The New York Department of State’s Division of Consumer Protection recently implemented an “Identity Theft Prevention and Mitigation Program” and adopted emergency regulations, effective immediately. According to the Division, the program is intended to “(1) inform consumers about how to protect their personal identifying information; (2) help consumers prevent identity theft, including taking steps to
Cursory Investigations and Misleading Reporting Leads to Partial Summary Judgment Win for Consumer
A recent federal court decision granting summary judgment to a plaintiff on a claim that a lender violated the Fair Credit Reporting Act (the “FCRA”), 15 U.S.C. § 1681 et seq., by failing to conduct a “reasonable” investigation of a credit reporting dispute – an issue normally reserved for a jury – illustrates the difficulty
Starbucks Hit with FCRA Class Action
Starbucks Corp. has been sued in a proposed class action in the Northern District of Georgia for alleged violations of the Fair Credit Reporting Act with its employment application process. Plaintiff Kevin Wills claims Starbucks rejected job applicants based on consumer reports without first providing a copy of the reports to the applicants and notifying
Federal District Court Sanctions CFPB for Failing to Provide Knowledgeable Deposition Witness
On August 25, 2017, the United States District Court for the Northern District of Georgia entered an order granting multiple Defendants’ consolidated motion for sanctions against the Consumer Financial Protection Bureau. Defendants’ Rule 37 motion alleged the CFPB failed to produce a knowledgeable deposition witness and also failed to follow the Court’s various orders to
CFPB Shuts Down Credit Repair Company for Charging Illegal Fees
A California district court approved a settlement between Prime Marketing Holdings LLC and the Consumer Financial Protection Bureau, whereby Prime Marketing agreed to pay $150,000 and be banned from offering credit repair services. The settlement was a result of the CFPB’s September 2016 suit against Prime Marketing for allegedly misleading consumers and charging
Ninth Circuit Upholds $430,000 Jury Verdict in FCRA Case Against Auto Finance Company
The Ninth Circuit upheld a $430,000 jury verdict on a Fair Credit Reporting Act claim related to an auto finance company’s alleged failure to investigate an identity theft claim. The plaintiff, Seungtae Kim, alleged that he suffered damage to his credit and emotional distress as a result of the company’s failure to adequately investigate his
Join Us for a Webinar on August 24 – A Review of Recent FCRA Trends and Developments
Join Troutman Sanders attorneys David N. Anthony, Cindy D. Hanson and Meagan A. Mihalko for a timely discussion of recent case studies and case law developments affecting the credit reporting and background screening industry. The discussion will include an update on the effects of Spokeo, as well as an overview of other recent
Fifth Circuit Affirms FDCPA Violation Where Debt Collector Failed to Mark Account as Disputed
The Fifth Circuit Court of Appeals recently affirmed summary judgment on a Fair Debt Collection Practices Act claim in favor of a debtor, finding that the debt collector violated the FDCPA when it failed to mark the debtor’s account as “disputed” when the collector reported the account to the bureaus.
Plaintiff Robert Sayles sued Advanced
Spokeo Strikes Again: Fourth Circuit Reverses and Dismisses $12 Million FCRA Class Action on Spokeo Grounds
In one of the most significant post-Spokeo decisions to date, the Fourth Circuit unanimously reversed and dismissed a nearly $12 million Fair Credit Reporting Act (“FCRA”) class action judgment, finding plaintiff, Michael T. Dreher, lacked Article III standing to bring his claims. The decision provides much needed clarity from the Fourth Circuit on the
Health Care Management Company Sued in FCRA Class Action
Lawsuits under the Fair Credit Reporting Act resulting from allegedly inaccurate background checks do not appear to be going away. Just last week, plaintiff Michelle Petry filed a class action against IDE Management d/b/a Cathedral Health Care Centers, in the Southern District of Indiana, claiming that she was denied a job as a