GREGORY, S.D.— A South Dakota woman claims in court that her entire community knows about her financial troubles because a credit union gave copies of her credit report to a class of 26 high school students.
Plaintiff Terri McFayden alleges she contacted Consumer's Federal Credit Union to see if she and her husband could take out a small loan to cover her two young children's medical bills, according to a report by Court House News Service. After reviewing her credit, the credit union’s CEO, Sara Zimbelman, allegedly told McFayden she did not qualify for a loan, according to the suit.
Just two days after the credit union declined the loan, the suit alleges that McFayden shared her credit report with a class of 26 high school students.
Court House News Service reported that “although the credit report was ‘partially redacted,’ McFayden's name, address, partial Social Security number and a ‘substantial amount of credit information’ was still visible on the report, McFayden alleges.”
Court House News Service further reported that after handing out the copies, Zimbelman allegedly made "derogatory remarks" about McFayden's credit history.
In her complaint, McFayden claims she has experienced "extreme emotional distress as a result of the widespread knowledge throughout her community regarding her private information and financial struggles.”
She is suing for violations of the Fair Credit Reporting Act and intentional infliction of emotional distress. She also seeks punitive damages, according to Court House News Service.