Federal Government Faces Suit for Violating Credit Reporting Act

The Fair Credit Reporting Act’s civil liability provision unambiguously waives the government’s sovereign immunity, meaning the government can be held liable for violating the statute’s reporting requirement, the Third Circuit said Wednesday.

There is a circuit split on the issue and the opinion by Judge Cheryl Ann Krause joined the D.C. and Seventh circuits. The Fourth and Ninth circuits have ruled that the US isn’t subject to liability under the FCRA.

Reginald Kirtz accused the Department of Agriculture of reporting a loan as past due when it was paid off. He complained to the credit reporting agency Trans Union LLC ...