CUNA wrote Monday in support of legislation it believes would make frivolous Fair Credit Reporting Act (FCRA) litigation less likely while balancing consumer protections. The FCRA Liability Harmonization Act (H.R. 2359) was introduced by Rep. Barry Loudermilk (R-Ga.).
“The FCRA Liability Harmonization Act would create a more appropriate balance that still protects consumers but is less likely to attract frivolous FCRA class action litigation,” wrote CUNA President/CEO Jim Nussle. “Consumers would continue to have important consumer protections and opportunities for relief under the FCRA.”
Nussle noted that credit unions have been forced to settle frivolous FCRA class action litigation, and in other instances members have been harmed when an exorbitant amount of resources have been depleted because of the lack of a cap on statutory damages.
“Accordingly, credit unions support your legislation’s goal of aligning FCRA damages with many other financial consumer protection laws, by capping the amount of statutory damages,” Nussle wrote, adding that Loudermilk’s bill would create a better and more equitable system.