Before the end of the current Congress, the House should pass legislation to align the Fair Credit Reporting Act with other financial consumer protection laws by capping statutory damages in class action lawsuits, eliminating punitive damages and limiting attorneys’ fees, the American Bankers Association said this week in a joint letter with 13 other associations and business groups.
The FCRA Liability Harmonization Act (H.R. 5775), sponsored by Rep. Barry Loudermilk (R-Ga.), cleared the House Financial Services Committee in June, but has not come up for a vote on the House floor. In their letter, the associations urged House Republican leaders to prioritize floor consideration of the bill.
The FCRA stands apart from other consumer financial protection statutes by allowing class action plaintiffs to pursue unlimited damages, including punitive damages, the associations said. That inconsistency has “led to the filing of lawsuits with little or no actual injury, often based on novel legal theories.”
“The FCRA Liability Harmonization Act promotes fairness in FCRA litigation by establishing reasonable limits on liability while preserving the protections granted to consumers under the FCRA,” they said. “The bill ensures that individuals harmed by FCRA violations can still receive appropriate compensation while maintaining consumers’ right to file individual or class action lawsuits and recover fair and reasonable attorney’s fees and litigation costs.”
