In Boggio v. USAA Federal Savings Bank, Case No. 11-4040, the Sixth Circuit joined the First, Fourth, Seventh and Ninth circuits in recognizing a private cause of action under the Fair Credit Reporting Act’s §1681s-2. Section 1681s-2 is designed to prevent “furnishers of information” from spreading inaccurate consumer-credit information. Specifically, the Sixth Circuit concluded that the FCRA
expressly creates a private right of action against a furnisher who fails to satisfy one of five duties identified in §1681s-2(b). A consumer who demonstrates that a furnisher was negligent in breach one of these duties with respect to that consumer’s disputed information is entitled to actual damages under §1681o; moreover, if a consumer can establish that a furnisher willfully violated one of its duties, then under §1681n the consumer may recover actual or statutory damages, as well as punitive damages. Costs and reasonable attorney’s fees are also authorized under both §§1681n and 1681o.
Evaluating the merits of Boggio’s case, the Court reversed the district court’s grant of summary judgment to USAA. The Court found genuine issues of material fact as to whether USAA reasonably investigated the disputed information concerning Boggio’s status as a co-obligor on his wife’s loan, and whether USAA demonstrated reckless disregard for the §1681s-2(b) requirements.