1681e[b] is Not Strict Liability

Maximum Possible Accuracy
David A. Szwak

1681e[b] is Not Strict Liability

Postby David A. Szwak » Thu Nov 03, 2005 5:44 pm

Daniels v. National City Bank
947 F.2d 944, 1991 Westlaw 230835
[6th Cir.[Ohio]] Nov. 8, 1991.

Pro se Ohio plaintiff appeals the court's orders dismissing his civil complaint brought under the FCRA and awarding sanctions to defendants under Fed.R.Civ.P. 11. He requests an award of sanctions pursuant to Fed.R.App.P. 38. Daniels claimed that defendants violated his constitutional rights and rights guaranteed by the FCRA. He alleged first that National City Bank ["National City"] disclosed false and misleading information to a credit bureau and deprived him of insurance proceeds for his stolen van without due process.

Second, he alleged that Central Trust Bank ["Central Trust"] reported to a consumer reporting agency false information concerning a checking account closed for fraud.

Third, Daniels alleged that the consumer reporting agency, Chex Systems, failed to maintain a reasonable procedure to verify the accuracy of information, as required by statute.

First, Daniels failed to state a claim against the banks because banks are not "consumer reporting agencies" within the meaning of the Act. 1681a[d],[f]; Smith v. First National Bank of Atlanta, 837 F.2d 1575, 1579 [11th Cir.] [per curiam], cert. denied, 488 U.S. 821 [1988].

Second, the court did not abuse its discretion when it granted Chex System's motion for involuntary dismissal under Fed.R.Civ.P. 41. [b]As noted by the court, liability under the Act does not flow from showing the information is inaccurate, but from a determination that the consumer reporting agency failed to maintain reasonable procedures to assure the accuracy of its reports. Bryant v. TRW, Inc., 689 F.2d 72, 78 [6th Cir.1982].

Facts developed in the record do not show that the verification procedures were unreasonable.

David A. Szwak

Postby David A. Szwak » Sun Nov 13, 2005 8:19 pm

Credit reporting agencies are not strictly liable under the Fair Credit Reporting Act (FCRA) for inaccuracies contained in credit reports; instead, a plaintiff must show that the inaccuracy resulted from the agency's failure to follow reasonable procedures to assure maximum possible accuracy.

Graham v. CSC Credit Services, Inc.
306 F.Supp.2d 873

David A. Szwak

Postby David A. Szwak » Tue Dec 13, 2005 6:45 pm

Anderson v. Trans Union
--- F.Supp.2d ----, 2005 WL 3358689
Dec 09, 2005

The Fair Credit Reporting Act is not a strict liability statute. Henson v. CSC Credit Services, 29 F.3d 280, 284 (7th Cir.1994). Therefore, defendant was not required to take any action to correct plaintiff's credit report until he provided notice of the alleged error. Sarver v. Experian Information Systems, 390 F.3d 969, 971 (7th Cir.2004).

David A. Szwak

Postby David A. Szwak » Tue Feb 14, 2006 6:13 pm

Slip Copy, 2006 WL 227585 (11th Cir.(Ga.))
Only the Westlaw citation is currently available.

This case was not selected for publication in the Federal Reporter.

Please use FIND to look at the applicable circuit court rule before citing this opinion. Eleventh Circuit Rule 36-2. (FIND CTA11 Rule 36-2.)

United States Court of Appeals,
Eleventh Circuit.
Leopold O.V. ENWONWU, Plaintiff-Appellant,
TRANS UNION, LLC, d.b.a. Trans Union Consumer Relations, Equifax Information
Services, L.L.C., Winding River Village Condominium Association, Inc., Alan
Armstrong, Joyce Weems, Richard M. Howe, Defendants-Appellees.
No. 05-13695
Non-Argument Calendar.
D.C. Docket No. 03-00282-CV-ODE-1.
Jan. 31, 2006.

Section 1681e(b) provides that "[w]henever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates." 15 U.S.C. § 1681e(b). To establish a prima facie case of a violation of § 1681e(b), a consumer must present evidence that a credit reporting agency's report was inaccurate and was a causal factor in the denial of his credit application. Cahlin v. Gen. Motors Acceptance Corp., 936 F.2d 1151, 1156, 1161 (11th Cir.1991). The FCRA, however, "does not make reporting agencies strictly liable for all inaccuracies." Id. "The agency can escape liability if it establishes that an inaccurate report was generated by following reasonable procedures...." Id.

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