Case Problem:
In 1990, Greg Henson sold his 1980 Chevrolet Camaro Z-28 to his brother, Jeff Henson. To purchase the car, Jeff secured a loan with Cosco Federal Credit Union (Cosco). Soon thereafter, the car was stolen and Jeff stopped making payments on his loan from Cosco. At the time, Cosco was unsure whether Greg retained an interest in the car, so Cosco sued both Jeff and Greg for possession of the car. The trial court rendered a default judgment against Jeff and ruled that Greg no longer had any interest in the car. The clerk, however, erroneously noted in the judgment docket that the money judgment had been rendered against Greg as well as against Jeff. The official record of judgments and orders, however, correctly reflected that only Jeff was affected by the money judgment. Two credit agencies, CSC Credit Services (CSC) and TransUnion Corporation (TransUnion), relied on the state court judgment docket and indicated in Greg’s credit report that he owed the money judgment. Greg and his wife, Mary Henson, allege that they then “contacted Trans [Union] twice, in writing, to correct this horrible injustice.” When TransUnion did not respond, the Hensons brought this action alleging violations of the Federal Credit Reporting Act. The district court, noting that to state a claim under FCRA a consumer must allege that a credit reporting agency prepared a credit report containing inaccurate information, granted the defendants’ motions to dismiss. Who won on appeal? Explain.
Your answer must be, typed, double-spaced, Times New Roman font (size 12), one-inch margins on all sides, APA format and also include references.