Alabama Attorney General Steve Marshall recently filed a complaint against Scott’s Credit Repair and its owners, John C. Scott and Krystal Scott, in Montgomery, Alabama Circuit Court. The complaint alleged that “from beginning to end, the consumer experience with Scott’s Credit Repair is rooted in deception and illegality.” More specifically, the complaint alleged that the
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
Court Grants Summary Judgment to Thomson Reuters; Company Does Not Qualify as Consumer Reporting Agency
In Kidd v. Thomson Reuters, plaintiff Lindsay A. Kidd brought a Fair Credit Reporting Act putative class action claim against mass media and information firm Thomson Reuters after she was allegedly denied a job with the Georgia Department of Public Health based on criminal history information obtained by the Department from Thomson Reuters’ subscription-based
FCRA Suits Increase 60% from August to September
According to a litigation statistics report issued by WebRecon LLC, consumer lawsuits alleging violation of the Fair Credit Reporting Act increased by nearly 60% in September from the prior month. That increase “keeps it in line with the aggressive growth in recent years.”
FCRA filings increased 58.4% from 351 in August to 556 in September
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
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
NYDFS Directed to Regulate Consumer Reporting Agencies
On September 18, New York Governor Andrew Cuomo issued a press release directing the New York Department of Financial Services to impose new rules on consumer reporting agencies (“CRAs”). The new regulation would require CRAs to register with New York for the first time and comply with the state’s cybersecurity standard. The standard – which
FTC Says Its Focus Must Be on Instances of Real Harm to Consumers
In a September 19 speech at the Federal Communications Bar Association in Washington, FTC Acting Chairman Maureen K. Ohlhausen stated that the Commission should focus on addressing instances of “substantial consumer injury” in deciding which cases to pursue. Echoing (intentionally or not) the language of the Supreme Court’s foundational decision in Spokeo, Inc. v. Robins