Test For Reasonableness

Maximum Possible Accuracy
David A. Szwak

Test For Reasonableness

Postby David A. Szwak » Wed Oct 26, 2005 6:40 pm

REASONABLY PRUDENT PERSON STANDARD APPLIED TO CRA's:

In determining whether a consumer reporting agency has employed reasonable procedures under FCRA, you must judge their conduct by what a "reasonably prudent person would do under the circumstances". You must balance the potential harm resulting from inaccuracy of the information against the burden which might or would be placed on the agency in safeguarding against such inaccuracy. Jones v. Credit Bureau of Garden City, Inc., 703 F.Supp. 897 (U.S.D.C. Kan. 1988); Houston v. TRW Informational Services, Inc., 707 F.Supp. 689 (U.S.D.C. S.D. N.Y. 1989); 15 U.S.C. s. 1681e(b); Bryant v. TRW, Inc., 689 F.2d 72 (6th Cir. 1982); Thompson v. San Antonio Retail Merchants Association, 682 F.2d 509, 513 (5th Cir. 1982).

David A. Szwak

Postby David A. Szwak » Wed Oct 26, 2005 6:47 pm

Reasonableness of consumer reporting agency's procedures is assessed by balancing "the potential harm from inaccuracy against the burden of safeguarding against such inaccuracy". Jones v. Credit Bureau of Garden City, Inc., 703 F.Supp. 897 (U.S.D.C. Kan. 1988).


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