On February 7, 2018, the U.S. District Court for the Eastern District of Michigan denied a motion by the U.S. Department of Agriculture (“USDA”) to dismiss a lawsuit filed against the USDA seeking money damages for alleged violations of the Fair Credit Reporting Act (“FCRA”). In moving to dismiss, the USDA argued that the FCRA claim was barred by federal sovereign immunity. However, the court rejected that argument, holding that the U.S. Government had waived its sovereign immunity from actions seeking monetary relief for FCRA violations. As a result, the court held, it had subject matter jurisdiction over the FCRA claim. See Jones v. United States Dep’t of Agric., No. 17-11530, 2018 U.S. Dist. LEXIS 19886 (E.D. Mich. Feb. 7, 2018).
Category: Fair Credit Reporting Act
Federal Court Orders Loan Servicer to Comply with CFPB’s CID Investigating Potential UDAAP and FCRA Violations
On February 28, 2018, a Pennsylvania federal district court granted a petition by the CFPB to enforce a CID against a student loan servicer to investigate potential Unfair, Deceptive or Abusive Acts or Practices or violations of FCRA in CFPB v. Heartland Campus Solutions, ECSI. The court applied the Supreme Court’s Morton Salt test applicable to investigative demands, and ruled in the CFPB’s favor, marking a court victory for the Mulvaney-led CFPB in investigative efforts to enforce a CID against the loan servicer.
The United States District Court for the Western District of Washington held that before obtaining a consumer’s credit report, a third party judgment creditor must establish that the transaction at issue is a “credit” transaction under the Fair and Accurate Credit Transactions Act (“FACTA”) and Fair Credit Reporting Act (“FCRA”).
Online Services Companies Await Supreme Court Ruling on Standing to Bring Class Actions under Fair Credit Reporting Act
On November 2, 2015, the U.S. Supreme Court heard a contentious round of oral arguments in a case that may significantly change the landscape of consumer class actions.