No. 04 C 4674 Page 3

agency. A company that furnishes information to a consumer reporting agency is not liable
under the Fair Credit Reporting Act, and thus, plaintiff fails to state a claim against Asset

Acceptance under this statute. See Rush y. Macy’s New York, Inc., 775 F.2d 1554, 1557 (11"

Cir. 1985); Batchelor y. First National Bank of Blue Island, 1993 WL 22859 at *3 (N.D. III.
1993).
CONCLUSION
For the foregoing reasons, plaintiff’s petition to proceed in forma pauperis is granted as
to her Fair Debt Collection Practices Act claims and dismissed as to her Fair Credit Reporting

Act claims.

JAMES B. MORAN
énior Judge, U. S. District Court

Se 21,2004.



‘Minute Orde} Form (06/97)

United States District Court, Northern District of Illinois

Name of Assigned Judge
or Magistrate Judge

James B, Moran

Sitting Judge if Other
than Assigned Judge

CASE NUMBER 04 C 4674 DATE 7/21/2004

CASE SAMANTHA PATTERSON vs. ASSET ACCEPTANCE CORP.

TITLE

[In the following box (a) indicate the party filing the motion, e.g., plaintiff, defendant, 3rd party plaintiff, and (b) state briefly the nature
MOTION: of the motion being presented.]
MEMORANDUM OPINION AND ORDER

DOCKET ENTRY:
qd) Qo Filed motion of [ use listing in “Motion” box above.]

(2) Oo Brief in support of motion due

(3) Qo Answer brief to motion due___. Reply to answer brief due___

(4) o Ruling/Hearingon__—__esetfor__—_at

(5) oO Status hearing[held/continued to] [set for/re-set for] on setfor at

(6) a Pretrial conference[held/continued to] [set for/re-set for]on__——ssetfor_——at_—

(7) im) Trial{set for/re-set for]on___at

@ oO [Bench/Jury trial] [Hearing] held/continued to____at

(9) o This case is dismissed [with/without] prejudice and without costs[by/agreement/pursuant to]

OOFRCP4(m) ClLocal Rule 41.1 CFRCP4i(a)(1) CIFRCP41(a)(2).

ao) =f [Other docket entry] | Enter Memorandum Opinion And Order. Plaintiff's petition to proceed in
forma pauperis is granted as to her Fair Debt Collection Practices Act claims and dismissed as to her Fair
Credit Reporting Act Claims. Status hearing is set for 8/26/04 at 9:15 a.m.

a) ff [For further detail see order attached to the original minute order.] a fi

No notices required, advised in open court.

No notices required.

Notices mailed by judge's staff.

Notified counsel by telephone.

YS | Docketing to mail notices,

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Copy to judge/magistrate judge. My
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IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ILLINOIS

EASTERN DIVISION
SAMANTHA PATTERSON, )
Plaintiff, )
vs. , No. 04 C 4674
ASSET ACCEPTANCE CORP., } o
Defendant. ) pockel tb
JUL 2? 2004

MEMORANDUM OPINION AND ORDER

Plaintiff Samantha Patterson brought this pro se action against Asset Acceptance
Corporation (Asset Acceptance) for violations of the Fair Debt Collection Practices Act, 15
U.S.C. § 1692 et seg., and the Fair Credit Reporting Act, 15 U.S.C. § 1681 ef seg. Along with
her complaint plaintiff filed a petition to proceed in forma pauperis.

Pursuant to 28 U.S.C. § 1915(a) we may authorize plaintiff to proceed in forma pauperis
if she demonstrates an inability to pay the required costs and fees. In her financial affidavit
plaintiff states that she is currently unemployed, has no assets, and receives only $275 a month
to support herself and her two children. Plaintiff has evidenced her financial need.

Our inquiry does not end there, however. As part of the initial review of a petition to
proceed in forma pauperis we analyze the claims and dismiss the complaint if we determine that
the action is frivolous or malicious, it fails to state a claim upon which relief may be granted,
or secks damages from a defendant who is immune from such relief. 28 U.S.C. §
1915(e)(2)(B)(i)-(iii); Alston v Debruyn, 13 F.3d 1036, 1039 (7" Cir. 1994). For purposes of this
decision we take petitioner’s allegations as true. See Zimmerman v. Tribble, 226 F.3d 568, 571

(7" Cir, 2000).



No. 04 C 4674 Page 2

Plaintiff alleges that Asset Acceptance informed credit reporting agencies that she owed
the collection company for debts related to two accounts, SBCILLIN1484 and
SBCINDIA14079620 (presumably two SBC accounts in Illinois and Indiana), without verifying
the accuracy of the underlying debts. After learning of these blemishes on her credit reports,
plaintiff sent Asset Acceptance a letter dated May 19, 2004, disputing the debts and requesting
verification of the overdue accounts. Plaintiff claims that she has not received any verification,
and presumably Asset Acceptance has not had the credit reporting agencies remove the
information from plaintiff’s credit report.

The Fair Debt Collection Practices Act seeks to protect consumers from abusive means
of collecting debts. 15 U.S.C. § 1692(e). Under § 1692g(b), if a consumer disputes a debt in
writing within thirty days of being informed of the debt, a debt collector must cease all efforts
of collection until the collector receives verification of the debt, a copy of the judgment, or the
name and address of the original creditor, and mails that information to the consumer. Debt
collectors are liable to consumers for violations of this statute for any actual damages and other
damages up to $1,000. 15 U.S.C. § 1692k. Given the allegation in plaintiffs pro se complaint
we do not find that her action is frivolous or malicious, or fails to state a claim under this act.

Plaintiff has not stated a claim under the Fair Credit Reporting Act, however. The
purpose of the Fair Credit Reporting Act is to require that “consumer reporting agencies adopt
reasonable procedures” to provide the credit industry with information, while treating
consumers fairly and equitably. 15 U.S.C. § 1681(b). A consumer reporting agency is any
person or entity that assembles and evaluates credit information on consumers to provide to
third parties. 15 U.S.C. § 1681a(f). Asset Acceptance is not alleged to be a consumer reporting

agency. It is a debt collection company that has provided information to a consumer reporting