Press Release: 2024-07-02
From the Web: Credit Report Lawsuits on the Rise
Litigation targeting credit reporting agencies is increasing, while financial institutions—including debt collectors—are being “bombarded” with disputes related to the Fair Credit Reporting Act, American Banker reports.
07/01/2024 2:20 P.M.
2 minute read
Fair Credit Reporting Act lawsuits are a growing trend in financial services litigation, between attention to the law from regulators and credit repair companies driving consumers to file suit via social media, according to a new report from American Banker.
The lawsuits often target credit reporting agencies including Experian, Equifax and TransUnion, while financial institutions are experiencing disputes from consumers claiming violations of the FCRA, according to the article.
“What’s driving this is the sheer number of hits for credit repair companies on YouTube, Instagram and social media,” Manny Newburger, founding shareholder and vice president at the law firm Barron & Newburger, P.C., told American Banker reporter Kate Berry.
The report also covers trends in credit reporting disputes logged on the Consumer Financial Protection Bureau’s consumer complaint database and increased regulatory oversight by the bureau.
FCRA claims increased by 4.2% to 546 claims in May compared to 524 claims in April, ACA International recently reported based on new stats from WebRecon. Compared to claims from Jan. 1 through May 31, 2023, FCRA claims increased 23.3%, from 2,226 to 2,744, during the same period in 2024.
ACA has also tracked FCRA dispute issues through judicial advocacy in cases on FCRA requirements for data furnishers when conducting dispute investigations.
ACA filed an amicus brief (PDF) in support of the defendants-appellees in Ritz v. Equifax Information Services LLC, Experian Information Solutions Inc., TransUnion LLC and Nissan Infiniti LT.
The brief by Brownstein Hyatt Farber Schreck LLP was filed on behalf of ACA and Nissan through the Industry Advancement Fund. It argues for the 3rd Circuit Court of Appeals to hold that the FCRA does not require investigation into disputes concerning provider or third-party conduct.
In a related case earlier this year, ACA argued for clarity in data furnishers’ roles in investigating disputes in an amicus brief in Roberts v. Carter Young, Inc. (PDF), currently under appeal in the U.S. Court of Appeals for the 4th Circuit.
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