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August 21 2018

Ninth Circuit Rules CRA Cannot be Held Liable Under FCRA for Customers' Misuse of Information

The Ninth Circuit ruled in May that an end-user's misuse of reported information does not render a credit reporting agency's report inaccurate for purposes of liability under the Fair Credit Reporting Act (FCRA). The court affirmed the district court's grant of summary judgment in the putative class action case brought against a national credit reporting agency (CRA).

Centered on the CRA 's reporting of short sale sand foreclosures, plaintiffs John Shaw, Kenneth Coke and Raymond Rydman brought the putative class action against the CRA, alleging it violated the FCRA in failing to follow reasonable procedures to ensure maximum accuracy, in failing to conduct a reasonable investigation and in failing to fully disclose their files.