All three credit bureaus also named — and their dispute responses raise eyebrows
Mr. Cooper and JPMorgan Chase are facing a federal lawsuit over allegations they failed to update a borrower's credit reports after her bankruptcy discharge.
Sharon Norris, a Houston homeowner, filed the suit on March 20, 2026, in the U.S. District Court for the Southern District of Texas. The case names Nationstar Mortgage LLC d/b/a Mr. Cooper, JPMorgan Chase Bank, N.A., and all three major credit bureaus — Equifax, Experian, and Trans Union — as defendants under the Fair Credit Reporting Act.
According to the filing, Norris held a home mortgage that was later acquired by Mr. Cooper, along with an auto loan through JPMorgan Chase. She filed for Chapter 13 bankruptcy in April 2020 and received her discharge on March 27, 2025. Both the mortgage and the auto loan were excepted from discharge, meaning she stayed on the hook for those debts — and, according to the filing, made timely payments on both accounts throughout the bankruptcy.
The trouble began in October 2025, when Norris pulled her credit reports and found that all three bureaus were still tagging her accounts as "derogatory" with bankruptcy remarks attached — months after the discharge. Under the Metro 2 reporting standards, which the credit industry treats as its compliance rulebook, furnishers and bureaus are expected to remove bankruptcy references once a consumer is discharged and update the account coding to reflect the new status.
According to the filing, that did not happen here.
Norris sent dispute letters to all three bureaus in November 2025. What came back was a patchwork of responses that, read together, paints a striking picture of inconsistency. Equifax corrected the Mr. Cooper mortgage tradeline, removing the bankruptcy flags and updating the status, but left the JPMorgan Chase auto loan untouched with no explanation. Experian made no corrections and instead deleted the mortgage tradeline entirely — even though Equifax had already shown it could be fixed. Trans Union deleted the auto loan from the report altogether without, according to the filing, contacting JPMorgan Chase or conducting any investigation.
The suit alleges that the bureaus failed to follow reasonable procedures to ensure accuracy and did not conduct proper reinvestigations after being put on notice. Mr. Cooper and JPMorgan Chase, as the furnishers of the data, are alleged to have failed to investigate the disputes and update their own records.
Norris is seeking actual, statutory, and punitive damages, along with a court order requiring all five defendants to cooperatively correct her credit history. She has requested a jury trial.
The case remains in its earliest stage. No responsive pleadings have been filed, no court rulings have been issued, and none of the allegations have been tested or adjudicated.
For mortgage servicers, the case is a practical reminder that the window right after a borrower's Chapter 13 discharge is a critical compliance moment. The Metro 2 standards spell out exactly what updates need to happen, and the Fair Credit Reporting Act gives consumers a cause of action when those updates fall through the cracks. Getting it wrong can mean a federal lawsuit — and the kind of attention no servicer wants.
