In a compelling legal battle that highlights the intricacies of credit reporting and debt collection, a Sacramento resident has taken legal action against a Minnesota-based corporation for alleged misconduct. Sasan A. Raoufi filed a complaint in the Superior Court of California, County of Sacramento, on April 24, 2025, accusing IC Systems, Inc. of multiple violations including negligence and invasion of privacy.
The case revolves around Raoufi’s claims that IC Systems inaccurately reported debts to credit agencies, leading to significant financial and emotional distress. According to the complaint, Raoufi opened a utility account with Sacramento Municipal Utility District (SMUD) for his business operations. However, due to financial hardships exacerbated by the COVID-19 pandemic, he vacated his commercial premises in August 2022. Despite this, SMUD allegedly failed to close his account properly and continued billing him erroneously. This inaccurate information was subsequently passed on to IC Systems, which reported three separate collection accounts totaling over $42,000.
Raoufi contends that after disputing these accounts starting in August 2024, IC Systems removed two smaller debts but persisted in reporting a $37,770 SMUD account despite repeated disputes and lack of validation. “IC System responded only with a SMUD billing ledger containing accounting errors and contradictory data,” states the complaint. This ongoing misreporting led to multiple credit denials from institutions like Wells Fargo and Capital One between January and April 2025.
The plaintiff accuses IC Systems of violating both the Fair Credit Reporting Act (FCRA) and the Fair Debt Collection Practices Act (FDCPA). The allegations include failing to conduct reasonable investigations into disputed information and continuing collection efforts without proper validation. Additionally, Raoufi claims that IC Systems’ actions resulted in emotional distress due to false representations of his financial status.
Raoufi seeks various forms of relief from the court including actual damages for financial losses incurred due to high-interest subprime loans he was forced to accept as well as statutory damages for each violation cited under FCRA and FDCPA. He also demands punitive-style damages for emotional distress caused by negligent infliction practices alongside injunctive relief prohibiting further erroneous reporting by IC Systems.
Representing himself pro se in this matter is Sasan Andre Raoufi while the presiding judge’s name remains unspecified within the document along with Case ID: 25CVG28268.
Source: 25CV028268_Sasan_Raoufi_v_IC_Systems_Complaint_County_of_Sacramento.pdf
