Approximately 50 cases have been filed recently in Nevada state and federal courts against furnishers of information and credit reporting agencies (CRAs) for alleged Fair Credit Reporting Act (FCRA) violations. It appears that consumer rights attorneys have teamed up with consumer bankruptcy firms to monitor credit reports over the course of a debtor’s bankruptcy case and then sue creditors and CRAs after discharge if the debtor’s credit report inaccurately reports debts after the bankruptcy.

The FCRA broadly requires credit card issuers, lenders, insurers, and other furnishers of credit information to report accurate consumer credit information. While only federal or state agencies can enforce many of the specific statutory duties, there is an exception. The FCRA expressly creates a private cause of action for a furnisher’s failure to reasonably investigate and/or correct inaccurate consumer information after the furnisher receives a notice of dispute from a CRA.

This new wave of litigation in Nevada underscores the fact that furnishers of credit information must be vigilant about whether their systems are accurately reflecting debts discharged in a bankruptcy.

Ballard Spahr’s Consumer Financial Services Group is nationally recognized for its guidance in structuring and documenting new consumer financial services products, its experience with the full range of federal and state consumer credit laws, and its skill in litigation defense and avoidance. Ballard Spahr has a strong presence in the West with more than 150 attorneys across six Western offices.

For more information, please contact Consumer Financial Services Practice Leader Alan S. Kaplinsky, Consumer Financial Services Litigation Practice Leader Christopher J. Willis, Joel E. Tasca, Abran Vigil, Lindsay C. Demaree, or the member of the group with whom you regularly work.

Copyright © 2015 by Ballard Spahr LLP.
(No claim to original U.S. government material.)

All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, including electronic, mechanical, photocopying, recording, or otherwise, without prior written permission of the author and publisher.

This alert is a periodic publication of Ballard Spahr LLP and is intended to notify recipients of new developments in the law. It should not be construed as legal advice or legal opinion on any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own attorney concerning your situation and specific legal questions you have.


Related Practice

Consumer Financial Services


Visit CFPB Monitor, our blog on the Consumer Financial Protection Bureau >

Subscribe to the blog via e-mail >