COMPLAINT 1

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David J. McGlothlin, Esq. (SBN 026059)

david@southwestlitigation.com

Hyde & Swigart

2633 E. Indian School Road, Ste. 460

Phoenix, AZ 85016

Telephone: (602) 265-3332

Facsimile: (602) 230-4482 Ryan L. McBride, Esq. (SBN 032001)

ryan@kazlg.com

Kazerouni Law Group, APC

2633 E. Indian School Road, Ste. 460

Phoenix, AZ 85016

Telephone: (800) 400-6808

Facsimile: (800) 520-5523

Attorneys for Plaintiff

UNITED STATES DISTRICT COURT

DISTRICT OF ARIZONA

INTRODUCTION

1. The United States Congress has found the banking system is dependent upon 

fair and accurate credit reporting. Inaccurate credit reports directly impair 

the efficiency of the banking system, and unfair credit reporting methods 

Michael John Kaus, 

 Plaintiff, 

 v. 

Equifax Information Services, 

LLC, J.P. Morgan Chase Bank, 

N.A., and American Express

Company,

 Defendants.

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Case No.:

COMPLAINT FOR DAMAGES 

PURSUANT TO THE FAIR CREDIT 

REPORTING ACT, 15 U.S.C. § 1681, ET SEQ.

JURY TRIAL DEMANDED

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 1 of 13
COMPLAINT 2

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undermine the public confidence, which is essential to the continued 

functioning of the banking system. Congress enacted the Fair Credit 

Reporting Act, 15 U.S.C. § 1681 et seq. (“FCRA”), to insure fair and 

accurate reporting, promote efficiency in the banking system, and protect 

consumer privacy. The FCRA seeks to ensure consumer reporting agencies 

exercise their grave responsibilities with fairness, impartiality, and a respect 

for the consumer’s right to privacy because consumer reporting agencies 

have assumed such a vital role in assembling and evaluating consumer credit 

and other information on consumers. The FCRA also imposes duties on the 

sources that provide credit information to credit reporting agencies, called 

“furnishers.”

2. MICHAEL JOHN KAUS (“Plaintiff”), by Plaintiff’s attorneys, brings this 

action to challenge the actions of EQUIFAX INFORMATION SERVICES, 

LLC, (“Equifax”) J.P. MORGAN CHASE BANK, N.A. (“Chase”), and 

AMERICAN EXPRESS (“AMEX”) (or jointly as “Defendants”) with 

regard to erroneous reports of derogatory and negative credit information 

made by Defendants to national reporting agencies, and for failure of 

Defendants to properly investigate, and this conduct caused Plaintiff 

damages. 

3. Plaintiff makes these allegations on information and belief, with the 

exception of those allegations that pertain to Plaintiff, or to Plaintiff’s 

counsel, which Plaintiff alleges on personal knowledge.

4. While many violations are described below with specificity, this Complaint 

alleges violations of the statute cited in its entirety. 

5. Unless otherwise stated, all the conduct engaged in by Defendants took 

place in Arizona.

6. Any violations by Defendants were knowing, willful, and intentional, and 

Defendant did not maintain procedures reasonably adapted to avoid any such 

violation.

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 2 of 13
COMPLAINT 3

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7. Unless otherwise indicated, the use of Defendants’ name in this Complaint 

includes all agents, employees, officers, members, directors, heirs, 

successors, assigns, principals, trustees, sureties, subrogees, representatives, 

and insurers of Defendants’ named.

JURISDICTION AND VENUE

8. This Court has federal question jurisdiction because this case arises out of 

violation of federal law. 15 U.S.C. §1681 et seq.; 28 U.S.C. §1331; 

Jurisdiction arises for Plaintiff’s supplemental state claims under 28 U.S.C. 

§ 1367.

9. This action arises out of Defendants’ violations of the Fair Credit Reporting 

Act, 15 U.S.C. §§ 1681-1681(x) (“FCRA”).

10. Venue is proper in the United States District Court for the District of 

Arizona pursuant to 28 U.S.C. § 1391(b) because Plaintiff is a resident of 

Maricopa County, the State of Arizona and Defendants are subject to 

personal jurisdiction in the County of Maricopa, State of Arizona as they 

conduct business there, and the conduct giving rise to this action occurred in 

Arizona. 28 U.S.C. § 1391(b)(2). 

PARTIES

11. Plaintiff is a natural person residing in the County of Maricopa, State of 

Arizona. In addition, Plaintiff is a “consumer” as that term is defined by 15 

U.S.C. § 1681a(c). 

12. Defendant Equifax is a foreign limited liability company doing business in 

the State of Arizona.

13. Defendant Chase is a bank doing business in the State of Arizona. 

14. Defendant AMEX is a corporation registered with the Arizona Secretary of 

State doing business in the State of Arizona. 

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 3 of 13
COMPLAINT 4

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15. Defendants Chase and AMEX are furnishers of information as contemplated 

by 15 U.S.C. § 1681s-2(b) that regularly and in the ordinary course of 

business furnish information to a consumer credit reporting agency. 

16. Defendant Equifax is a national credit reporting agency, doing business in 

Arizona, with a principal place of business in Georgia.

GENERAL ALLEGATIONS

17. At all times relevant, Plaintiff was an individual residing within the State of 

Arizona.

18. At all times relevant, Defendants conducted business in the State of Arizona.

19. On or about August 10, 2009, Plaintiff filed for Chapter 13 Bankruptcy in 

the United States Bankruptcy Court for the District of Arizona. Plaintiff’s 

case was assigned Case Number 2:09-bk-19053-EPB (the “Bankruptcy”) in 

order to obtain a fresh start and rebuild his credit.

20. The obligations (“Debt”) to each defendant were scheduled in the 

Bankruptcy and Defendants, the Creditors, received notice of the 

Bankruptcy.

21. On or about October 6, 2014, Plaintiff received a Bankruptcy discharge.

22. None of the Defendants filed any proceedings to declare their Debt “non 

dischargeable” pursuant to 11 U.S.C. § 523 et seq. 

23. Defendants also did not request relief from the “automatic stay” codified at 

11 U.S.C. §362 et seq. while the Plaintiff’s Bankruptcy was pending to 

pursue the Plaintiff on any personal liability for any of the underlying Debts.

24. Accordingly, the Debt to each defendant was discharged through the 

Bankruptcy.

25. Further, while the automatic stay was in effect during the Bankruptcy, it was 

illegal for any of the Defendants to report any post-Bankruptcy derogatory 

collection information.

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 4 of 13
COMPLAINT 5

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26. Defendants’ attempt to collect upon their respective Debt by reporting postBankruptcy derogatory information was therefore false or inaccurate and 

prohibited by the automatic stay or Discharge. 

27. Plaintiff subsequently learned that each of the named Defendants reported 

post-Bankruptcy derogatory credit information regarding the obligations on 

Plaintiff’s credit reports, thereby causing erroneous and negative credit 

information in Plaintiff’s credit files.

Chase Misreported Credit Information

28. In an Equifax credit report dated May 8, 2015, Chase reported the following 

inaccurate, derogatory information:

• Chase Mortgage Account No. 156001789****: Postbankruptcy information for the following dates: November 

2009 (30+ days past due); September 2012 (90+ days past 

due); October 2012 (120+days past due).

• Chase Card Account No. 512488010015 : Post-bankruptcy 

information for the following dates: 2/2013 (Date Major 

Delinquency First Reported).

29.Chase should not have reported derogatory information on Plaintiff’s 

account after August 10, 2009, because Plaintiff filed for Bankruptcy on 

August 10, 2009.

30. On or about June 5, 2015, Plaintiff disputed Chase’s reported information 

regarding the Debt pursuant to 15 U.S.C. § 1681I(a)(2) by notifying Equifax,

in writing, of the incorrect and inaccurate credit information furnished by 

Chase. 

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COMPLAINT 6

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31. Specifically, Plaintiff sent a letter, certified, return receipt, to Equifax (the 

“Equifax Dispute Letter”), requesting the above inaccurate and incorrect 

derogatory information be removed as follows:

• Chase Mortgage Account No. 156001789** **: This account 

was discharged in my Bankruptcy which was filed on 

08/10/2009 and discharged 10/06/2014, bearing docket No. 

2:09-bk-19053-EPB in the District for Arizona. There should 

be no derogatory reporting after the filing date. Specifically, 

please remove the derogatory information for the following 

post-bankruptcy dates: 8/2009 (Date of First Delinquency); 

August 2009 (120+ days past due); November 2009 (30+ days 

past due); September 2012 (90+ days past due); October 2012 

(120+days past due).

• Chase Card Account No. 512488010015 : This account 

was discharged in my Bankruptcy which was filed on 

08/10/2009 and discharged 10/06/2014, bearing docket No. 

2:09-bk-19053-EPB in the District for Arizona. There should 

be no derogatory reporting after the filing date. Specifically, 

please remove the derogatory information for the following 

post-bankruptcy dates: 2/2013 (Date Major Delinquency First 

Reported).

32. The Equifax Dispute Letter further requested that Equifax:

• Immediately delete this account and the disputed derogatory 

information from my credit report.

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 6 of 13
COMPLAINT 7

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• The discharged debt should be reported with an account balance 

of $0 with a status of “current”.

• Further, there should be no post-bankruptcy activity reported on 

this account. The date of last activity on this account should predate my bankruptcy filing date, 08/10/2009, since a default on this 

account occurred no later than the Bankruptcy filing date.

• Any post-bankruptcy derogatory information should be 

immediately deleted from [Plaintiff’s] report.

• If [Equifax] do[es] not immediately delete this from 

[Plaintiff’s] credit report, please include a 100-word statement in 

my credit report of all of the disputed information contained in this 

letter regarding this account. 

33. Upon information and belief, Equifax timely notified Chase of Plaintiff’s 

dispute, but Chase continued reporting derogatory information.

34. Chase and Equifax were required to conduct a reinvestigation into this 

specific account on Plaintiff’s consumer report pursuant to 15 U.S.C. 

§1681i.

35. On or about July 15, 2015, Plaintiff received notification from Equifax that 

Chase and Equifax received notice of Plaintiff’s dispute pursuant to 15 

U.SC. § 1681i(a)(6), and Defendants verified the account had been updated. 

36. Surprisingly, rather than remove all the derogatory information from 

Plaintiff’s report, Chase and Equifax simply left derogatory information on 

Plaintiff’s report. Specifically, Chase and Equifax reported the following 

inaccurate, derogatory information:

• Chase Mortgage Account No. 156001789** **: Postbankruptcy information for the following dates: October 2012 

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 7 of 13
COMPLAINT 8

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(120-149 Days Past Due); September 2012 (90-119 Days Past 

Due), November 2009 (30-59 Days Past Due). 

• Chase Card Account No. 512488010015 : Post-bankruptcy 

information for the following dates: February 2013 (Date 

Major Delinquency First Reported).

37. Chase and Equifax, upon receipt of Plaintiff’s dispute, failed to conduct an 

investigation with respect to the disputed information as required by 15 

U.SC. § 1681s-2(b)(1)(A).

38. Chase and Equifax failed to review all relevant information provided by 

Plaintiff in the dispute to Equifax, as required by and in violation of 15 

U.SC. § 1681s-2(b)(1)(B).

39. Due to Chase and Equifax’s failure to investigate, they each further failed to 

correct and update Plaintiff’s information as required by 15 U.S.C. § 1681s2(b)(1)(E), thereby causing continued reporting of inaccurate information in 

violation of 15 U.S.C. § 1681-s(2)(b)(1)(C).

40. Plaintiff’s continued efforts to correct Chase and Equifax’s erroneous and 

negative reporting of the Debt by communicating Plaintiff’s dispute with 

Chase and Equifax were fruitless.

41. Chase and Equifax’s continued inaccurate and negative reporting of the Debt 

in light of its knowledge of the actual error was willful.

42. Chase and Equifax’s inaccurate and negative reporting damaged Plaintiff’s 

creditworthiness.

43. By inaccurately reporting account information relating to the Debt after 

notice and confirmation of its errors, Chase and Equifax failed to take the 

appropriate measures as determined in 15 U.S.C. §§ 1681-s(2)(b)(1)(D) and 

(E).

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 8 of 13
COMPLAINT 9

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American Express Misreported Credit Information

44. In an Equifax credit report dated May 8, 2015, AMEX reported the 

following inaccurate, derogatory information:

• Account #349991415977** **: Post-bankruptcy information 

for the following dates: September 2009 (Date Major 

Delinquency First Reported).

45. AMEX should not have reported derogatory information on Plaintiff’s 

account after August 10, 2009, because Plaintiff filed for Bankruptcy on 

August 10, 2009.

46. On or about June 5, 2015, Plaintiff disputed AMEX’s reported information 

regarding the Debt pursuant to 15 U.S.C. § 1681I(a)(2) by notifying Equifax, 

in writing, of the incorrect and inaccurate credit information furnished by 

AMEX. 

47. Specifically, Plaintiff sent a letter, certified, return receipt, to Equifax (the 

“Equifax Dispute Letter”), requesting the above inaccurate and incorrect 

derogatory information be removed as follows:

• This account was discharged in my Bankruptcy which was filed 

on 08/10/2009 and discharged 10/06/2014, bearing docket No. 

2:09-bk-19053-EPB in the District for Arizona. There should 

be no derogatory reporting after the filing date. Specifically, 

please remove the derogatory information for the following 

post-bankruptcy dates: 9/2009 (Date Major Delinquency First 

Reported).

48. The Equifax Dispute Letter further requested that Equifax:

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COMPLAINT 10

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• Immediately delete this account and the disputed derogatory 

information from [Plaintiff’s] credit report.

• The discharged debt should be reported with an account balance 

of $0 with a status of “current”.

• Further, there should be no post-bankruptcy activity reported on 

this account. The date of last activity on this account should predate my bankruptcy filing date, 08/10/2009, since a default on this 

account occurred no later than the Bankruptcy filing date.

• Any post-bankruptcy derogatory information should be 

immediately deleted from [Plaintiff’s] report.

• If [Equifax] do[es] not immediately delete this from 

[Plaintiff’s] credit report, please include a 100-word statement in 

my credit report of all of the disputed information contained in this 

letter regarding this account. 

49. Upon information and belief, Equifax timely notified AMEX of Plaintiff’s 

dispute, but AMEX continued reporting derogatory information.

50. AMEX and Equifax were required to conduct a reinvestigation into this 

specific account on Plaintiff’s consumer report pursuant to 15 U.S.C. 

§1681i.

51. On or about July 15, 2015, Plaintiff received notification from Equifax that 

AMEX and Equifax received notice of Plaintiff’s dispute pursuant to 15 

U.SC. § 1681i(a)(6), and verified the account “does not report any balance 

with any late payments”. 

52. Surprisingly, rather than remove all the derogatory information from 

Plaintiff’s report, AMEX and Equifax simply left derogatory information on 

Plaintiff’s report. Specifically, AMEX and Equifax reported the following 

inaccurate, derogatory information:

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 10 of 13
COMPLAINT 11

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• Post-bankruptcy information for the following dates: 

September 2009 (Date Major Delinquency First Reported).

53. AMEX and Equifax, upon receipt of Plaintiff’s dispute, failed to conduct an 

investigation with respect to the disputed information as required by 15 

U.SC. § 1681s-2(b)(1)(A).

54. AMEX and Equifax failed to review all relevant information provided by 

Plaintiff in the dispute to Equifax, as required by and in violation of 15 

U.SC. § 1681s-2(b)(1)(B).

55. Due to AMEX and Equifax’s failure to investigate, they each further failed 

to correct and update Plaintiff’s information as required by 15 U.S.C. § 

1681s-2(b)(1)(E), thereby causing continued reporting of inaccurate 

information in violation of 15 U.S.C. § 1681-s(2)(b)(1)(C).

56. Plaintiff’s continued efforts to correct AMEX and Equifax’s erroneous and 

negative reporting of the Debt by communicating Plaintiff’s dispute with 

AMEX and Equifax were fruitless.

57. AMEX and Equifax’s continued inaccurate and negative reporting of the 

Debt in light of its knowledge of the actual error was willful.

58. AMEX and Equifax’s inaccurate and negative reporting damaged Plaintiff’s 

creditworthiness.

59. By inaccurately reporting account information relating to the Debt after 

notice and confirmation of its errors, AMEX and Equifax failed to take the 

appropriate measures as determined in 15 U.S.C. §§ 1681-s(2)(b)(1)(D) and 

(E).

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Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 11 of 13
COMPLAINT 12

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FIRST CAUSE OF ACTION

VIOLATION OF THE FAIR CREDIT REPORTING ACT

15 U.S.C. § 1681 ET SEQ. (FCRA)

60. Plaintiff incorporates by reference all of the above paragraphs of this 

Complaint as though fully stated herein.

61. The foregoing acts and omissions constitute numerous and multiple willful, 

reckless or negligent violations of the FCRA, including but not limited to 

each and every one of the above-cited provisions of the FCRA, 15 U.S.C § 

1681.

62. As a result of each and every willful violation of the FCRA, Plaintiff is 

entitled to actual damages as the Court may allow pursuant to 15 U.S.C. § 

1681n(a)(1); statutory damages pursuant to 15 U.S.C. § 1681n(a)(1); 

punitive damages as the Court may allow pursuant to 15 U.S.C. § 

1681n(a)(2); and reasonable attorney’s fees and costs pursuant to 15 U.S.C. 

§ 1681n(a)(3) from Defendants.

63. As a result of each and every negligent noncompliance of the FCRA, 

Plaintiff is entitled to actual damages as the Court may allow pursuant to 15 

U.S.C. § 1681o(a)(1); and reasonable attorney’s fees and costs pursuant to 

15 U.S.C. § 1681o(a)(2) from Defendants.

PRAYER FOR RELIEF

Plaintiff respectfully requests the Court grant Plaintiff the following relief 

against Defendants:

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COMPLAINT 13

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FIRST CAUSE OF ACTION

VIOLATION OF THE FAIR CREDIT REPORTING ACT

15 U.S.C. § 1681 ET SEQ. (FCRA)

• an award of actual damages pursuant to 15 U.S.C. § 1681n(a)(1);

• award of statutory damages pursuant to 15 U.S.C. § 1681n(a)(1);

• an award of punitive damages as the Court may allow pursuant to 15 

U.S.C. § 1681n(a)(2); 

• award of costs of litigation and reasonable attorney’s fees, pursuant to 15 

U.S.C. § 1681n(a)(3), and 15 U.S.C. § 1681(o)(a)(1) against Defendants 

for each incident of negligent noncompliance of the FCRA; and

• any other relief the Court may deem just and proper.

TRIAL BY JURY

64. Pursuant to the seventh amendment to the Constitution of the United States 

of America, Plaintiff is entitled to, and demands, a trial by jury.

Dated: October 12, 2015 Respectfully submitted,

BY: /S/ DAVID J. MCGLOTHLIN______

DAVID J. MCGLOTHLIN, ESQ.

ATTORNEY FOR PLAINTIFF

Case 2:15-cv-02044-JJT Document 1 Filed 10/12/15 Page 13 of 13