Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-caed-2_19-cv-02221/USCOURTS-caed-2_19-cv-02221-0/pdf.json

Nature of Suit Code: 480
Nature of Suit: Consumer Credit
Cause of Action: 15:1681 Fair Credit Reporting Act

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UNITED STATES DISTRICT COURT

FOR THE EASTERN DISTRICT OF CALIFORNIA

JEROME A. CLAY,

Plaintiff,

v.

TRANSWORLD SYSTEMS INC., et al,

Defendants.

No. 2:19-cv-2221 JAM DB PS

ORDER

This matter was referred to the undersigned in accordance with Local Rule 302(c)(21) and 

28 U.S.C. § 636(b)(1). Pending before the court are plaintiff’s complaint, request for leave to 

proceed in forma pauperis pursuant to 28 U.S.C. § 1915, and request for permission for electronic 

filing. (ECF Nos. 1-3.) The complaint concerns alleged violations of defendants’ credit reporting 

responsibilities. 

I. Plaintiff’s Application to Proceed In Forma Pauperis

The court is required to screen complaints brought by parties proceeding in forma 

pauperis. See 28 U.S.C. § 1915(e)(2); see also Lopez v. Smith, 203 F.3d 1122, 1129 (9th Cir. 

2000) (en banc). The undersigned finds that plaintiff’s in forma pauperis application makes the 

showing required by the statute. (ECF No. 2.) However, the court must dismiss an in forma 

pauperis case at any time if the allegation of poverty is found to be untrue or if it is determined 

that the action is frivolous or malicious, fails to state a claim on which relief may be granted, or 

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seeks monetary relief against an immune defendant. See 28 U.S.C. § 1915(e)(2). A complaint is 

legally frivolous when it lacks an arguable basis in law or in fact. Neitzke v. Williams, 490 U.S. 

319, 325 (1989); Franklin v. Murphy, 745 F.2d 1221, 1227-28 (9th Cir. 1984). Under this 

standard, a court must dismiss a complaint as frivolous where it is based on an indisputably 

meritless legal theory or where the factual contentions are clearly baseless. Neitzke, 490 U.S. at 

327; 28 U.S.C. § 1915(e).

To state a claim on which relief may be granted, the plaintiff must allege “enough facts to 

state a claim to relief that is plausible on its face.” Bell Atlantic Corp. v. Twombly, 550 U.S. 544, 

570 (2007). In considering whether a complaint states a cognizable claim, the court accepts as 

true the material allegations in the complaint and construes the allegations in the light most 

favorable to the plaintiff. Hishon v. King & Spalding, 467 U.S. 69, 73 (1984); Hosp. Bldg. Co. v. 

Trustees of Rex Hosp., 425 U.S. 738, 740 (1976); Love v. United States, 915 F.2d 1242, 1245 

(9th Cir. 1989). Pro se pleadings are held to a less stringent standard than those drafted by 

lawyers. Haines v. Kerner, 404 U.S. 519, 520 (1972). However, the court need not accept as true 

conclusory allegations, unreasonable inferences, or unwarranted deductions of fact. Western 

Mining Council v. Watt, 643 F.2d 618, 624 (9th Cir. 1981).

The minimum requirements for a civil complaint in federal court are as follows:

A pleading which sets forth a claim for relief . . . shall contain (1) a 

short and plain statement of the grounds upon which the court’s 

jurisdiction depends . . . , (2) a short and plain statement of the claim 

showing that the pleader is entitled to relief, and (3) a demand for 

judgment for the relief the pleader seeks.

Fed. R. Civ. P. 8(a).

II. Plaintiff’s Complaint

A. Defendant Transworld Systems, Inc.

The complaint alleges that on August 18, 2019, plaintiff “sent correspondence” to three 

credit reporting agencies regarding a medical bill found on plaintiff’s credit report. (Compl. 

(ECF No. 1) at 3.) “One or more of the credit bureaus sent dispute notices to [defendant 

Transworld Systems, Inc.,”] (“Transworld”). (Id.) Defendant Transworld “refused to update and

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correct Plaintiff’s credit profile, despite Plaintiff’s many phone calls and letters” in violation of 

the “Fair Credit Reporting Act,” (“FCRA”). (Id.)

The goal of the FCRA is “to ensure fair and accurate credit reporting, promote efficiency 

in the banking system, and protect consumer privacy.” Safeco Ins. Co. of Am. v. Burr, 551 U.S. 

47, 52 (2007). The 

FCRA imposes a number of procedural requirements on consumer 

reporting agencies to regulate their creation and use of consumer 

reports. The statute gives consumers affected by a violation of such 

requirements a right to sue the responsible party, including the right 

to sue (and to recover statutory damages) for willful violations even 

if the consumer cannot show that the violation caused him to sustain 

any actual damages. 

Robins v. Spokeo, Inc., 867 F.3d 1108, 1110-11 (9th Cir. 2017).

Based on the above allegations, the undersigned finds that the complaint states a claim for 

violation of the FCRA against defendant Transworld. 

B. Defendants Transunion and Experian 

The complaint also names as defendants Transunion LLC, (“Transunion”), and Experian 

Information Solutions Inc., (“Experian”). (Compl. (ECF No. 1) at 1.) As to these defendants, the 

complaint alleges that on December 6, 2016, plaintiff became unable to work and applied for 

disability. (Id. at 4.) Plaintiff’s employer “denied Plaintiff’s benefits beyond March 15, 2017,” 

resulting in “an ongoing lawsuit against [plaintiff’s] employer for non-payment of medical bills.” 

(Id.) 

According to the complaint plaintiff “complied with all requests of” defendants 

Transunion and Experian “to have the erroneous marks removed from his credit report,” but these 

defendants “failed to correct the errors and failed to undertake sufficient investigations upon 

being notified of these errors.” (Id. at 4.) The complaint, however, alleges no facts in support of 

these vague and conclusory allegations. For example, the complaint does not allege what date 

plaintiff contacted either defendant, the nature of the erroneous information, specifics about any 

communication with either defendant, etc. 

Although the Federal Rules of Civil Procedure adopt a flexible pleading policy, a 

complaint must give the defendant fair notice of the plaintiff’s claims and must allege facts that 

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state the elements of each claim plainly and succinctly. Fed. R. Civ. P. 8(a)(2); Jones v. 

Community Redev. Agency, 733 F.2d 646, 649 (9th Cir. 1984). “A pleading that offers ‘labels 

and conclusions’ or ‘a formulaic recitation of the elements of cause of action will not do.’ Nor 

does a complaint suffice if it tenders ‘naked assertions’ devoid of ‘further factual 

enhancements.’” Ashcroft v. Iqbal, 556 U.S.662, 678 (2009) (quoting Twombly, 550 U.S. at 555,

557). A plaintiff must allege with at least some degree of particularity overt acts which the 

defendants engaged in that support the plaintiff’s claims. Jones, 733 F.2d at 649.

In this regard, the complaint fails to state a claim for relief against defendant Transunion 

and defendant Experian.

III. Motion for Electronic Filing

Plaintiff’s motion for electronic filing sets forth a number of items that must be addressed 

before the court can grant permission for electronic filing. For example, the motion asks whether 

plaintiff “is able to comply all the requirements of . . . electronic submission[.]” (Pl.’s Mot. (ECF 

No. 3) at 2.) Despite setting forth the relevant issues, plaintiff does not affirmatively answer any 

of the relevant questions. Instead, they are left blank. 

Accordingly, plaintiff’s motion will be denied without prejudice to renewal to a motion 

that addresses the relevant issues with granting electronic filing. 

CONCLUSION

For the reasons stated above, IT IS HEREBY ORDERED that:

1. Plaintiff’s request for leave to proceed in forma pauperis (ECF No. 2) is granted.

2. Plaintiff may proceed now against defendant Transworld, as set forth below, and

pursue the complaint’s claims against only that defendant. Alternatively, plaintiff may forgo

immediately proceeding against defendant Transworld and attempt to amend the complaint.

3. If plaintiff elects to amend the complaint to address the issued noted above, 

plaintiff has sixty days so to do. Plaintiff is not obligated to amend the complaint. However, if

plaintiff does so, the amended complaint will also be subject to screening.1

1 Plaintiff is reminded that the court cannot refer to a prior pleading in order to make an amended 

complaint complete. Local Rule 220 requires that any amended complaint be complete in itself 

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4. If plaintiff elects to proceed against defendant Transworld, then within thirty days 

plaintiff shall file a short statement stating that plaintiff has elected to proceed against defendant 

Transworld. In this event the court will set this matter for a Status Conference and construe 

plaintiff’s filing as consent to the dismissal of all claims against defendants Transunion and 

Experian without prejudice.2

5. Plaintiff is cautioned that the failure to comply with this order may result in a 

recommendation that this action be dismissed.

Dated: April 10, 2020

DLB:6

DB/orders/orders.pro se/clay2221.part.serve.ord

without reference to prior pleadings. The amended complaint will supersede the original 

complaint. See Loux v. Rhay, 375 F.2d 55, 57 (9th Cir. 1967). Thus, in an amended complaint, 

just as if it were the initial complaint filed in the case, each defendant must be listed in the caption 

and identified in the body of the complaint, and each claim and the involvement of each 

defendant must be sufficiently alleged. Any amended complaint which plaintiff may elect to file 

must also include concise but complete factual allegations describing the conduct and events 

which underlie plaintiff’s claims.

2 Prior to screening plaintiff’s complaint, defendant Transworld voluntarily appeared in this 

action. Accordingly, service on defendant Transworld no longer need be addressed. 

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