The Supreme Court agreed Tuesday to hear arguments in a case that could make it easier for consumers to hold businesses liable for failing to notify them about adverse information in credit reports. In most federal courts, consumers alleging business violations of Fair Credit Reporting Act disclosure requirements must show that businesses knew a failure to notify violated the law. But the 9th Circuit held that consumers need only prove that companies exhibited reckless disregard of the law's requirements.
September 27, 2006 at 12:00 AM
1 minute read
The original version of this story was published on Law.Com
The Supreme Court agreed Tuesday to hear arguments in a case that could make it easier for consumers to hold insurers, banks and other businesses liable for failing to notify them about adverse information in credit reports.
The Fair Credit Reporting Act requires companies to notify consumers about rate increases based on information in consumer credit reports.
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