Re: JR- Copy of Nelson v. Chase decision Part 3

Posted by JR (205.188.209.12) on October 20, 2002 at 23:27:45:

In Reply to: JR- Copy of Nelson v. Chase decision Part 3 posted by Lady on October 19, 2002 at 16:38:21:

Yes. Prior to this case, the courts interpretted the FCRA as limiting a consumer's cause of action to the errors/negligence of the credit bureaus. In this case, at least in the 9th circuit, the court has ruled that the furnishers of the information -- all creditors -- may be sued by the consumer.

When the FCRA was written the legislature did not want to inhibit reporting. Therefore, the focus of correctly reporting a consumer's credit history was placed upon the bureaus. However, since this case, the court has decided that, in some instances, the creditor could be responsible for causing a consumer's credit report to be unfairly and unreasonably affected by the creditor's report. Hence, the decision to allow Nelson's case go forward rather than be dismissed by the lower court.

From this point forward, consumers will be able to sue creditors. However, the facts of the case still have to support a cause of action or else it will be dismissed.

Even though this is a ninth circuit decision, other circuits will often follow the reasoning when another circuit has ruled on a case with similar circumstances.

I don't know where this case stands now but, it is on my list of things to do. When I find out, I will post it on the board.

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