NEW YORK—NAFCU and CUNA have joined with other groups in filing a brief in the 2nd Circuit Court of Appeals in a case involving the Fair Credit Reporting Act (FCRA), Sessa v. TransUnion.
The lawsuit is over whether the FCRA addresses only factual accuracy in credit reports, or also requires determinations of legal validity.
The plaintiff in Sessa alleges TransUnion failed to maintain reasonable procedures to ensure the accuracy of her credit report, CUNA reported.
The U.S. District Court for the Southern District of New York ruled in favor of TransUnion, stating the FCRA requires credit reporting agencies to guard against factual inaccuracies, not to resolve legal disputes.
In the brief, the organizations stated they agree with the decision, arguing it is in accordance with the FCRA’s text, purpose, structure, and history.
‘Damaging Economic Consequences’
“The Fair Credit Reporting Act requires credit reporting agencies to guard against factual inaccuracies, not to resolve legal disputes,” the filing organizations said in a joint statement.
“We’re asking the Second Circuit to reject the CFPB’s theory, which would require credit reporting agencies to adjudicate legal disputes. That approach would have damaging economic consequences for consumers, furnishers, and credit reporting agencies.”
The brief notes the First, Seventh, Ninth, 10th, and 11th Circuits have all held that a reporting agency’s obligations extend only to factually accurate information.
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