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Rochelle N. Belnap 

The Arizona Credit Law Group, P.L.L.C.

700 E. Baseline Rd. Ste. C-3

Tempe, AZ 85283

State Bar No. 029172

Fax: (480) 907-7126

rochelle@azclg.com

Tel: (480) 907-6088

Attorney for Plaintiffs 

IN THE UNITED STATES DISTRICT COURT 

FOR THE DISTRICT OF ARIZONA

Michael G. Liddicoat and Sally L. 

Liddicoat, husband and wife,

 Plaintiffs,

v.

Shellpoint Mortgage Servicing, a 

subsidiary of Shellpoint Partners,

L.L.C., a Delaware limited liability 

company; New Penn Financial, L.L.C. 

dba Shellpoint Mortgage Servicing, 

L.L.C., Equifax Information Services, 

L.L.C., a Georgia limited liability 

company; Experian Information 

Solutions, Inc., an Ohio corporation; & 

Trans Union, L.L.C., a Delaware 

limited liability company.

 

 Defendants.

No: 2:15-cv-02262-SRB

REVISED FIRST AMENDED 

COMPLAINT

COMES NOW the Plaintiffs, Michael and Sally Liddicoat, by and through 

undersigned counsel, for its claims against the Defendants, allege as follows: 

THE PARTIES 

1. Plaintiffs, Michael G. Liddicoat and Sally L. Liddicoat, husband and wife, are

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First Amended Complaint- 2

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residents of the State of Arizona and Michael G. Liddicoat is the former owner of 

property located at 9452 West Alex Avenue, Peoria, Arizona 85382 who held title as 

the sole and separate property of Michael G. Liddicoat with a disclaimer deed filed 

by Sally L. Liddicoat (herein the “Peoria Property”). 

2. Plaintiffs, Michael G. Liddicoat and Sally L. Liddicoat, executed a note on the 

Peoria Property to JP Morgan Chase Bank, N.A. for a $49,000 line of credit dated 

August 2007; the note was subsequently transferred to Resurgent Mortgage 

Servicing after the foreclosure, who then transferred servicing to Shellpoint 

Mortgage Servicing in March 2014. 

3. Defendant, Shellpoint Mortgage Servicing, a subsidiary of Shellpoint Partners, 

L.L.C. New Penn Financial, L.L.C. dba Shellpoint Mortgage Servicing, L.L.C.,

herein “Shellpoint,” upon information and belief is a national mortgage servicer and

serviced the mortgage for the Plaintiffs’ Peoria Property; however, Shellpoint 

Partners, L.L.C.’s subsidiary, New Penn Financial, L.L.C., is authorized to do 

business in Maricopa County, Arizona., and Shellpoint Mortgage Servicing is a 

registered trade name in the state of Arizona.

4. Defendants, Equifax Information Services, L.L.C., herein “Equifax,” Experian 

Information Solutions, Inc., herein “Experian,” and Trans Union, L.L.C., herein 

“Transunion,” upon information and belief, are credit reporting agencies as defined 

by the Fair Credit Reporting Act § 1681a, and furnish consumer credit reports, 

including credit information of the Plaintiffs. 

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First Amended Complaint- 3

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PRELIMINARY STATEMENT 

5. This is an action for actual, statutory, and punitive damages, costs and attorney’s 

fees, including recovery for emotional distress, and humiliation, for False Reporting

and Unfair and Deceptive Collection Practices brought pursuant to 15 U.S.C. § 1681 

et seq. (The Federal Fair Credit Reporting Act), and 15 U.S.C. §§ 1692-1692p (The 

Fair Debt Collection Practices Act).

6. In 2014, Plaintiffs obtained a copy of their credit reports and discovered that 

Defendant Shellpoint was reporting inaccurate information regarding Mr. 

Liddicoat’s former second mortgage on both Plaintiffs’ credit reports; specifically

Shellpoint reported that Plaintiffs owed an unpaid balance of $55,830, an unpaid 

past due balance of $55,335, reported the status of the account as an unpaid “charge 

off,” and reported Plaintiffs as late every month since June 2009. These errors are 

herein referred to as the “Shellpoint Misrepresentation.” Exhibit A.

7. Chase was the mortgage servicer for the first and second mortgage on the 

property, and in May 2015, nearly six years after the foreclosure, Chase 

reported the first and second mortgage as closed accounts with a $0 balance 

and reported the date of last activity, or the date of last payment, as August 

2008. Exhibit A. 

8. Despite Chase having sold the loan, Chase continued to report the second 

mortgage account to the Defendant credit reporting agencies (“CRAs”) as a 

closed charge off account with a $0 balance. Exhibit A.

9. According to Shellpoint, the loan was sold to LVNV Funding, L.L.C., and the 

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loan was serviced by Resurgent Capital Services, L.P. (“Resurgent”) since 

October 23, 2013. Exhibit G.

10.Resurgent also reported the loan as a closed charge off account with a $0 

balance. Exhibit A.

11.This second mortgage loan had reported as a closed account with a zero 

balance for 6 years prior to Shellpoint acquiring servicing of the loan. Exhibit 

H.

12.The Shellpoint Misrepresentation is an error because the Peoria Property that was 

used to secure the debt was sold through foreclosure in June 2009 and the statute of 

limitations for any breach of contract action subsequently expired on or before 

January 2015 pursuant to A.R.S. § 12-548. 

13.In the alternative, Shellpoint had no recourse against Plaintiffs beyond the sale of the 

collateral, because the subject mortgage is a non-recourse debt pursuant to A.R.S. §§

33-729, 33-814.

14.In the alternative, Shellpoint is not entitled to collect the debt. 

15.Plaintiffs disputed the reporting of the account with the Defendants in January 2015.

In January 2015, The Plaintiffs disputed the errors with the Defendant CRAs 

who notified Shellpoint of the dispute; however, Plaintiffs allege that none of 

the Defendants conducted a reasonable investigation of the disputed 

information in violation of FCRA 15 U.S.C. §§ 1681i(a)(1)(A) and 1681s-2(b).

16.Pursuant to Shellpoint’s own written statement dated January 30, 2015, Shellpoint

agreed to cease reporting the loan to the major credit bureaus and update their own 

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records. Exhibit B. 

17.In May 2015, Plaintiffs applied for a mortgage loan and discovered the Shellpoint

Misrepresentation remained on their credit report. Exhibit C. 

18.Shellpoint is required to report closed mortgage transactions where no balance is due 

as closed with zero balance due, zero balance past due, with a status of “paid” or

“paid charge-off,” or “settled.” Exhibit D.

19.Shellpoint is permitted to report the Peoria Property account as a closed mortgage 

account with a status of charge off with a balance of zero, past due balance of zero, 

and closed as of the date of sale, or June 2009, and Shellpoint is allowed to report 

this information for seven years after the last payment was made prior to the 

foreclosure pursuant to the Fair Credit Reporting Act. 15 U.S.C. § 1681c. 

20.Shellpoint is misrepresenting the status of the account by reporting the Shellpoint 

Misrepresentation because the unpaid balance represents to all viewing the 

Plaintiffs’ credit reports that a balance remains due, owing, and legally enforceable; 

in other words, that the consumers remain personally liable for the debt. 

21.Shellpoint is not permitted to report the mortgage account associated with the Peoria 

Property as having an unpaid balance, past due balance, or status of unpaid “charge 

off.” 

22.Shellpoint cannot report a debt as due and owing by the Plaintiffs after Shellpoint 

agreed to discontinue reporting and because the Plaintiffs definitively are not being 

held liable for the debt by Shellpoint or given an opportunity to resolve the debt by 

Shellpoint. 

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23.Shellpoint’s reporting of an unenforceable debt as due is a misrepresentation of fact 

and violates The Fair Debt Collection Practices Act, 15 U.S.C. §§ 1692e-f, and the 

Fair Credit Reporting Act, 15 U.S.C. §§ 1681i, 1681s-2. 

24.Shellpoint is only permitted to report information about the account for seven years 

pursuant to the Fair Credit Reporting Act. 15 U.S.C. § 1681c; however, the account 

remains on Plaintiffs credit report. Exhibit E.

25.Shellpoint is not permitted to falsely report information. 15 U.S.C. § 1681s-2. 

26.Shellpoint, Equifax, Experian, and Transunion negligently and maliciously failed to 

use reasonable procedures to investigate the Plaintiffs’ dispute of credit information

directly in violation of FCRA 15 U.S.C. §§ 1681i(a)(1)(A), and 1681s-2(b). 

27.Shellpoint with malicious and evil intent continues to report this account with an 

unpaid balance to the credit reporting agencies while having actual knowledge that 

the Plaintiffs are not personally liable for the debt. 

28.Defendants, Equifax, Experian, and Transunion, herein “Defendant Credit Bureaus.” 

were notified of the error through disputes conducted by the Plaintiffs undersigned 

counsel and by Shellpoint. Exhibit B and F.

29.Defendants Equifax, Experian and Trans Union negligently or with willful 

intent violated the FCRA 15 U.S.C. §§ 1681i(a)(1)(A) by failing to implement 

and use reasonable procedures to investigate and assure maximum possible 

accuracy, by allowing multiple entities to report conflicting and inaccurate 

information about Plaintiffs second mortgage account, and by allowing 

Shellpoint to continue to report an unpaid balance despite Plaintiffs’ dispute 

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specifically informing the CRAs that the debt was potentially non-recourse or 

in the alternative that the statute of limitations had expired. Exhibit F. 

30.Defendants Equifax, Experian, and Trans Union negligently or with willful 

intent violated the FCRA 15 U.S.C. §§ 1681c by failing to implement and use 

reasonable procedures to investigate and assure maximum possible accuracy by 

allowing Shellpoint to report the account on the Plaintiffs’ credit reports for 

longer than seven years. 

31.Shellpoint, Equifax, Experian, and Transunion with malicious and evil intent have

failed to implement reasonable procedures to investigate disputes of credit 

information as required by the Fair Credit Reporting Act. 

32.Shellpoint is using credit reporting is a method of debt collection.

33.Shellpoint is using credit reporting to illegally enforce collection of the debt in 

violation of the Fair Credit Reporting Act 15 U.S.C. §1681s-2(a) and the Fair Debt 

Collection Practices Act 15 U.S.C. §§ 1692e(2), 1692f(6). 

34.The Plaintiffs are attempting to rebuild their credit rating, it has been nearly 7 years 

since the foreclosure and they have expended great effort to improve their financial 

position and credit rating. 

35.Plaintiffs were embarrassed when they saw the balance because they believed the 

matter was resolved and they were forced to relive the traumatic experience of 

losing their home. 

36.When the Plaintiffs discovered the unpaid balance reporting on their credit reports, 

they suffered significant stress and embarrassment and have been afraid to apply for 

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personal or business financing for fear of being turned down again; and because they 

are unable to rebuild their credit they are paying high interest rates on their current 

mortgage. 

37.Plaintiffs are experiencing financial harm as a result of the Shellpoint 

Misrepresentation in the form of higher interest rates, higher insurance rates, higher 

security deposits and higher down payments over the last two years. 

38.Plaintiffs have been denied credit-based financing as a result of the Shellpoint 

Misrepresentation. 

JURISDICTION 

39.This Court has jurisdiction over this action under 15 U.S.C. § 1681(p) and 15 U.S.C. 

1692k(d). An action to enforce liability created under The Fair Credit Reporting Act 

or The Fair Debt Collection Practices Act may be brought in any appropriate United 

States district court without regard to the amount in controversy or in any other court 

of competent jurisdiction within two years of the date of discovery of the violation 

by the Plaintiff or within five years after the date on which the violation occurs for 

Fair Credit Reporting Act cases, or within 1 year from the date on which the 

violation occurs for Fair Debt Collection Practices Act cases. 

40.Venue is proper pursuant to 28 U.S.C. § 1391 because the claim of action arose in 

Maricopa County, Arizona. The note for the mortgage debt was executed in 

Maricopa County, Arizona. The subsequent reporting of credit information relating 

to said note gives rise to this cause of action subject to federal question jurisdiction, 

as well as diversity jurisdiction. 

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FIRST CLAIM FOR RELIEF 

FALSE REPORTING 

41.Plaintiffs re-allege and incorporate paragraphs 1 through 33 above as fully set forth 

herein. 

42.Defendant Shellpoint violated FCRA 15 U.S.C. § 1681s-2(b) by continuing to report 

Plaintiffs’ former mortgage account with the unpaid balance of $55,830, the past due 

balance of $55,335, and with a status of unpaid “charge off;” the result of failing to 

fully and properly investigate the Plaintiffs’ dispute of the Shellpoint 

Misrepresentation, failing to accurately respond to the Defendant Credit Bureaus, 

and by failing to permanently and lawfully correct its own internal records to 

prevent the re-reporting of the Shellpoint Misrepresentation to the Defendant Credit 

Bureaus. 

43.Defendants, Equifax, Experian, and Transunion, violated FCRA 15 U.S.C. § 1681i

by failing to investigate and respond in a timely manner and by failing to maintain 

reasonable procedures to assure maximum possible accuracy of the information 

concerning the Shellpoint Misrepresentation. 

44.Defendants violated FCRA 15 U.S.C. § 1681c by reporting the Shellpoint 

Misrepresentation for longer than 7 years. 

45.Defendants’ actions were negligent as defined by FCRA 15 U.S.C. §§ 1681n.

46.Defendants’ actions were malicious and conducted with evil intent as defined by 

FCRA 15 U.S.C. § 1681 o. 

47.As a result of this conduct, action, and inaction by Defendants, Plaintiffs suffered 

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damage by paying higher rates on their mortgage, higher insurance rates and 

security deposits, loss of credit, loss of the ability to purchase and benefit from 

credit, and the mental and emotional pain, anguish, humiliation, and embarrassment

which prevents Plaintiffs from applying for credit personally or for their business to 

their extreme detriment.

48.The Defendants conduct, action, and inaction render them liable for actual, statutory, 

and punitive damages in the amount to be determined by the Court pursuant to The 

Fair Credit Reporting Act 15 U.S.C. § 1681n, or in the alternative Plaintiffs are

entitled to recover actual damages pursuant to 15 U.S.C. § 1681o. 

49.Plaintiffs are entitled to recover costs and attorney fees from Defendants in an 

amount to be determined by the court pursuant to 15 U.S.C. §§ 1681n-o. 

SECOND CLAIM FOR RELIEF 

UNFAIR AND DECEPTIVE COLLECTION PRACTICES 

50.Plaintiffs re-allege and incorporate paragraphs 1 through 42 above as fully set forth 

herein. 

51.Shellpoint falsely represented the character, amount, and legal status of the debt to

the consumer via mail and to third parties via credit reporting by reporting sums not

legally enforceable; specifically by representing that Plaintiffs owed $55,830.00 

when Shellpoint knew or should have known that the debt was expired, nonrecourse, or otherwise uncollectable in violation of 15 U.S.C. § 1692e(2)(A). 

52.Shellpoint falsely threatened to take action that could not legally be taken or that 

was not intended to be taken by reporting the mortgage debt as due and legally 

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enforceable to the credit bureaus when Shellpoint knew or should have known that 

Shellpoint could not pursue legal action to enforce the debt as is implied by the 

method of credit reporting in violation of 15 U.S.C. §1692e(5). 

53.Shellpoint communicated credit information which is known or should be known to 

be false, including the failure to communicate that the debt was disputed by 

communicating the Shellpoint Misrepresentation to the major credit reporting 

agencies in violation of 15 U.S.C. § 1692e(8). 

54.Shellpoint used false representation or deceptive means to collect the debt by using 

credit reporting as a collection method to falsely portray the debt as valid and 

enforceable when Shellpoint knew or should have known that the debt was expired, 

unenforceable, or otherwise uncollectable in violation of 15 U.S.C. § 1692e(10). 

55.Shellpoint used false representation or deceptive means to collect the debt by failing 

to inform Plaintiffs that the debt was not legally enforceable, expired, or otherwise 

uncollectable in violation of 15 U.S.C. §1692e(10). 

56.Shellpoint used unfair or unconscionable means to collect the debt by attempting to 

collect amounts that were not legally due in violation of 15 U.S.C. § 1692f(1). 

57.Shellpoint used unfair or unconscionable means to collect the debt by threatening to 

foreclose or otherwise dispose of the Plaintiffs’ real estate property though there was 

no present right to possession of the property or intention to take possession of the 

property in violation of 15 U.S.C. § 1692f(6). 

58.Shellpoint failed to comply with The Fair Debt Collection Practices Act and are 

liable to Plaintiffs for actual damages and additional damages as the court may 

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allow, up to $1,000.00 per incident pursuant to 15 U.S.C. §1692k.

59.Plaintiffs are entitled to recover costs and attorney fees from Defendant in an 

amount to be determined by the court pursuant to 15 U.S.C. § 1692k(a)(3). 

WHEREFORE, Plaintiffs demand judgment for compensatory, actual, and punitive 

damages against Defendant for no less than $500,000, for their attorney fees and costs, for 

pre-judgment and post-judgment interest at the legal rate, and such other relief the Court 

deems just, equitable, and proper. 

DATED this 7

th Day of April, 2016.

/s/ Rochelle N. Belnap

Rochelle N. Belnap

The Arizona Credit Law Group, P.L.L.C.

700 E Baseline Rd Suite C-3

Tempe, AZ 85283 

(480) 907-6088

Attorneys for Plaintiffs 

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CERTIFICATE OF SERVICE

I hereby certify that on April 7, 2016, the Plaintiffs’ First Amended Complaint was served 

this day on the below listed Defendants electronically using the Court’s CM/ECF System. 

/s/ Rochelle N Belnap 

Rochelle N Belnap 

The Arizona Credit Law Group, P.L.L.C.

700 E Baseline Rd Suite C-3

Tempe, AZ 85283 

(480) 907-6088

Attorney for Plaintiffs 

Todd D. Erb 

Lewis Roca Rothgerber Christie LLP

201 E Washington St Ste 1200 

Phoenix, AZ 85004-2595 

Email: terb@lrrc.com

Local Counsel for Shellpoint Mortgage 

Servicing 

Alexandra Fries 

Jones Day 

555 S Flower St. 50th Floor 

Los Angeles, CA 90071-2300 

Email: Afries@JonesDay.com

Counsel for Experian Information 

Soluctions 

Jacob C. Jones 

Snell & Wilmer LLP 

One Arizona Center 

400 E Van Buren Ste 1900 

Phoenix, AZ 85004-2202 

Email: jcjones@swlaw.com

Local Counsel for Equifax Information 

Services, LLC 

Amanda Loughmiller 

Strasburger & Price 

2801 Network Blvd. Suite 600

Frisco, TX 75034 

Email: 

amanda.loughmiller@strasburger.com

Corporate Counsel for Trans Union, LLC 

Philip Wooten 

Philip R. Wooten PC 

3413 E Equestrian Trail 

Phoenix, AZ 85044-3403 

Email: Philip.wooten@azbar.org

Local Counsel for Trans Union, LLC 

Case 2:15-cv-02262-SRB Document 54 Filed 04/07/16 Page 13 of 13