[Administrator]

Mathis v. LHR, Inc.
Slip Copy, 2010 WL 316546
S.D.Ga.,2010.
January 26, 2010

ORDER
J. RANDAL HALL, District Judge.


*1 After a careful, de novo review of the file, the Court concurs with the Magistrate Judge's Report and Recommendation, to which no objections have been filed. Accordingly, the Report and Recommendation of the Magistrate Judge is ADOPTED as the opinion of the Court. Therefore, Plaintiff's Fair Credit Reporting Act claim is DISMISSED from this case.


SO ORDERED.


MAGISTRATE JUDGE'S REPORT AND RECOMMENDATION
W. LEON BARFIELD, United States Magistrate Judge.


Plaintiff is proceeding pro se and in forma pauperis (“IFP”) in this case. As Plaintiff's complaint was filed IFP, it must be screened to protect potential defendants. Phillips v. Mashburn, 746 F.2d 782, 785 (11th Cir.1984). Pleadings drafted by pro se litigants must be liberally construed, Haines v. Kerner, 404 U.S. 519, 520-21 (1972) ( per curiam ), but the Court may dismiss a complaint, or any part thereof, that is frivolous or malicious or that fails to state a claim upon which relief may be granted. 28 U.S.C. § 1915(e)(2)(B)(i) & (ii).


I. BACKGROUND
Liberally construing Plaintiff's complaint, the Court finds the following. Plaintiff names the following Defendants: (1) LHR, Inc., and (2) John Does, 1 through 10 inclusive.FN1 (Doc. no. 1, p. 1). Plaintiff attempts to raise a claim pursuant the Fair Debt Collection Practices Act, a claim pursuant the Fair Credit Reporting Act (“FCRA”), and a claim for invasion of privacy.


FN1. Plaintiff has identified Defendants Does 1 through 10 inclusive as principals, beneficiaries, agents, co-conspirators, joint venturers, alter egos, and/or third party beneficiaries of LHR, Inc. (Doc. no. 1, p. 2).



According to Plaintiff, sometime prior to May 2009 he incurred a financial obligation that was primarily for personal, family, or household purposes. ( Id. at 2). Sometime thereafter the alleged debt was consigned or otherwise transferred to Defendant LHR, Inc., for collection. ( Id.). In May and June 2009, Plaintiff requested verification of the purported debt from Defendants, but they never provided any such verification. Additionally, Defendants continued to list the purported debt on Plaintiff's credit report. ( Id.).


Next, Plaintiff maintains that in June 2009 he notified Defendants that the account(s), presumably denoting the purported debt, did not belong to him and again requested that they provide some verification of the debt, or delete it. FN2 ( Id. at 3). According to Plaintiff, despite his actions, Defendants continued to report this debt as open and current even though Defendants were now aware that the debt did not belong to him. ( Id.). Plaintiff states that as a result of Defendants' collection activities, he has suffered loss of self-esteem and peace of mind, and has suffered emotional distress, humiliation and embarrassment. ( Id.).


FN2. Plaintiff acknowledges initially, that he had incurred a debt; the crux of Plaintiff's claims is that this debt does not belong to him. Notably, however, Plaintiff does not clarify or provide any explanation for this change in his “debt” status.



II. DISCUSSION
Plaintiff seeks to recover from Defendants pursuant to the FCRA. ( Id.). Under the FCRA, “civil liability for improper use and dissemination of credit information may be imposed on only a consumer reporting agency or user of reported information who willfully or negligently violated the FCRA.” Rush v. Macy's New York, Inc., 775 F.2d 1554, 1557 (11th Cir.1995) (citing 15 U.S.C.A. §§ 1681n and 1681o). Plaintiffs case against Defendants pursuant to the FCRA fails because Defendants are not a credit reporting agency. The FCRA provides that a credit reporting agency is:


*2 any person which, for monetary fees, dues or on a cooperative non-profit basis, regularly engages in whole or in part in the practice of assembling or evaluating consumer credit information or other information on consumers for the purpose of furnishing consumer reports to third parties, and which uses any means or facility of interstate commerce for the purpose of preparing or furnishing consumer reports.


Id. at 1557 (citing 15 U.S.C.A. § 1681a(f)). Defendants do not fall within this definition, as Defendants are merely a collection agency and/or engaged in the collection of debts from consumers. (Doc. no. 1, pp. 1, 2).


Plaintiff's FCRA claim also fails because the information provided by Defendants was not a consumer report. The FCRA defines a consumer report as:


any written, oral, or other communication of any information by a consumer reporting agency bearing on a consumer's credit worthiness, credit standing, credit capacity, character, general reputation, personal characteristics, or mode of living which is used or expected to be used or collected in whole or in part for the purpose of serving as a factor in establishing the consumer's eligibility for (1) credit or insurance to be used primarily for personal, family or household purposes, or (2) employment purposes, or (3) other purposes authorized under Section 1681(b) of this title.


Rush, 775 F.2d at 1557 (citing 15 U.S.C.A. § 1681 a(d)). Thus, Defendants information was not a consumer report. Simply put, even liberally construing Plaintiff's complaint, he fails to state a claim pursuant to the FCRA against Defendants, and thus, the claim should be dismissed.


III. CONCLUSION
For the reasons set forth above, the Court REPORTS and RECOMMENDS that Plaintiff's FCRA claim be DISMISSED from the case.FN3


FN3. In a simultaneously filed Order, the Court has directed that service of process be effected on Defendants for Plaintiff's Fair Debt Collection Practices Act and invasion of privacy claims.



SO REPORTED and RECOMMENDED on this 24th day of November, 2009, at Augusta, Georgia.


S.D.Ga.,2010.
Mathis v. LHR, Inc.
Slip Copy, 2010 WL 316546 (S.D.Ga.)
_________________
David Szwak
Chairman, Consumer Protection Section, Louisiana State Bar Association
Bodenheimer, Jones & Szwak, LLC
416 Travis Street, Suite 1404
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Shreveport, Louisiana 71101
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