- Lemberg Law
- What is a Class Action Lawsuit?
- National Tenant Network Alleged Fair Credit Reporting Act (FCRA) Violations
Clermont v. National Tenant Network
Case Information
- Case Number: 2:23-cv-03545-MCA-LDW
- Case Status: Class Certified; Litigation Ongoing
- Court: United States District Court, District of New Jersey
- Filed: January 23, 2024
This class-action lawsuit alleges that National Tenant Network, Inc. and its franchisee LCIJ, Inc. violated the Fair Credit Reporting Act (FCRA) by unlawfully furnishing consumer reports to unverified third parties. These reports, distributed as promotional postcards, contained sensitive information that was not authorized for release, causing harm to consumers’ reputations and emotional well-being.
Key Allegations
The lawsuit highlights several significant issues with the defendants’ practices, including:
- Unlawful Disclosure of Consumer Reports:
- Defendants allegedly distributed postcards containing personal and sensitive consumer information, such as eviction filings, to potential clients without verifying their identity or intended use of the information.
- These postcards included defamatory language, characterizing individuals as “trouble tenants” without their knowledge or consent.
- Failure to Comply with FCRA Requirements:
- Under the FCRA, consumer reporting agencies must verify the identity of users and ensure reports are used for legitimate purposes. The defendants allegedly failed to meet these obligations before disseminating the reports.
- Emotional and Reputational Harm:
- The distribution of these reports caused affected individuals to suffer emotional distress, including anxiety, frustration, and embarrassment, as well as harm to their reputations.
- Reckless Business Practices:
- Despite promoting compliance with FCRA regulations on their website, the defendants allegedly ignored these standards in practice, recklessly using personal data for advertising purposes.
Relief Sought
The plaintiff seeks remedies for the alleged violations, including:
- Statutory Damages: Compensation of $100 to $1,000 per violation.
- Actual Damages: Reimbursement for harm caused by the unlawful disclosure of sensitive information.
- Punitive Damages: Penalties to deter future misconduct.
- Attorneys’ Fees and Costs: Legal expenses incurred by the class members.
Class Certification Ruling (January 23, 2026)
On January 23, 2026, the Court granted Plaintiff’s Motion for Class Certification under Federal Rule of Civil Procedure 23(b)(3). The Court held that the claims satisfy numerosity, commonality, typicality, adequacy, predominance, and superiority, and that liability issues can be resolved using common, class-wide evidence.