FCRA -- 15 U.S.C. § 1681

In Janti v. Encore Capital Group, Inc. 2010 WL 3058260 (S.D.Cal. 2010), Judge Sammartino held that the Plaintiff stated a class action claim against a debt collector for allegedly collecting out-of-statute debt.  Judge Sammartino held that the Plaintiff had properly pleaded claims under the FDCPA and UCL, but not the FCRA, explaining that the least sophisticated consumer could have believed… Read More

In Green Tree Servicing, LLC v. Brough, --- N.E.2d ----, 2010 WL 2894888 (Ind.App. 2010), the Indiana Court of Appeal required arbitration of a FCRA claim because of the arbitration clause in the consumer contract and notwithstanding the consumer’s discharge of the debt in bankruptcy.  The Court of Appeal held:   We begin by determining whether the parties agreed in… Read More

In Chaing v. Verizon New England, Inc. – F.3d --, 2010 WL 431873 (1st Cir. 2010), the Court of Appeals for the First Circuit affirmed summary judgment in favor of Verizon based on its reinvestigation under FCRA, explaining:     This leaves the question of the extent of a furnisher's investigation obligation under § 1681s-2(b). The statute does not define… Read More

In Wang v. Asset Acceptance, L.L.C., 2010 WL 40984 (N.D.Cal. 2010), Judge Conti rejected Plaintiff's assertion that the duty to report accurate information information under Civil Code 1785.25(a) also includes the obligation to note an account as disputed, since such obligation is required by section 1785.25(c).  Judge Conti explained Here, in his second cause of action, Wang alleges that despite being… Read More

FCRA's pre-emptive reach is broad, preempting even California's Confidentiality of Medical Information Act.  The Court of Appeal in Brown v. Mortensen 2010 WL 324749 (2010) explained: As previously noted, we have found no cases addressing the interplay of the CMIA and the FCRA. However, multiple federal district courts have addressed the scope of FCRA preemption under section 1681t(b)(1)(F). For example, in Pirouzian… Read More

Here's the short ruling:  red-flag-rule-15-amended-order.   The FTC today issued an amended Red Flag Rule here.  The FTC also delayed its enforcement of the Rule until June 1, 2010:    FTC Extends Enforcement Deadline for Identity Theft Red Flags Rule. At the request of Members of Congress, the Federal Trade Commission is delaying enforcement of the "Red Flags" Rule until June… Read More

The Court of Appeals for the Ninth Circuit re-issued its Gorman decision, following re-hearing petitions filed by industry, with mere commentary in footnotes.  With these amendments, the panel unanimously has voted to deny Appellant’s petition for rehearing en banc and Appellee’s petition for panel rehearing and petition for rehearing en banc.  The full court has been advised of the petitions… Read More

In VanDyke v. Northern Leasing System, Inc., 2009 WL 3320464 (E.D. Cal. 2009), Judge Hollows held that a transaction for software to be used primarily in a small business was not subject to the FDCPA, explaining:   The amended complaint also concedes that plaintiff contracted with defendant to lease “virtual terminal software.” ( Id.) Although plaintiff does not specifically allege… Read More

In Beaudry v. Telecheck Services, Inc. , -- F.3d __, 2009 WL 2633205 (6th Cir. 2009), the Court of Appeals held that a FCRA plaintiff need not plead or prove actual damages -- e.g. denial of credit -- to recover for a willful violation of FCRA.   The Court of Appeals described Plaintiff's claim as follows: In 2007, Cheryl Beaudry sued the defendants, a… Read More

See the Complaint here. Read More

See the FTC's Press Release here. Read More

On July 1, and effective July 1, 2010, July 1, 2009 Inter-agency FACTA Rule 974 Fed. Reg. 31484 (2009) was issued defining the obligations imposed on furnishers of credit reporting information.   The history behind the July 1, 2009 Inter-Agency Rule is as follows. FACTA and Implementing Regulations   On December 4, 2003, Congress passed the Fair and Accurate Transactions Act, which amended the… Read More

In Pintos v. Pacific Creditor’s Association, Inc. --- F.3d ----, 2009 WL 1151800 (9th Cir. 2009), the Court of Appeals for the Ninth Circuit addressed whether a creditor of towing debt had a permissible purpose under FCRA to pull a credit report on the debtor.  The Court of Appeals held that the creditor did not, explaining:   To qualify under §… Read More

The 9th Circuit and a number of California Court of Appeal decisions have split on FCRA pre-emption of California's CCRAA.   We wrote about it here.  The parties have sought rehearing of Gorman in the 9th Circuit.  Some of the briefs are here:  MBNA's Brief on Rehearing; CDIA's Amicus Brief on Rehearing, CBA's Amicus Brief on Rehearing; Gorman's Opposition to Rehearing;… Read More

Six federal agencies issued a set of frequently asked questions (FAQs) today to help financial institutions, creditors, users of consumer reports, and issuers of credit cards and debit cards comply with federal regulations on identity theft and discrepancies in changes of address. The “Red Flags and Address Discrepancy Rules,” which implement sections of the Fair and Accurate Credit Transactions Act… Read More

In Pulliam v. American Express Travel Related Services Co., Inc., 2009 WL 1586012 (N.D.Ill. 2009), Judge Kennelly addressed whether a pro per Plaintiff stated a claim upon which relief could be granted under FCRA arising from the defendant’s purported access of Plaintiff’s credit report without a permissible purpose.  The issue before the District Court was whether FCRA permits a creditor… Read More

See the FTC's Press Release here Read More

The FTC recently added a web page to offer assistance to businesses attempting to comply with its Red Flag identity theft rules.   http://www.ftc.gov/redflagsrule Read More

In Marshall v. Swift River Academy, 2009 WL 1112768 (9th Cir. 2009), the Court of Appeals for the Ninth Circuit confirmed (for the third time) that 15 USC 1681s-2(a) affords no private right of action.    Marshall may not maintain a claim under the FCRA for violation of Section 1681s-2(a), which imposes certain duties on those who furnish information to… Read More

In Robinson v. Equifax Information Services, Inc. __ F.3d __ (4th Cir. 2009), the Court of Appeals for the Eight Circuit affirmed in part a jury verdict against a credit reporting agency for $200,000 in actual damages under FCRA.  The facts arose out of an identity theft situation:    In April 2000, Robinson discovered that a woman named Nicole Antoinette… Read More