Fair Credit Reporting Act (FCRA) Violations

In Florida, which laws and regulations apply to FCRA violations?

In addition to the federal FCRA, Florida has laws and regulations that apply to and supplement FCRA violations. The Florida Consumer Collection Practices Act (FCCPA) is the primary state law governing Florida’s debt collection and credit reporting practices. It complements the FCRA by providing consumers additional protection against abusive, deceptive, and unfair practices by creditors, debt collectors, and credit reporting agencies (CRAs).

One notable difference between the FCRA and FCCPA is that the latter explicitly prohibits original creditors from harassing, deceptive, or abusive collection tactics, while the FCRA primarily focuses on regulating third-party debt collectors.

Other relevant Florida statutes include the Florida Deceptive and Unfair Trade Practices Act (FDUTPA), which prohibits unfair methods of competition and deceptive trade practices. Many plaintiffs often use the FDUPTA alongside the FCRA and FCCPA to hold CRAs, data furnishers, and credit information users accountable for their actions.

In summary, federal and state laws, including the FCRA, FCCPA, and FDUTPA, apply to Florida’s credit reporting and debt collection practices. These laws provide comprehensive consumer protection and set the framework for addressing violations in Fair Credit Reporting Act defense litigation matters.

Need help regarding FCRA defense litigation? Schedule your consultation today with a top FCRA defense litigation attorney.

What are common violations of the FCRA that lead to litigation?

The following issues commonly lead to FCRA litigation:

• Inaccurate information: CRAs or other data furnishers may report false information, such as incorrect payment history, which negatively affects the consumer’s credit score.
• Mixed files: CRAs or other data furnishers may merge the credit information of two individuals with similar personal information, leading to incorrect credit reports.
• Identity theft: CRAs or other data furnishers may fail to adequately address identity theft cases, causing victims to have fraudulent accounts or incorrect information on their credit reports.
• Obsolete information: CRAs or other data furnishers may report outdated negative information that should have been removed from the credit report after the appropriate time.
• Failure to investigate disputes: CRAs or other data furnishers may not adequately investigate consumer disputes, leading to incorrect information on the credit report.
• Unauthorized access: CRAs or other data furnishers may disclose consumer credit information to entities without a permissible purpose, violating the consumer’s privacy rights.

When a set of facts is appropriate for FCRA defense litigation, there are many paths a claimant may take. We are value-based attorneys at Jimerson Birr, which means we look at each action with our clients from the point of view of costs and benefits while reducing liability. Then, based on our client’s objectives, we chart a path to seek appropriate remedies.

To determine whether your unique situation may necessitate litigation, please contact our office to set up your initial consultation.

What elements must a plaintiff prove for an FCRA violation, and what are common legal defenses?

To succeed in an FCRA action in Florida, a plaintiff must prove the following elements:

• A violation of the FCRA by the CRA, data furnisher, or user of consumer credit information occurred;
• The plaintiff suffered damages as a result of the violation; and
• The violation was willful or negligent.

Common legal defenses that FCRA defendants raise against FCRA claims include:

• Statute of limitations: The defendant may argue that the plaintiff’s claim is time-barred, as FCRA claims must be filed within a specific time frame.
• Permissible purpose: The defendant may argue that they had a permissible purpose to access or use the consumer’s credit information, negating the claim of unauthorized access.
• No actual harm: The defendant may assert that the plaintiff did not suffer any actual damages due to the alleged FCRA violation, which would preclude a claim for damages.
• Compliance with the FCRA: The defendant may argue that they complied with the FCRA requirements, such as proper investigation of disputes or accurate information reporting.
• Reasonable procedures: The defendant may claim they had reasonable procedures to ensure accuracy and prevent FCRA violations, which could mitigate liability.

Please contact our office to set up your initial consultation to see what actions or defenses may be available for your unique situation.

What are effective measures to minimize the risk of litigation?

Consider the following measures:

• Establish and maintain reasonable procedures: Businesses should have proper procedures to ensure the accuracy and reliability of the information reported to CRAs. These procedures should be periodically reviewed and updated.
• Train employees: Providing adequate training to employees who handle consumer credit information ensures they are well-versed in FCRA compliance and can avoid potential violations.
• Verify information: Verify information reported to CRAs and correct inaccuracies promptly by double-checking personal information and payment histories.
• Respond to disputes: Timely and thoroughly investigating consumer disputes is crucial to maintaining compliance with the FCRA.
• Limit access to consumer credit information: Ensure that access to credit reports is granted only to those with a permissible purpose, as defined by the FCRA.
• Monitor third-party relationships: If third parties are involved in handling consumer credit information, businesses should monitor their compliance with the FCRA to minimize the risk of violations.

Frequently Asked Questions

1. How long does negative information stay on a credit report?

Generally, negative information remains on a credit report for seven years. However, certain types of bankruptcies can stay on a report for up to 10 years, and unpaid tax liens may remain for 15 years.

2. What kinds of damages can consumers sue for under the FCRA?

Depending on the circumstances of the alleged violation, they can seek actual damages, statutory damages for willful violations, punitive damages, and attorney’s fees.

3. Are employers subject to the FCRA when conducting background checks?

Yes, employers are subject to the FCRA when conducting background checks. They must comply with specific requirements, such as obtaining the applicant’s written consent before accepting a background report and providing the applicant with a copy of the information and a summary of their rights under the FCRA if adverse action is taken based on the report.

Have more questions about an FCRA defense-related situation?

Crucially, this overview of FCRA violations does not begin to cover all the laws implicated by this issue or the factors that may compel the application of such laws. Every case is unique, and the laws can produce different outcomes depending on the individual circumstances.

Jimerson Birr attorneys guide our clients to help make informed decisions while ensuring their rights are respected and protected. Our lawyers are highly trained and experienced in the nuances of the law, so they can accurately interpret statutes and case law and holistically prepare individuals or companies for their legal endeavors. Through this intense personal investment and advocacy, our lawyers will help resolve the issue’s complicated legal problems efficiently and effectively.

Having a Jimerson Birr attorney on your side means securing a team of seasoned, multi-dimensional, cross-functional legal professionals. Whether it is a transaction, an operational issue, a regulatory challenge, or a contested legal predicament that may require court intervention, we remain tireless advocates at every step. Being a value-added law firm means putting the client at the forefront of everything we do. We use our experience to help our clients navigate even the most complex problems and come out the other side triumphant.

If you want to understand your case, the merits of your claim or defense, potential monetary awards, or the amount of exposure you face, you should speak with a qualified Jimerson Birr lawyer. Our experienced team of attorneys is here to help. Call Jimerson Birr at (904) 389-0050 or use the contact form to schedule a consultation.