/a3! E3$erian an TransUnion an .orre.t your re$orting o/ this trae line
5ithin t5enty <'&= .alenar ays o/ your re.ei$t o/ this letter# Sin.e this e"t has "een
is.harge in Ban0ru$t.y! you are $er2itte only to re$ort a >&? "alan.e to the .onsu2er
re$orting agen.ies at this ti2e# Please also noti/y this o//i.e in 5riting 5hen you sen the
Uni/or2 Data Re$ort noti.e to the .reit re$orting agen.ies reFuesting the .orre.tion o/ this
i2$ro$er re$orting entry#
'*# As o/ the ate hereo/! neither Plainti// nor .ounsel /or Plainti// ha1e re.ei1e a res$onse to the A$ril '&!
'&&+ Corres$onen.e#
'8# Plainti// on @ay ,)! '&&+! in an e//ort to ensure that his .reit re$orts 5ere $ro$erly u$ate a/ter his
is.harge in "an0ru$t.y! reFueste o/ E3$erian! EFui/a3 an TransUnion that they rein1estigate all traelines o/
all .reitors liste on his "an0ru$t.y $ro.eeing! in.luing the traeline o/ De/enant# Co$ies o/ Plainti//4s
reFuests /or rein1estigation are anne3e hereto as E3hi"it 8
'+# On in/or2ation an "elie/! De/enant re.ei1e a reFuest /or rein1estigation reFuesting that they 1eri/y
that the e"t 5as is.harge in Ban0ru$t.y#
'%# On in/or2ation an "elie/! De/enant res$one to the reFuest /or 1eri/i.ation "y stating that the e"t
5as still ue an o5ing! 1eri/ying that in/or2ation to E3$erian an TransUnion#
'-# On 9une )*! '&&+! Plainti// re.ei1e a .o$y o/ his .reit re$ort /ro2 TransUnion <hereina/ter
>TransUnion Re$ort?=# Sai re$ort re/le.ts the /a.t that De/enant .ontinues to re$ort a e"t o5e to the2 on
the Plainti//4s $u"li. .reit /iles as >Chase NA?# This re$ort states that the is.harge e"t to De/enant has a
"alan.e o/ B;!''; as o/ @ar.h '&&'C an that the e"t 5as originate in No1e2"er );;+# The e"t is es.ri"e
as a Re1ol1ing A..ount "earing a..ount nu2"er 8'+&,)&,*&&&8%-)# The re$ort /urther ini.ates a status o/
>Dis.harge O// As Ba De"t?# A .o$y o/ the rele1ant $ages o/ the TransUnion Re$ort is anne3e hereto as
E3hi"it +#
';# E3$erian! EFui/a3 an TransUnion 2aintain .reit /iles in the orinary .ourse o/ "usiness#
,&# E3$erian! EFui/a3 an TransUnion re$ort in/or2ation /urnishe "y .reitors su.h as De/enant#
,)# The Plainti// a1ers that at all ti2es rele1ant to the allegations hereinG
A# De/enant has su"stantially /rustrate the is.harge orer entere in this .ase an their .onu.t
.onstitutes gross 1iolations o/ the is.harge in6un.tion as $ro1ie "y Se.tion 8'* o/ Title )) o/
the Unite States Coe an /urther ha1e .ause the Plainti// un5arrante an unne.essary ti2e!
e//ort an e3$ense in see0ing to en/or.e rights guarantee "y the Ban0ru$t.y CoeC
B# De/enant 0ne5 an in /a.t ha a.tual 0no5lege that the Plainti// 5as $re1iously in1ol1e in
"an0ru$t.y an 5as there/ore $rote.te /ro2 any ire.t or inire.t .olle.tion a.ts 5hatsoe1er
"y 1irtue o/ the Dis.harge In6un.tion $ro1ie /or "y Se.tion 8'* o/ Title )) o/ the Unite
States Coe an not5ithstaning su.h 0no5lege 5ill/ully /aile to 5ithra5 their erroneous
.reit in/or2ation 5ithin the statutory ti2e allo5e "y the Fair Creit Re$orting A.t <)8 USC
7)+-)s=C
*
C# De/enant at all ti2es rele1ant to the allegations in this .o2$laint 0ne5 that the Plainti// 5as
re$resente "y an attorney in .onne.tion 5ith his "an0ru$t.y /iling an that the unerlying e"t
o5e "y the Plainti// 5as in /a.t a H.onsu2er e"tH as that ter2 is e/ine "y a$$li.a"le Feeral
an State statutesC
D# De/enant intentionally /aile to .orre.t the erroneous .reit in/or2ation in an e//ort to
inire.tly .olle.t a is.harge e"t /ro2 the Plainti// in ire.t 1iolation o/ the s$e.i/i.
$ro1isions o/ Se.tion )+-)s o/ Title )8 o/ the Unite States Coe! .o22only 0no5n as the Fair
Creit Re$orting A.tC
,'# Plainti// alleges that the 1iolations o/ the non("an0ru$t.y la5s 6usti/y an enhan.e the ne.essity /or the
a5ar o/ su"stantial an signi/i.ant $uniti1e a2ages in this .ase#
,,# Plainti// is in/or2e an "elie1es an there/ore alleges that as a result o/ these allegations he is entitle
to the re.o1ery o/ a.tual a2ages! in.luing e2otional istress! $uniti1e a2ages! legal /ees an e3$enses#
,*# Plainti// alleges that he has engage in nu2erous 2eetings 5ith his attorney an 2e2"ers o/ his sta//
a"out this 2atter#
,8# The re.ei$t o/ the orer o/ is.harge .onstitute the re.ei$t o/ a is$ute 5ith regar to the .o2$leteness
an a..ura.y o/ the $re("an0ru$t.y in/or2ation in Plainti//4s .onsu2er .reit re$orts as $ro1ie /or "y )8
U#S#C# 7 )+-)i<a=<'=#
,+# As su.h! the re.ei$t o/ the Dis.harge Orer triggere De/enant4s a//ir2ati1e uty to .onu.t a $ro$er
rein1estigation an to .orre.t all erroneous .onsu2er .reit in/or2ation#
,%# De/enant 5ill/ully! intentionally an 5ithout any 6ust .ause /aile to .o2$ly 5ith this uty#
,-# De/enant 5as a5are that it4s re$orting an a.ti1ities 5oul <an i= a2age $lainti// an $lainti//4s
a"ility to en6oy li/e an utiliIe the .reit rating an re$utation an $ro$erty rights he se.ure "y honoring his
o"ligations to his .reitors#
,;# Uner their su"s.ri"er .ontra.t! De/enant o5e a nu2"er o/ uties! in.luing the uty to re$ort
truth/ul an a..urate in/or2ation a"out its .usto2ers! in.luing $lainti//#
*&# On nu2erous o..asions! De/enant re$orte! 1ia its .ontra.tual an legal agents! to the .onsu2er
re$orting agen.ies! /alse an ina..urate in/or2ation a"out the $lainti//! as es.ri"e 2ore /ully herein#
*)# De/enant 5ill/ully /aile to 5ithra5 its erroneous .reit in/or2ation 5ithin the statutory ti2e allo5e
"y )8 U#S#C# 7 )+-)s('<a=<)=<A==#
*'# De/enant 5as reFuire uner )8 U#S#C# 7 )+-)s('<"=! to res$on to the reFuest /or rein1estigation
initiate "y Plainti// "y .o2$leting a iligent inFuiry into the /a.ts unerlying the traeline an $ro1iing
a..urate in/or2ation to the .onsu2er re$orting agen.ies regaring that traeline#
8
*,# De/enant4s rein1estigation in.lue the /ollo5ing uties an 5as reFuire to 2eet the /ollo5ing
stanarsG
A# To "e .onu.te in goo /aithC
B# To "e .onu.te in su.h a /ashion as to assure the 2a3i2u2 $ossi"le a..ura.y o/ Plainti//s
.reit re$ortC
C# To "e .onu.te in su.h a 5ay as to not 1iolate any o/ the general $rereFuisites /or FurnisherJ
.onu.t uner )8 U#S#C# 7 )+-)s('<a= or any other statutory reFuire2ent /or Furnisher o/ .reit
in/or2ationC
D# To "e .onu.te in a reasona"le /ashionC
E# To "e .onu.te "ase on in/or2ation reasona"ly a1aila"le to Furnisher#
**# De/enant has li0e5ise 1iolate the Fair Creit Re$orting A.t! )8 U#S#C#7)+-)s('! in e1ery res$e.t!
in.luing "y its /ailing to res$on to rein1estigation reFuests an "y /urther su$$lying ina..urate an /alse
in/or2ation#
*8# De/enant /aile to .onu.t a reasona"le rein1estigation o/ their /alse .reit re$orting 5hen noti/ie o/
$lainti//4s is$utes#
*+# De/enant /aile to $ro$erly .orre.t their /alse re$orting an /aile to noti/y the .onsu2er re$orting
agen.y! to 5hi.h they su"s.ri"e! o/ the nee to .orre.t the /alse re$orting#
*%# De/enant /aile to utiliIe $ro$er 2ethos to .orre.t its /alse .reit re$orting#
*-# De/enant /aile to utiliIe $ro$er .reit re$orting /or2atting an 2ethoology#
*;# Follo5ing the rein1estigation as allege a"o1e! De/enant re$orte the erroneous .reit in/or2ation an
.ons.iously a1oie 0no5ing that the .reit in/or2ation 5as ina..urate! in 1iolation o/ the FCRA! )8 U#S#C! 7
)+-)s('<"= an the uties i2$lie to that rein1estigation uner )8 U#S#C# 7 )+-)s('<a=<l=<A=#
8&# Follo5ing the rein1estigation an is$at.h o/ noti.e to De/enant! De/enant /aile to noti/y E3$erian
an TransUnion that the e"t 5as is$ute! in 1iolation o/ the FCRA! )8 U#S#C! 7 )+-)s('<"= an the uties
i2$lie to that rein1estigation uner )8 U#S#C# ; )+-)s('<a=<,=#
8)# Plainti// alleges that De/enant /aile to .ause the .onsu2er .reit re$orts o/ the Plainti// to "e a2ene
so as to list all e"ts o5e to De/enant an is.harge in "an0ru$t.y has ha1ing a >&? .reit "alan.e#
8'# Plainti// alleges that the De/enant 5as reFuire uner the O//i.ial Sta// Co22entary to 7 +&%! 5hi.h
states that a >.onsu2er re$ort 2ay in.lue an a..ount that 5as is.harge in "an0ru$t.y <as 5ell as the
"an0ru$t.y itsel/=! as long as it re$orts a Iero "alan.e ue to re/le.t the /a.t that the .onsu2er is no longer lia"le
/or the is.harge e"t!? reFuire De/enant to .ause the .onsu2er .reit re$orts o/ the Plainti// to "e a2ene
so as to list all e"ts o5e to De/enant an is.harge in "an0ru$t.y as ha1ing a >&? .reit "alan.e#
+
8,# Plainti// alleges that De/enant intentionally /aile to .ause the .onsu2er .reit re$orts o/ the Plainti//
to "e a2ene so as to list all e"ts o5e to De/enant an is.harge in "an0ru$t.y as ha1ing a >&? .reit
"alan.e#
8*# Plainti// alleges that .reit re$orting is an e//ort to .olle.t a e"t# See, Riviera v. Bank One! +*8 F#R#D#
'+-! '%' <D#PR );;'=# <>Creit re$orting is a 2etho to 5ren.h .o2$lian.e 5ith ter2s o/ the agree2ent? an
>Creit re$orting is a 2etho to en/or.e $ay2ent /ro2 the e"tor#?=#
88#
8+# Plainti// alleges that the De/enant4s .ontinue /urnishing o/ negati1e a..ount in/or2ation to .reit
re$orting agen.ies is o/ the ty$e o/ .reitor a.tion intene to "e $rohi"ite "y the U#S# Ban0ru$t.y Coe# In re
Sommersdorf! ),; B#R# %&& <Ban0r# S#D# Ohio );;)=#
8%#
8-# De/enant 0ne5 an in /a.t ha a.tual 0no5lege that the Plainti// 5as $re1iously in1ol1e in
"an0ru$t.y an 5as there/ore $rote.te /ro2 any ire.t or inire.t .olle.tion a.ts 5hatsoe1er "y 1irtue o/ the
Dis.harge In6un.tion $ro1ie /or "y )) U#S#C# 7 8'*#
8;# De/enant has 5ill/ully 1iolate the is.harge orer "y atte2$ting to .olle.t a e"t that 5as is.harge
in Ban0ru$t.y! in 1iolation o/ )) U#S#C# 78'*#
+&# De/enant intentionally /aile to .orre.t the erroneous .reit in/or2ation in an e//ort to inire.tly
.olle.t a is.harge e"t /ro2 the Plainti// in ire.t 1iolation o/ the s$e.i/i. $ro1isions o/ )) U#S#C# 7 8'* an
)8 U#S#C# 7 )+-) et seq#
PLAINTIFFS FIRST CLAIM FOR RELIEF
+)# Plainti// restates an realleges herein all $re1ious $aragra$hs#
+'# The Plainti// a1ers that as a result o/ the unla5/ul a.tions o/ the De/enant as allege herein he has "een
reFuire to e1ote .ountless an unne.essary hours to see0 to .orre.t the erroneous in/or2ation on his .onsu2er
.reit re$ort#
+,# The Plainti// also a1ers that he has .onstantly 5orrie a"out this situation an has /eare that the
De/enant ha so2e i2$ro$er 2oti1e /or the i2$ro$er .reit re$orting#
+*# The Plainti// alleges that the .onu.t o/ the De/enant in this .ase has su"stantially /rustrate the
is.harge orer entere in this .ase an has .ause the Plainti// un5arrante an unne.essary ti2e! e//ort an
e3$ense in see0ing to en/or.e rights guarantee "y the Ban0ru$t.y Coe#
+8# The Plainti// also alleges that in orer to .arry out the $ro1ision o/ the Coe an to 2aintain its integrity
this Court 2ust i2$ose a.tual a2ages! $uniti1e a2ages an legal /ees against the De/enant $ursuant to the
$ro1isions o/ Se.tion )&8 o/ the Coe#
SECOND CLAIM FOR RELIEF AGAINST DEFENDANT
%
++# Plainti// restates an realleges herein all $re1ious $aragra$hs#
+%# De/enant! "y 2a0ing a /alse state2ent regaring the /inan.ial $osition o/ the Plainti//! has in6ure
Plainti//4s re$utation#
+-# The /alse state2ent 2ae "y De/enant regaring the Plainti// has e3$ose Plainti// to $u"li. hatre!
sha2e! o"loFuy! .ontu2ely! oiu2! .onte2$t! rii.ule! a1ersion! ostra.is2! egraation! or isgra.e! .on/ien.e
an /rienly inter.ourse in so.iety#
+;# Plainti// is entitle to a.tual an $uniti1e a2ages /or the a.t o/ De/a2ation#
WHEREFORE, the Plainti// ha1ing set /orth his .lai2s /or relie/ against the De/enant res$e.t/ully $rays o/
the Court as /ollo5sG
<a= That the Plainti// ha1e an re.o1er a.tual a2ages against the De/enantC
<"= That the Plainti// ha1e an re.o1er against the De/enant all reasona"le legal /ees an e3$enses
in.urre "y his attorneyC
<.= That the /ining that the De/enant 5ill/ully! intentionally an re.0lessly 1iolate the
$ro1isions o/ the Fair Creit Re$orting A.t! though not allege as a .lai2 herein! $ro1ie grouns /or
the re.o1ery o/ $uniti1e a2ages against the De/enantC an
<= That the Plainti// ha1e su.h other an /urther relie/ as the Court 2ay ee2 6ust an $ro$er#
DateG No1e2"er )8! '&&+
Ne5 Yor0! NY
/s/ Jay S. Fleischman
9ay S# Fleis.h2an <9F 8*,,=
Attorney /or Plainti//
Fleis.h2anKa5! P#C#
)8 @aien Kane! Suite '&&&
Ne5 Yor0! NY )&&,-
')'#%-8#)),+
6ayLrl.ny#.o2 <not /or ser1i.e=
-