Opinion ID: 563740
Heading Depth: 2
Heading Rank: 1

Heading: CBI's Reporting of Cahlin's GMAC Account

Text: 3 In August, 1985, GMAC began reporting to CBI that Cahlin's account was delinquent, and in December, GMAC further reported that the account had been charged off its books as an active receivable. As a result, CBI reported the GMAC account in Cahlin's credit report as having an I9 rating with a balance due of $3,843.44. An I9 rating signifies that the account has been charged off or is a bad debt. 4 After Cahlin satisfied the terms of the settlement agreement and received a general release, GMAC informed CBI by letter on June 16, 1986 that [w]e previously reported a loss on the above mentioned account. The loss has now been paid in full, thus liquidating the balance on the account. We would appreciate your marking your file accordingly. In response to that letter, CBI changed the GMAC tradeline on Cahlin's credit file to a zero balance, but continued to carry an I9 rating. In August, 1986, Cahlin received a current copy of his credit report from CBI and mailed a customer dispute form on August 20 in which he stated that his debt to GMAC had been paid in full. He also attached a copy of the general release from GMAC. Although this dispute form was received by CBI, it took no action on it other than to send him a copy of his credit report. This report dated September 11, 1986 shows that the GMAC account continued to carry the I9 rating and a zero balance. 5 As a result of complaints from Cahlin, GMAC sent a letter to CBI on October 9, 1986, directing it to change the rating on [Cahlin's] account from I-9 to I-1. An I-1 rating signifies that a debt is paid within 30 days of billing. In response to this letter, CBI reported the current status of Cahlin's GMAC account as having an I-1 rating, but relocated the I-9 reference to the section of the report documenting Cahlin's previous credit history. The previous history section now reflected that GMAC had reported Cahlin as an I-9 rating in June, 1986. 6 One year later on October 12, 1987, Cahlin sent a letter to CBI requesting that it remove the I9 rating from the previous history section of his GMAC account. CBI subsequently called GMAC on October 28 and, upon instructions from GMAC, changed Cahlin's report by deleting any reference to an I9 rating. By November 3, 1987, CBI ceased reporting any derogatory information concerning the GMAC account on Cahlin's credit report. 7 As a result of this negative credit information reported by CBI, Cahlin alleges that he was damaged by being denied credit on numerous occasions between the time of the October 9, 1986 GMAC letter to CBI and the final correction of his credit report on November 3, 1987.