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CRA Not Liable for Customer's Misuse of i

The Ninth Circuit decided that a CRA is not liable for misuse of information by a customer. An article by Troutman Sanders states:

On May 29, the Ninth Circuit ruled that an end-user’s misuse of reported information does not render a credit reporting agency’s report inaccurate for purposes of liability under the Fair Credit Reporting Act. The Court affirmed the district court’s grant of summary judgment in the putative class action case brought against a national credit reporting agency (“CRA”).

The action centered on the CRA’s reporting of short sales and foreclosures. In reporting a short sale, the CRA coded the account with a “9-68.” The lead code of “9” indicated “Settled” and the “68” indicates “Acct legally paid in full for less than the full balance.” In reporting a foreclosure, the CRA coded the account with an “8-94,” indicating “Creditor Grantor reclaimed collateral to settle defaulted mortgage.”

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