1 

UNITED STATES DISTRICT COURT

EASTERN DISTRICT OF TEXAS

SHERMAN DIVISION

Karim Azero, 

Plaintiff,

v.

Pennsylvania Higher Education 

Assistance Agency dba FedLoan 

Servicing; and

Equifax Information Services, LLC, 

Defendants.

§

§ 

§ 

§ 

§ 

§ 

§ 

§ 

§ 

§ 

§ 

§ 

§ 

Case No. 4:23-cv-235

COMPLAINT

INTRODUCTION

1. This is an action brought by an individual consumer for violations of the Fair 

Credit Reporting Act (“FCRA”), 15 U.S.C. § 1681 et seq.

JURISDICTION AND VENUE

2. This Court has jurisdiction over this action pursuant to 15 U.S.C. § 1681p 

and 28 U.S.C. § 1331.

3. Venue is proper in this district pursuant to 28 U.S.C. § 1391(b).

PARTIES

4. Plaintiff is an individual residing in Collin, Texas.

5. Plaintiff is a “consumer” as that term is defined by 15 U.S.C. § 1681a(c).

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 1 of 7 PageID #: 1
2 

6. Defendant Pennsylvania Higher Education Assistance Agency dba FedLoan 

Servicing (“FLS”) is a furnisher of consumer credit information to consumer reporting 

agencies.

7. Defendant Equifax Information Services, LLC is engaged in the business of 

maintaining and reporting consumer credit information for profit.

8. Equifax is a “consumer reporting agency” as that term is defined by 15 

U.S.C. § 1681a(f).

FACTUAL ALLEGATIONS COMMON TO ALL COUNTS

9. Plaintiff had two federal student loans serviced by FLS with disbursement 

dates of August 18, 2017, and August 29, 2016.

10. In or about December 2021, Plaintiff paid off these student loans in full.

11. After the payoff of these accounts, the loans had a zero balance and there was 

nothing further due or owing as of March 2022. 

12. In or around August 2022, Plaintiff checked his credit reports and noticed 

that FLS was reporting inaccurate information regarding the accounts. 

13. Specifically, FLS reported that the accounts were still due and owing in the 

amounts of $5,821, and $7,164.

14. The false information regarding the account appearing on Plaintiff’s 

consumer report harms Plaintiff because it does not accurately depict Plaintiff’s credit 

history and creditworthiness, and overstates Plaintiff’s credit utilization and liability.

15. Equifax published the false information regarding the account to third 

parties.

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 2 of 7 PageID #: 2
3 

WRITTEN DISPUTE

16. On or about February 13, 2023, Plaintiff sent a written letter to Equifax

disputing the inaccurate information regarding the accounts reporting on Plaintiff’s 

consumer report, and requesting a description of the procedure used to determine the 

accuracy and completeness of the information Plaintiff was disputing.

17. Upon information and belief, Equifax forwarded Plaintiff’s dispute to FLS

for reinvestigation.

18. Upon information and belief, FLS received notification of Plaintiff’s dispute 

from Equifax. 

19. FLS failed to conduct a reasonable investigation, failed to contact Plaintiff 

or any third parties, and failed review underlying account information with respect to the 

disputed information and the accuracy of the disputed information.

20. Equifax failed to conduct an investigation, contact Plaintiff, contact third 

parties, or review underlying account information with respect to the disputed information 

and the accuracy of the disputed information.

21. FLS failed to instruct Equifax to correct the false information reporting on 

Plaintiff’s consumer report.

22. Equifax employed an investigation process that was not reasonable and did 

not remove the false information identified in Plaintiff’s dispute.

23. Equifax employed internal processes that were not reasonable and failed to 

ensure the maximum possible accuracy of the information reported on Plaintiff’s consumer 

report.

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 3 of 7 PageID #: 3
4 

24. At no point after receiving the disputes did any Defendant communicate with 

Plaintiff to determine the veracity and extent of Plaintiff’s dispute.

COUNT I – FLS

(Fair Credit Reporting Act Violation – 15 U.S.C. § 1681s-2(b))

25. Plaintiff re-alleges and reaffirms the above paragraphs as though fully set 

forth herein.

26. After receiving Plaintiff’s dispute, FLS failed to correct the false information 

regarding the account reporting on Plaintiff’s consumer reports.

27. FLS violated 15 U.S.C. § 1681s-2(b) by failing to fully and properly 

investigate Plaintiff’s dispute; by failing to review all relevant information regarding 

Plaintiff’s dispute; by failing to accurately respond to credit reporting agencies; by 

verifying false information; and by failing to permanently and lawfully correct its own 

internal records to prevent the re-reporting of false representations to the consumer credit 

reporting agencies, among other unlawful conduct.

28. As a result of this conduct, action, and inaction of FLS, Plaintiff suffered 

damages, and continues to suffer actual damages, including economic loss, damage to 

reputation, emotional distress, and interference with Plaintiff’s normal and usual activities 

for which Plaintiff seeks damages in an amount to be determined by the trier of fact.

29. FLS’s conduct, action, and inaction was willful, rendering it liable to Plaintiff 

for punitive damages pursuant to 15 U.S.C. § 1681n.

30. In the alternative, FLS was negligent, entitling Plaintiff to recover damages 

under 15 U.S.C. § 1681o.

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 4 of 7 PageID #: 4
5 

31. Plaintiff is entitled to recover costs and attorneys’ fees from FLS pursuant to 

15 U.S.C. § 1681n and/or 15 U.S.C. § 1681o.

COUNT II – Equifax

(Fair Credit Reporting Act Violation – 15 U.S.C. § 1681e(b))

32. Plaintiff re-alleges and reaffirms the above paragraphs as though fully set 

forth herein.

33. After receiving Plaintiff’s dispute, Equifax failed to correct the false 

information reporting on Plaintiff’s consumer report.

34. Equifax violated 15 U.S.C. § 1681e(b) by failing to establish or to follow 

reasonable procedures to assure maximum possible accuracy in the preparation of the credit 

reports and credit files it published and maintained concerning Plaintiff.

35. As a result of this conduct, action and inaction of Equifax, Plaintiff suffered 

damage, and continues to suffer actual damages, including economic loss, damage to 

reputation, emotional distress, and interference with Plaintiff’s normal and usual activities 

for which Plaintiff seeks damages in an amount to be determined by the trier of fact.

36. The conduct, action, and inaction of Equifax was willful, rendering it liable 

to Plaintiff for punitive damages pursuant to 15 U.S.C. § 1681n.

37. In the alternative, Equifax was negligent, and Plaintiff is entitled to recover 

damages under 15 U.S.C. § 1681o.

38. Plaintiff is entitled to recover costs and attorneys’ fees from Equifax pursuant 

to 15 U.S.C. § 1681n and/or § 1681o. 

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 5 of 7 PageID #: 5
6 

COUNT III – Equifax

(Fair Credit Reporting Act Violation – 15 U.S.C. § 1681i)

39. Plaintiff re-alleges and reaffirms the above paragraphs as though fully set 

forth herein.

40. After receiving Plaintiff’s dispute, Equifax failed to correct the false 

information reporting on Plaintiff’s consumer report.

41. Equifax violated 15 U.S.C. § 1681i by failing to delete inaccurate 

information in Plaintiff’s credit files after receiving actual notice of such inaccuracies, by 

failing to conduct lawful reinvestigations, by failing to maintain reasonable procedures 

with which to filter and verify disputed information in Plaintiff’s credit files, and by failing 

to provide Plaintiff with a description of its procedures used to determine the accuracy and 

completeness of the disputed information.

42. As a result of this conduct, action and inaction of Equifax, Plaintiff suffered 

damage, and continues to suffer actual damages, including economic loss, damage to 

reputation, emotional distress and interference with Plaintiff’s normal and usual activities 

for which Plaintiff seeks damages in an amount to be determined by the trier of fact.

43. The conduct, action, and inaction of Equifax was willful, rendering it liable 

to Plaintiff for punitive damages pursuant to 15 U.S.C. § 1681n.

44. In the alternative, Equifax was negligent, entitling Plaintiff to recover 

damages under 15 U.S.C. § 1681o.

45. Plaintiff is entitled to recover costs and attorneys’ fees from Equifax pursuant 

to 15 U.S.C. § 1681n and/or § 1681o.

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 6 of 7 PageID #: 6
7 

DEMAND FOR JURY TRIAL

Pursuant to Rule 38 of the Federal Rules of Civil Procedure, Plaintiff demands trial 

by jury in this action of all issues so triable.

PRAYER FOR RELIEF

WHEREFORE, Plaintiff seeks a reasonable and fair judgment against Defendants 

for willful noncompliance of the Fair Credit Reporting Act and seeks remedies as defined 

by 15 U.S.C. § 1681 and demands:

1. Trial by jury.

2. Actual damages to be proven at trial, or statutory damages pursuant to 15 

U.S.C. § 1681n(a)(1)(A), of not less than $100 and not more than $1,000 per violation; 

3. Punitive damages, pursuant 15 U.S.C. § 1681n(a)(2), for each Defendant’s 

willful violation;

4. The costs of instituting this action together with reasonable attorney’s fees 

incurred by Plaintiff pursuant to 15 U.S.C. § 1681n(a)(3); and

5. Any further legal and equitable relief as the court may deem just and proper 

in the circumstances.

Dated:March 22, 2023

/s/ Joseph Panvini

Joseph Panvini

McCarthy Law, PLC

4250 North Drinkwater Blvd, Suite 320

Scottsdale, AZ 85251

Telephone: (602) 612-5016

Fax: (602) 218-4447

joe.panvini@mccarthylawyer.com

Attorney for Plaintiff

Case 4:23-cv-00235-ALM Document 1 Filed 03/22/23 Page 7 of 7 PageID #: 7