Northrop v. Hoffman of Simsbury, Inc.

When Deborah Northrop (plaintiff) was applying for a mortgage from the company Mortgage Master to refinance her home, Mortgage Master obtained her credit report, which showed a recent inquiry from Hoffman of Simsbury, Inc., d/b/a Hoffman Honda of Avon (Hoffman) (defendant). Northrop had never done any business with Hoffman. Upon Mortgage Master’s demand that Northrop explain the inquiry, Northrop called Hoffman to ask about it. Initially, Hoffman provided no response. Later, Hoffman told Northrop that its records had been destroyed and stopped returning her calls. Northrop sued Hoffman and others (defendants) in federal court, claiming that they had interfered with her ability to secure a mortgage and caused emotional distress. Northrop alleged that the defendants were liable under § 1681n of the Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., on account of violations of FCRA §§ 1681b, c, and/or e. Northrop also stated claims under the Connecticut Unfair Trade Practices Act, Conn. Gen. Stat. § 42-110a et seq. The defendants moved to dismiss pursuant to Rule 12(b)(6) of the Federal Rules of Civil Procedure (FRCP). The district court granted the motion to dismiss on the ground that FCRA §§ 1681b, c, and e applied only to “consumer reporting agencies.” The court declined to exercise supplemental jurisdiction over Northrop’s state law claims. Northrop appealed.