A local disaster cleanup company has sued a credit rating agency for $3 million, accusing it of failing to correct mistakes that have resulted in lost business. DRC Emergency Services contends that Experian Information Solutions listed a pair of bankruptcies and multiple tax liens on DRC’s credit report. As a result, DRC was denied credit in June, according to the lawsuit filed in federal court in Mobile. DRC contends the bankruptcies and tax liens appear to belong to an unrelated company that uses the initials DRC as an abbreviation for its own name.
According to the lawsuit, it’s “undisputed that the information Experian had was incorrect” and that no other credit agency included the black marks on their reports. The civil Complaint contends that DRC disputed the information via email on June 17th, according to a process set up by Experian. The Plaintiff has alleged that the ratings firm took no action and did not respond to a request on July 6th for an update, and that Experian also failed to respond to a follow-up request on August 17th. The bad report has had real consequences, according to the suit.
The Complaint contends that DRC was denied credit in June and July when it attempted things like negotiating contracts to rent apartments for employees and establishing leasing accounts. The suit seeks $1 million in compensatory damages and $2 million in punitive damages. Founded in 1989 after Hurricane Hugo, DRC has worked extensively cleaning after natural disasters, from Hurricane Katrina to last year’s Haiti earthquake to recent tornadoes in Alabama and Missouri. Kip Sharpe, a lawyer from Mobile who is a graduate of Cumberland School of Law, represents DRC in this most interesting case.
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