$4.375M verdict: Loker Law holds BMO Bank accountable for failing to fix an admitted error that destroyed a client's credit.
SAN JOSE, CA, UNITED STATES, June 26, 2026 /EINPresswire.com/ -- Loker Law has secured a $4,375,000.00 jury verdict against BMO Bank, N.A. on behalf of a Bay Area small-business owner whose credit was upended by an error the bank admitted within 24 hours but left on her credit reports for more than seven months. The verdict reaffirms a principle at the heart of the Fair Credit Reporting Act and the California Consumer Credit Reporting Agencies Act: when a consumer reports an error, financial institutions must investigate honestly and act, not verify the error as accurate and wait for the consumer to sue.
Case number 24-cv-9225-NW, U.S. District Court for the Northern District of California
The plaintiff, Solmaz Dehcheshmeh, was inadvertently added to a $1 million-plus mortgage she never agreed to and never signed for. BMO acknowledged the mistake almost immediately and confirmed she should never have been on the loan, yet the tradeline stayed on her credit reports while BMO verified it as accurate, even after she formally disputed it with Equifax, Experian, and Trans Union. Her credit score plunged from roughly 750 to under 600, she was denied credit sixteen separate times, and she was forced to shelve the flagship app she had spent years building, pivot her startup to a stopgap product, and pile on high-interest personal debt to keep her business alive. The strain extended a course of treatment that had been scheduled to end, escalating into severe anxiety, sleepless nights, and a panic attack.
This verdict sends a clear message to the banking and credit-reporting industries: admitting an error is not enough. When a consumer disputes inaccurate information, institutions must conduct real, meaningful investigations and correct the record promptly, before a family's financial life and a small business are put at risk.
About Loker Law
Loker Law, APC is a leading law firm dedicated to representing consumers impacted by identity theft, fraud, and inaccurate credit reporting. Founded in 2019 and headquartered in Arroyo Grande, CA, Loker Law is committed to delivering exceptional advocacy and restoring the dignity, financial stability, and peace of mind of its clients.
Matthew Loker
Loker Law, APC
+1 805-669-9844
matt.loker@loker.law
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