In recent developments, the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB), commonly referred to as the Agencies, have filed a joint Amicus Brief in the Second Circuit. The goal of this move is to persuade the Court of Appeals to overturn a preceding decision wherein the Agencies argue that the Fair Credit Reporting Act (FCRA) requirement was dismissed by the Court. The FCRA requirement in question mandates that credit reporters erase contentious consumer information that is unverifiable. The action was reported on JD Supra.
More specifically, the Agencies claim that the Second Circuit misinterpreted the aforementioned requirement. The pertinent tenet is categorized under the FCRA as an obligation of credit reporting agencies to investigate when consumers challenge the accuracy of information. If in the process of this investigation, the consumer’s data cannot be confirmed, it ought to be eliminated from their credit report.
The Second Circuit’s interpretation of this mandate, however, is being contested by the FTC and CFPB, claiming it was misconstrued in a recent ruling. The details of the case in question have not been made publicly available.
This development is an example of the unending tension composition between regulations like the FCRA and their implementation in practice. Informative legal cases like these are a reminder for legal professionals and corporations alike to constantly update their comprehension of such mandates and get acquainted with their recent interpretations to avoid possible legal repercussions.