9th Circuit Revives FCRA Lawsuit Against Credit Bureau

9th Circuit Reverses Judgment in FCRA Case Against Credit Reporting Agency

• The United States Court of Appeals for the 9th Circuit reversed a summary judgment in favor of a credit reporting agency. This agency had continued to report loans that had been serviced by a now-defunct payday loans service.
• According to JDSupra.com, a consumer alleged that the credit reporting agency violated the Fair Credit Reporting Act (FCRA). The agency failed to follow procedures to “assure maximum possible accuracy in her credit report.”
• After the payday loan service went out of business, the loan officer contacted the credit reporting agency. They informed the agency that they would discontinue using the services provided by the credit reporting agency. However, the agency only removed some of the loans from the credit reports.
• The reversal of the summary judgment grant also led to the vacating of the lower court’s orders. These orders had denied the consumer’s motions for partial summary judgment and class certification. The Ninth Circuit remanded the lawsuit for further proceedings.

Conclusion:

In a significant development, the United States Court of Appeals for the Ninth Circuit has reversed a summary judgment in a Fair Credit Reporting Act (FCRA) case. The case involves a consumer’s claim that a credit reporting agency failed to ensure the accuracy of her credit report by continuing to report loans serviced by a now-defunct payday loans service. Despite being informed of the discontinuation of services, the agency only partially removed the loans from the credit reports. This reversal has also led to a reconsideration of class certification, highlighting the importance of accurate credit reporting and consumer rights in the financial industry.

 

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