Harold Holmes v. Nco Financial Services, Inc

MEMORANDUM

Harold Holmes appeals the district court’s grant of summary judgment in favor of NCO Financial Systems, Inc. (“NCO”) on his class action claim. Holmes alleges that NCO violated the Fair Debt Collection Practices Act (“FDCPA”), 15 U.S.C. §§ 1601 et. seq., and California’s Consumer Credit Reporting Agencies Act (“CCRAA”), Cal. Civ.Code § 1785.25, by reporting accounts to a credit reporting agency without noting that the accounts were disputed. We have jurisdiction under 28 U.S.C. § 1291 . We reverse the district court’s grant of summary judgment and remand for further proceedings.

The FDCPA provides that a debt collector may not communicate “to any person credit information which is known or which should be known to be false, including the failure to communicate that a disputed debt is disputed.” 15 U.S.C. § 1692e(8). The CCRAA prohibits any person from furnishing information “to any consumer credit reporting agency if the person knows or should know the information is incomplete or inaccurate.” Cal. Civ.Code § 1785.25(a). “The statutory term ‘should have known’ imparts a test of reasonableness.” Shultz v. Dep’t of Army, 886 F.2d 1157, 1160 (9th Cir.1989) (interpreting…