Tag Archives: Fair Credit Reporting Act

“Stand-Alone” REALLY Does Mean Stand-Alone and the Quest for Clarity

Ninth Circuit Court of Appeals interprets the FCRA[1] On January 29, 2019, the Ninth Circuit Court of Appeals issued a far-reaching opinion that will likely impact the hiring process of prospective employers who conduct background checks on applicants. Desiree Gilberg (“Gilberg”) brought a class action suit against prospective employers (collectively, “CheckSmart”) alleging violations of the … Continue reading this entry

Standing in False Advertisement Cases is Clarified in the Ninth Circuit

Recent decisions by and within the Ninth Circuit Court of Appeals elucidate the contours of Article III standing when plaintiffs seek injunctive relief in false advertising cases despite already having awareness of the claimed false advertising of the product. Although these decisions present a threat of coaching plaintiffs to navigate through potential standing pitfalls in … Continue reading this entry

On Remand From Supreme Court in Spokeo, Ninth Circuit Holds FCRA Violation Satisfies Article III Standing

The Ninth Circuit finally weighed in again on Article III standing issues after the remand of the Spokeo case from the United States Supreme Court.  The Supreme Court in Spokeo, Inc. v. Robins, 136 S. Ct. 1540 (2016), addressed whether a willful violation of the Fair Credit Reporting Act (“FCRA”), absent proof of actual damages, … Continue reading this entry

Supreme Court Vacancy Leaves Spokeo Outcome Even More Uncertain

The consumer financial services industry is wondering how the sudden passing of United States Supreme Court Justice Antonin Scalia will affect the pending Spokeo, Inc. v. Thomas Robins case. Spokeo is a key case dealing with whether a class action lawsuit may be brought by a consumer who suffered no actual injury, based solely on a claimed … Continue reading this entry

Reply Brief filed in Spokeo v. Robins – Oral Argument next on Nov. 2

In its reply brief in Spokeo v. Robins, petitioner Spokeo comes out of the gate with the consequential argument that for Robins to prevail, the Supreme Court must accept his position that every violation of a statutory right qualifies as an injury-in-fact. Indeed, the case is much larger than Fair Credit Reporting Act (FCRA) inaccuracies … Continue reading this entry

Response from Robins in the Spokeo Case at the U.S. Supreme Court

This week, the respondent in Spokeo v. Robins filed his merits brief. The main thrust of the brief challenges Spokeo’s assertion that Robins lacks standing without “real-world” injury. Instead Robins argues that he meets the Constitution’s “Case and Controversy” requirement on one of several bases to vindicate his statutory rights under the Fair Credit Reporting Act … Continue reading this entry

U.S. Supreme Court Accepts Review of Robins v. Spokeo, Inc.

The Supreme Court recently accepted review of one of the most talked about privacy class action and consumer cases of the past year, Robins v. Spokeo, Inc., No. 13-1339 (U.S.). The issue before the Court is whether Congress can confer Article III standing on a plaintiff who suffers no concrete harm, but who can recover … Continue reading this entry

Ninth Circuit Remands FCRA Case – Actual Injury Not Required for Article III Standing

On Tuesday, the Ninth Circuit remanded Robins v. Spokeo, Inc., Case No. 2:10-cv-05306-ODW-AGR on the basis that the district court erred in finding that the Plaintiff, Thomas Robins (“Robins”), did not have Article III “injury-in fact” standing to file his suit alleging violations of Fair Credit Reporting Act (“FCRA”) §§1681b(b)(1), 1681e(b), and 1681j(a).… Continue reading this entry

As the CFPB Turns ... And Other Consumer Financial Services News

In this week’s episode of As the CFPB Turns questions remain regarding Director(?) Richard Cordray’s constitutional authority to act as the Director of the CFPB.  House Financial Services Committee Chairman, Jeb Hensarling, R-Texas, advised Cordray that the D.C. Circuit’s recent decision, which found that President Obama’s recess appointments to the National Labor Relations Board were … Continue reading this entry

Is Your Company Using the Right Form for Background Checks?

The Consumer Financial Protection Bureau (the “Bureau”) has taken over rulemaking and enforcement responsibilities for the Fair Credit Reporting Act (“FCRA”) and has updated an important FCRA form that employers must use when utilizing consumer reports in conducting background investigations of prospective and current employees. Employers must use the new form beginning in January. The FCRA … Continue reading this entry

Seventh Circuit Holds State Law Claims for Wrongful Furnishing are Preempted by FCRA

The U.S. Court of Appeals for the Seventh Circuit recently opined that consumers are barred from asserting state common law claims based on inaccurate information furnished to a consumer reporting agency. The Court held that state law causes of action for wrongful furnishing are preempted by the federal Fair Credit Reporting Act (FCRA), and claims for wrongful furnishing under FCRA may … Continue reading this entry

1st Circuit Stands Firm On Notice Pleading Standard For FCRA Claims

The Fair Credit Reporting Act (FCRA), 15 U.S.C. § 1681 et seq., was designed to ensure that consumer reporting agencies (CRAs) – like Experian, TransUnion and Equifax – fairly and accurately report information relevant to consumer credit worthiness. The FCRA requires CRAs – which are, essentially, warehouses of consumer credit information – to provide consumers with … Continue reading this entry

The Ninth Circuit Permits Cumulative Recovery Under the FDCPA and California's Rosenthal Act

The recent Ninth Circuit decision, Gonzalez v. Arrow Financial Services, LLC, — F.3d —, 2011 WL 4430844 (9th Cir Sept. 23, 2011), addresses several issues relating to claims brought under the Fair Debt Collection Practices Act (“FDCPA”) and examines that statute’s interaction with the corresponding California debt collection statute, the Rosenthal Act.… Continue reading this entry

Third Circuit Clarifies Furnisher Liability Under FCRA

Last week the United States Court of Appeals for the Third Circuit clarified the requirements for bringing a Fair Credit Reporting Act case for faulty credit reporting. Michelle SimmsParris is a New Jersey lawyer who allegedly made a couple of late payments on her mortgage loan from Countrywide Home Loans. In February 2008, SimmsParris learned that … Continue reading this entry

Federal Reserve Board and FTC Amend Adverse Action and Risk-Based Pricing Notice Requirements

As mandated by Section 1100F of the Dodd-Frank Wall Street Reform and Consumer Protection Act, new final rules issued by the Federal Reserve Board and the Federal Trade Commission (FTC) require creditors to disclose credit scores and information about credit scores to applicants for credit in adverse action and risk-based pricing notices.  Creditors who use credit scores … Continue reading this entry

Eighth Circuit Upholds FCRA Summary Judgment Ruling In Favor Of Mortgage Company

This week the Eighth Circuit affirmed a Minnesota district court order granting summary judgment to a mortgage company, holding that it complied with all of its responsibilities under the Fair Credit Reporting Act (“FCRA”), 15 U.S.C. 1681s-2(b), because it investigated dispute notices sent to it by credit reporting agencies and verified the plaintiff’s account was being reported correctly. Anderson v. … Continue reading this entry

Federal Circuit Holds Sovereign Immunity Waived for FCRA Claims

In Bormes v. United States, the Federal Circuit held that the Federal Government has waived its sovereign immunity for claims arising under the Fair Credit Reporting Act (“FCRA”). The plaintiff, an attorney, filed an unrelated lawsuit on behalf of one of his clients using the United States District Court for the Northern District of Illinois’ electronic filing … Continue reading this entry

Fourth Circuit Holds State Law Claims Preempted by FCRA Because Sloppy Recordkeeping and Repeated Mistakes Do Not Amount to Malice

In Ross v. Federal Deposit Insurance Corp., No. 08-1851, 2010 WL 4261819 (4th Cir. Oct. 29, 2010), the U.S. Court of Appeals for the Fourth Circuit affirmed the grant of summary judgment in favor of Washington Mutual Bank (“WaMu”) and against Charlotte Ross who alleged common law defamation claims, violations of the Fair Credit Reporting … Continue reading this entry

Third Circuit Decides Case at the Intersection of the FCRA and Patriot Act

In Cortez v. Trans Union LLC, the United States Court of Appeals for the Third Circuit decided a case at the intersection of the Fair Credit Reporting Act (FCRA) and the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, better known as the USA PATRIOT Act … Continue reading this entry

Ninth Circuit Dismisses Claims Under the CCRAA

In Carvalho v. Equifax Information Services, LLC, No. 09-15030, 2010 W.L. 3239477 (9th Cir., Aug. 18, 2010), the Ninth Circuit affirmed a lower court’s grant of summary judgment dismissing Plaintiff’s claims under the California Consumer Credit Reporting Agencies Act (“CCRAA”). The Plaintiff alleged that three credit reporting agencies, Equifax Information Services, LLC (“Equifax”), Experian Information … Continue reading this entry

The First Circuit Confirms FCRA Private Right of Action Against Furnishers of Credit Information

Wen Chiang succeeded on the law but failed on the facts in his Fair Credit Reporting Act claim against Verizon. In Chiang v. Verizon New England Inc., Case No. 09-1214 (lst Cir., Feb. 9, 2010), Chiang claimed that Verizon failed to investigate adequately his disputes about the telephone bill payment information it furnished to the … Continue reading this entry

Class Action Lawsuit Over freecreditreport.com

A Wisconsin college student has filed a seven count class action complaint against Experian for its freecreditreport.com ads. The Plaintiff alleges that she was in the midst of purchasing a new car and wanted to check her credit. She claims that in March 2008, she went to freecreditreport.com for a single (but free) credit report … Continue reading this entry

United States Supreme Court Recognizes Rise In Consumer Credit Litigation

Each year, Chief Justice John Roberts. Jr. issues a report about the state of the federal judiciary. For 2009, Justice Roberts reported a 6% year-to-year decline in filings in the Supreme Court and federal courts of appeals. The federal district courts saw a 3% increase in filings over 2008 filings, up to 276,397 filings in … Continue reading this entry

Ninth Circuit Issues Mixed Opinion On Credit Reporting Laws

In Gorman v. Wolpoff & Abramson, LLP & MBNA America Bank N.A., No. 06-17226 (Oct. 21, 2009), the Ninth Circuit Court of Appeals issued a mixed opinion on claims of violations of the Fair Credit Reporting Act (“FCRA”) and a California statutory counterpart, and of common law libel.… Continue reading this entry