In Miles v. The Company Store, consumer Timothy Miles brought a claim in state court against retailer The Company Store for alleged violations of the federal Fair Credit Reporting Act. Specifically, Miles claimed that The Company Store violated 15 U.S.C. § 1681c for printing too many digits of his credit card number on his
District Court Skeptical of Consent to Obtain Consumer Report
The District Court for the District of Nevada recently addressed the reach of a consumer’s written authorization to obtain a consumer report under the Fair Credit Reporting Act. In Rodriguez v. Your First Choice, LLC, it implicitly limited a business’s ability to obtain a report based on “written authorization” to situations when a permissible
Congress Kills CFPB’s Arbitration Ban for Financial Services Companies, Returning Focus to State v. Federal Court Wars
On Tuesday, October 24, 2017, the Senate voted to nullify the Consumer Financial Protection Bureau’s (“CFPB”) arbitration rule (the “Rule”) in a 51-50 vote. Only two Republicans voted against the measure – Lindsey Graham (SC) and John Kennedy (LA). President Trump praised the vote, saying that he will sign the resolution when it reaches his
District Court Rejects FCRA Class Action Settlement for Lack of Standing
In Robertson v. Allied Solutions, LLC, plaintiff Shameca Robertson brought a class action claim in the Southern District of Indiana against Allied Solutions under the Fair Credit Reporting Act. In the complaint, Robertson asserted two claims against Allied Solutions: (1) that the company failed to provide her with an FCRA-compliant disclosure informing her that
CFPB Issues Guidance to Small Businesses on Complying With Rule Banning Class Action Waivers
On July 10, the Consumer Financial Protection Bureau issued its long-awaited final Rule banning class action waivers in arbitration provisions for covered entities, as well as requiring the covered entities to provide information to the CFPB regarding any efforts to compel arbitration. This Rule is of significance to any financial services company that utilizes consumer
No Vacancy – Court Denies Class Certification in FCRA Case Against Hyatt
On March 13, 2017, Carlos Guarisma filed a class action complaint against Hyatt Equities, alleging violation of the Fair Credit Reporting Act. The complaint alleges that Hyatt printed more than the last five digits of customers’ credit card numbers on hotel receipts. Guarisma sought to represent a class of Hyatt hotel guests. This
U.S. Chamber of Commerce and Other Business Associations Sue to Overturn Ban on Class Action Waivers
The U.S. Chamber of Commerce and other business groups have filed a federal lawsuit seeking to invalidate the Consumer Financial Protection Bureau’s Rule banning class action waivers in arbitration provisions contained in financial institutions’ contracts with consumers. Compliance with the Rule would be required beginning March 19, 2018. The lawsuit was filed in the United
District Court Denies Motion to Strike in FCRA Background Check Class Action
In Fosbrink v. Area Wide Protective, Inc., William Fosbrink sued defendant Area Wide Protective in a class action complaint for allegedly violating the Fair Credit Reporting Act’s provisions regarding employment background checks. According to Fosbrink, Area Wide violated the FCRA in three ways: (1) it failed to provide him with a stand-alone disclosure informing
West Virginia Federal Court Preliminarily Approves Nearly $30M TCPA Class Action Settlement
In re Monitronics International, Inc., pending in the Northern District of West Virginia, is a consolidated class action lawsuit brought under the Telephone Consumer Protection Act. After years of contentious litigation, this past week the Court preliminarily approved a class action settlement of $28 million. This significant settlement serves as another example of the high
Bill to Cap FCRA Liability Gets Hearing Before Congressional Subcommittee
This past May, Rep. Barry Loudermilk (R-Ga.) introduced H.R. 2359, the FCRA Liability Harmonization Act, which would cap class action damages in Fair Credit Reporting Act claims at $500,000 or one percent of the defendant’s net worth, whichever is less, and eliminate punitive damages. Such changes would align the Fair Credit Reporting Act with numerous