The U.S. Court of Appeals for the Second Circuit recently ruled that a plaintiff who alleged that Experian had violated the Fair Credit Reporting Act by including  a discharged student loan debt on his credit report had not alleged an inaccuracy for purposes of the FCRA requirement that consumer reporting agencies (CRAs) follow reasonable procedures to assure the accuracy of information included in consumer reports. … Continue Reading

The CFPB has issued its “Annual report of credit and consumer reporting complaints” that reports on consumer complaints submitted to the CFPB regarding the three largest nationwide consumer reporting agencies (NCRAs)—Equifax, Experian, and TransUnion.  The annual report is required by the Fair Credit Reporting Act. 

The CFPB’s press release about the report includes a statement from Director Chopra indicating that the CFPB “will be exploring new rules to ensure that the [NCRAs] are following the law, rather than cutting corners to fuel their profit model.” … Continue Reading

The CFPB recently released two reports concerning tenant background checks.  One report, “Consumer Snapshot: Tenant Background Checks,” discusses consumer complaints received by the CFPB that relate to tenant screening by landlords.  The other report, “Tenant Background Checks Market,” looks at the practices of the tenant screening industry.… Continue Reading

The CFPB has issued a circular (2022-07) to address “shoddy investigation practices” and “affirm that neither consumer reporting companies nor information furnishers can skirt dispute investigation requirements.”  

The Fair Credit Reporting Act (FCRA) requires both consumer reporting agencies (CRAs) and furnishers of information to CRAs  to conduct a reasonable investigation when properly notified of a dispute about information furnished in a consumer report. … Continue Reading

The CFPB recently issued an advisory opinion to consumer reporting companies about their obligation to prevent obviously false “junk data” from appearing on consumers’ credit reports.  The opinion states that companies must take steps to reliably detect and remove logically inconsistent data from consumers’ credit reports such as information that is obviously impossible.… Continue Reading

If you’re collecting debt for nursing home care, you might want to double check who is responsible for payment.  Last week, in conjunction with a field hearing, the CFPB issued a new Consumer Financial Protection Circular and an Issue Spotlight on Fair Debt Collection Practices Act (FDCPA) and Fair Credit Reporting Act (FCRA) violations in connection with nursing home debt.  … Continue Reading

In Bibbs, the Third Circuit ruled that in determining whether a credit report is inaccurate or misleading under the FCRA’s “maximum possible accuracy” requirement, a district court should apply a “reasonable reader” standard.  After reviewing the background of Bibbs, we discuss the analysis that Bibbs requires a district court to perform in determining whether a credit report is inaccurate or misleading, how Bibbs broadly undercuts the claims of plaintiff’s lawyers in FCRA cases alleging pay status information is misleading, Bibbs’ implications for data furnishers that follow Metro 2 guidelines or other industry standards, and Bibbs’ impact on defendants’ litigation strategy and the threat of plaintiffs’ attorney fees.… Continue Reading

The CFPB recently published a report analyzing how certain actions announced earlier this year by the three largest national consumer reporting agencies—Equifax, Experian, and TransUnion—will affect people who have allegedly unpaid medical debt on their credit reports  The new report is the CFPB’s third report issued this year on medical debt.… Continue Reading

The U.S. Court of Appeals for the Third Circuit has ruled that in determining whether a credit report is inaccurate or misleading under the Fair Credit Reporting Act’s “maximum possible accuracy” requirement, a district court should apply a “reasonable reader” standard.  Ballard Spahr attorneys are currently representing clients in cases involving this legal issue.… Continue Reading

The CFPB announced last week that it has entered into a settlement with Hyundai Capital America (Hyundai) to resolve alleged violations of the Fair Credit Reporting Act and Regulation V arising from Hyundai’s reporting of information on vehicle retail installment contracts and leases to consumer reporting agencies (CRAs) from 2016 to 2020. … Continue Reading