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Published Article

Gross v. CitiMortgage: An Expansion of the Duty to Investigate Under the FCRA

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David W. Thompson, Gregg Stevens, Joseph Apatov, and Sanford P. Shatz co-authored an article on “Gross v. CitiMortgage: An Expansion of the Duty to Investigate Under the FCRA” in the Conference on Consumer Finance Law (CCFL) Consumer Finance Law Quarterly Report, Vol. 75, No. 4. The authors summarize Gross v. CitiMortage, Inc. and review CFPB’s argument for greater furnisher duty to investigate. In Gross, the Ninth Circuit reversed the summary judgment granted to CitiMortage and stated the furnisher had a duty to investigate factual and legal inaccuracy. Does this ruling contradict the Ninth Circuit’s prior decision in Carvalho v. Equifax Information Services, LLC? Read on for a detailed breakdown of Carvalho and the CFPB’s arguments.

Read the full article here.

Insights

Presentation

Responsible Data Usage: The Evolving Landscape of Data Privacy

May 9, 2023

Of Counsel Sandy Shatz (Irvine) will present "Responsible Data Usage: The Evolving Landscape of Data Privacy" at the Mortgage Bankers Association (MBA) Legal Issues and Regulatory Compliance Conference on May 9, 2023, in Austin, TX. The panel will discuss recent changes to the CPRA, federal data privacy legislation, and the recent focus on the use of AI and dark patterns on the federal and local levels.

Presentation

ABA Consumer Financial Services Committee Winter Meeting 2023

January 21-24, 2023

Four McGlinchey attorneys will participate in panel discussions during the American Bar Association (ABA) Business Law Section Consumer Financial Services Committee Winter Meeting at the Ritz Carlton, New Orleans, on January 21-24, 2023.

Published Article

Third Circuit Rules the FCRA Waives U.S. Sovereign Immunity

October 7, 2022

On August 24, 2022, the U.S. Court of Appeals for the Third Circuit held that the plain text of the Fair Credit Reporting Act (FCRA) operates as a waiver of sovereign immunity, widening the circuit split on this issue.

Published Article

Third Circuit Adopts “Reasonable Reader” Standard for Credit Report Accuracy

August 30, 2022

The Fair Credit Reporting Act (FCRA) 15 USC 1681 et. seq. requires furnishers of information to report the information accurately. Recently, several payment rating/account status cases have been filed and litigated where the Plaintiff’s bar contends the industry’s reporting of account information is misleading and violates the FCRA. However, on August 8, 2022, the U.S. Court of Appeals for the Third Circuit outlined how district courts within the Circuit must analyze credit reports when determining whether an individual tradeline is inaccurate or misleading under the FCRA. This analysis may prove to be the first nail in the coffin of the so-called “payment rating” cases which began in 2015.

Published Article

Extensions on extensions: Financing despite low inventory

August 1, 2022

Dealers continue to struggle with inventory shortages that frustrate sales staff and potential customers. In many cases, potential customers are ready, willing and able to finance a specific vehicle or type of vehicle if it becomes available within a month — or possibly within two, three or even four months in the current environment. This raises questions about how dealers can respond when customers want to finance vehicles that may remain unavailable for months.

Published Article

Credit Reporting Agency Sued for FCRA Violation Based on Alleged Inaccurate Reporting of Mortgage Delinquency During COVID-19 Forbearance

May 6, 2022

On March 24, 2022, a complaint was filed against Equifax Information Services, LLC based on its alleged inaccurate reporting of a mortgage loan delinquency. The borrowers filed the two-count complaint in the U.S. District Court for the Southern District of California, alleging Equifax violated the Fair Credit Reporting Act (FCRA) and the California Consumer Credit Reporting Agencies Act (CCRAA). The borrowers contend Equifax failed to follow reasonable procedures to establish maximum possible accuracy in the preparation of the borrowers’ credit reports. As a result, they seek actual, statutory, and punitive damages, attorney fees and costs, and other relief.