In this article, the authors examine a recent decision by the U.S. Court of Appeals for the Third Circuit finding that reporting a delinquent pay status with a zeroed-out balance where a past due account has been transferred is neither inaccurate nor misleading under the Fair Credit Reporting Act.

In Bibbs v. TransUnion LLC, the U.S. Court of Appeals for the Third Circuit (“Third Circuit”) affirmed the orders of the U.S. District Court for the District of Pennsylvania (“District Court”) granting TransUnion’s motions for judgment on the pleadings and dismissing the complaints in three separate actions by Marissa Bibbs, Michael Parke, and Fatoumata Samoura (collectively, “Appellants”) for violations of the Fair Credit Reporting Act (“FCRA”).

Originally published in the January 2023 edition of Pratt’s Journal of Bankruptcy Law (Vol. 19, No. 1).