On May 26, preliminary approval was sought to resolve a proposed class action, pending in the U.S. District Court for the District of Minnesota, against background screening company Inflection Risk Solutions LLC (Inflection). The proposed settlement seeks to resolve claims that Inflection violated the Fair Credit Reporting Act by allegedly reporting misdemeanor convictions as felonies
On May 26, California Supreme Court ruled that the Federal Trade Commission’s (FTC) “Holder Rule” does not limit the award of attorneys’ fees where a consumer seeks fees from a holder under a state prevailing party statute.
The Holder Rule and Previous California Precedent
The FTC’s Holder Rule permits consumers to bring any legal claims
On May 5, the Consumer Financial Protection Bureau (CFPB or Bureau) and the Federal Trade Commission (FTC) together filed an amicus brief in an appeal pending before the Court of Appeals for the Second Circuit, Sessa v. Trans Union, LLC, No. 22-87 (2d Cir. 2022). The agencies argue that the Fair Credit Reporting Act
On May 3, Judge Grimm of the U.S. District Court for the District of Maryland issued a class certification decision in a consumer data breach multidistrict litigation case against an international hotel and resort management company, becoming one of the few district courts to certify Rule 23(b)(3) classes in this type of case. The litigation
On April 7, the Consumer Finance Protection Bureau (CFPB or Bureau) filed an amicus brief in an appeal, pending before the Court of Appeals for the Eleventh Circuit in which the Bureau argued that the Fair Credit Reporting Act (FCRA) does not exempt furnishers from investigating disputes based on legal questions as opposed to factual
On March 18, the District Court for the Southern District of Texas entered an injunction against a credit repair organization, Turbo Solutions, Inc. d/b/a Alex Miller Credit Repair, and its owner Alex Miller for alleged violations of the FTC Act, Credit Repair Organizations Act (CROA), and the FTC’s Telemarketing Sales Rule (TSR). The complaint against
On March 22, California’s Fifth Appellate District Court of Appeals issued a decision on the availability of attorneys’ fees under the Federal Trade Commission’s (FTC) Holder Rule. This case follows recent FTC guidance and two decisions from California’s Second Appellate District Court of Appeals holding that the Holder Rule does not bar recovery of attorneys’
Last June, the Supreme Court issued a noteworthy decision in the TransUnion v. Ramirez case, holding that the vast majority of an 8,000-plus member Fair Credit Reporting Act (FCRA) class lacked standing because they had not suffered a concrete injury. TransUnion LLC v. Ramirez, 141 S. Ct. 2190 (2021). On February 3, after returning
In late January, the Consumer Financial Protection Bureau (CFPB) released its 2022 “List of Consumer Reporting Companies.” This list purports to give consumers “the details [they] need to take action” against companies that collect consumer information and prepare consumer reports. According to the CFPB’s accompanying press release, the list is intended to
According to a recent year-in-review report by WebRecon, Fair Credit Reporting Act (FCRA) filings continued their upward trajectory throughout 2021. This stands in contrast to filings under the Fair Debt Collection Practices Act (FDCPA) or the Telephone Consumer Protection Act (TCPA), which decreased from the previous year. Meanwhile, complaints filed with the CFPB increased substantially
