A plaintiff suing under the Fair Credit Reporting Act (FCRA) need not prove actual damages as a result of a willful violation in order to recover statutory damages, according to the Eleventh Circuit, joining several other circuits in that conclusion. Santos v. Healthcare Revenue Recovery Group, LLC, 2023 WL 7289662(11th Cir. Nov. 6, 2023). The…
Tag: Fair Credit Reporting Act (FCRA)
Summary Judgment for Creditor on FCRA Claim Arising Out of Impersonation of Cardholder
An employee of Shelly Milgram’s interior-design business opened up three personal credit cards in Milgram’s name, without Milgram’s authorization. The employee made charges on those cards—one of which was a Chase card—and on a Chase business card in Milgram’s name, without Milgram’s permission. The employee paid the resulting bills from a bank account owned by…
Credit Reporting Agency’s Procedures and Investigation to Ensure FCRA Accurate Reporting Not Reasonable Enough for Summary Judgment
In Losch v. Nationstar Mortgage LLC, 2021 WL 1653016 (11th Cir. Apr. 28, 2021), the Eleventh Circuit considered whether the defendant Experian violated the Fair Credit Reporting Act’s requirements that a credit-reporting agency employ “reasonable procedures to assure maximum possible accuracy of the information concerning the individual” when preparing credit reports, 15 U.S.C. § 1681e(b),…
Loan Servicer’s “Obvious” Willful Violation of the Fair Credit Reporting Act Warrants Revival of Plaintiffs’ Claims for Emotional-Distress and Punitive Damages
Last week, in Marchisio v. Carrington Mortgage Services, LLC, 2019 WL 1320522 (11th Cir. Mar. 25, 2019), the Eleventh Circuit, taking a somewhat exasperated tone, addressed claims against a mortgage servicer whose repeated misreporting of a consumer account—even after a history of litigation and two settlement agreements—was an “obvious” violation of the Fair Credit Reporting…
Bank Accurately Reported Mortgage as “Past Due” and “Delinquent” Despite Borrower’s Compliance with Forbearance Program
When a mortgage lender offers a borrower a forbearance plan—agreeing to accept lowered monthly payments in exchange for refraining from foreclosure—is it accurate for the lender to report that the borrower’s account is “past due” and “delinquent” even when the borrower complies with the plan? “Yes” was the Eleventh Circuit’s answer in Felts v. Wells…
No Willful Violation of Fair Credit Reporting Act If Report Technically Accurate, Even If Misleading, Given Split on “Maximum Possible Accuracy”
In Pedro v. TransUnion LLC, 2017 WL 3623926 (11th Cir. Aug. 24, 2017), the Eleventh Circuit concluded that a consumer reporting agency did not adopt an “objectively unreasonable interpretation” of the Fair Credit Reporting Act (“FCRA”) when it stated on a consumer’s credit report that she was an authorized user of her parents’ credit card…
“Gateway” Issue Delegation to an Arbitrator is Enforceable, Without Qualifications; Circuit Split Noted
The Eleventh Circuit enforced an employment-related arbitration agreement’s provision delegating to the arbitrator “gateway” questions of arbitrability in Jones v. Waffle House, Inc., 866 F3d 1257 (11th Cir. Aug. 7, 2017). The opinion, written by Judge Marcus and joined by Judge Hull and Judge Clevenger visiting from the Federal Circuit, also rejects the notion, adopted by the…
A Furnisher of Credit Data Must Make a Reasonable Investigation in Response to an Indirect Dispute, and Review of “Account-Level Documentation” May Be Required
In Hinkle v. Midland Credit Management, Inc., 2016 WL 3672112 (11th Cir. July 11, 2016), the Eleventh Circuit, addressing an issue of first impression, reversed summary judgment in favor of a credit data furnisher—a “down-the-line” buyer of charged-off debt—which had not requested or reviewed underlying account information after receiving a dispute from a consumer reporting…