The Consumer Financial Protection Bureau’s most recent supervisory highlights publication featured issues relating to the Fair Credit Reporting Act, loan originator compensation and in-person debt collection that should be on mortgage lenders’ and debt collectors’ radar.
Federal Court Dismisses Putative FCRA Class Action for Lack of Standing and Plausible Willful Violation
On August 19, the United States District Court for the District of Nevada dismissed a putative Fair Credit Reporting Act class action against two taxi companies that had allegedly violated the Fair and Accurate Credit Transactions Act by including the first digit and last four digits of consumers’ credit card numbers on fare receipts.
After a battle of motions between the parties, on August 9th a Wisconsin federal judge dismissed a proposed class action for alleged violations under the Fair Credit Reporting Act (FCRA) against Cory Groshek.
Supreme Court’s Spokeo Decision Strengthens Standing Defense for Employers in FCRA and Other Statutory Class Actions
In an important victory for employers, the Supreme Court in Spokeo, Inc. v. Robins held that a plaintiff does not have Article III standing to sue in federal court under the Fair Credit Reporting Act (FCRA) and other federal statutes absent a sufficient allegation of the existence of a concrete injury.
The U.S. Supreme Court’s recent Spokeo decision may lead to more careful scrutiny of whether ADA Title III plaintiffs have a sufficiently “concrete” injury to confer jurisdiction in federal court.
The FTC has released new guidance aimed at helping companies that conduct background screenings for employment purposes to determine whether they are “consumer reporting agencies” within the meaning of the federal FCRA.
Employers regularly turn to background screening companies in order to obtain information/reports about applicants and employees.
The U.S. Supreme Court held Monday that the Ninth Circuit erred when it ruled consumers can sue companies without alleging actual injury.
On May 16, 2016, the United States Supreme Court ruled in Spokeo, Inc. v. Robins that consumers who bring claims under the Fair Credit Reporting Act (FCRA) must do more than allege a technical statutory violation to have standing to maintain an action in federal court.