WASHINGTON—NAFCU and CUNA have joined with several other organizations to file an amicus brief with the U.S. Court of Appeals for the Eleventh Circuit arguing that the Fair Credit Reporting Act (FCRA) requires furnishers and consumer reporting agencies (CRAs) to investigate factual inaccuracies, not legal disputes.
The brief was filed in response to one filed by the CFPB in December that argues data furnishers and CRAs should investigate legal disputes in addition to factual disputes.
The brief supports Holiday Day Inn Club Vacations Inc. in two separate lawsuits filed by consumers – consolidated for the appeal – who purchased timeshares through the company, according to the trade group.
In the case, both plaintiffs made some monthly payments before stopping payments and notified Holiday Inn of their intent to no longer pay in attempts to cancel the contracts. The consumers’ credit reports subsequently showed delinquencies and past-due balances. The consumers disputed their reports with Experian, which in turn sent notice of the disputes to Holiday Inn. Holiday Inn certified the information on the consumers’ credit reports as accurate, NAFCU explained.
Summary Judgement Granted
The district courts for each of the cases granted summary judgment in favor of Holiday Inn, noting that these are legal contractual disputes, not factual issues that would support an FCRA claim.
In the amicus brief, the groups outlined that the FCRA’s structure, purpose, and history confirm that Congress’s intent for the FCRA was for factual accuracy, not for legal disputes. In addition, the groups highlighted that adopting the CFPB’s approach is un-administrable because furnishers and CRAs are neither qualified nor obligated to resolve legal disputes, NAFCU explained.
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