Often, when faced with litigation, it can be difficult to assess potential exposure for defendants. While actual damages may be easy to calculate, treble damages, attorneys’ fee awards, and punitive damages significantly complicate the risk analysis associated with litigation depending on the claims asserted. Unfortunately, the Fair Credit Reporting Act is no different. A wide array of damages is recoverable under the statute. Understanding the statutory scheme, however, may help alleviate some confusion. To begin with, the Act categorizes statutory violations as “negligent” or “willful.” Actual damages are recoverable regardless of whether the statutory violation is negligent or willful. These include financial losses suffered directly as a result of the defendants’ statutory violation and also for other costs incurred, such as time lost correcting a false credit report. Surprisingly, emotional distress and a loss of reputation are also compensable even in the absence of out-of-pocket expenses. See, e.g., Fischl v. General Motors Acceptance Corp., 708 F.2d 143, 151 (5th Cir. 1983); Arriola v. Safeco, 15 F.3d 1082 (9th Cir. 1993). Thus, direct losses, indirect losses, and emotional damage are recoverable for even negligent violations of the Act. If a defendant is guilty of willfully violating the Act, plaintiffs are entitled to even more. For willful noncompliance, plaintiffs may recover actual or statutory damages ranging from $100 to $1000 per violation. The Act also permits recovery of punitive damages, though courts have broad discretion in this regard. As always, punitive damages may be limited by the Due Process Clause. (While this may offer some comfort to Defendants, judges are reluctant to modify a jury award except in the most extreme cases). Adding insult to injury, attorney’s fees and costs are also recoverable. In short, when faced with FCRA claims, understanding the damages recoverable under the Act goes a long way in analyzing potential exposure and risk associated with litigation.
Copyright © 2024 Womble Bond Dickinson (US) LLP All Rights Reserved.
We collaborate with the world's leading lawyers to deliver news tailored for you. Sign Up to receive our free e-Newsbulletins
You are responsible for reading, understanding, and agreeing to the National Law Review's (NLR’s) and the National Law Forum LLC's Terms of Use and Privacy Policy before using the National Law Review website. The National Law Review is a free-to-use, no-log-in database of legal and business articles. The content and links on www.NatLawReview.com are intended for general information purposes only. Any legal analysis, legislative updates, or other content and links should not be construed as legal or professional advice or a substitute for such advice. No attorney-client or confidential relationship is formed by the transmission of information between you and the National Law Review website or any of the law firms, attorneys, or other professionals or organizations who include content on the National Law Review website. If you require legal or professional advice, kindly contact an attorney or other suitable professional advisor.
Some states have laws and ethical rules regarding solicitation and advertisement practices by attorneys and/or other professionals. The National Law Review is not a law firm nor is www.NatLawReview.com intended to be a referral service for attorneys and/or other professionals. The NLR does not wish, nor does it intend, to solicit the business of anyone or to refer anyone to an attorney or other professional. NLR does not answer legal questions nor will we refer you to an attorney or other professional if you request such information from us.
Under certain state laws, the following statements may be required on this website and we have included them in order to be in full compliance with these rules. The choice of a lawyer or other professional is an important decision and should not be based solely upon advertisements. Attorney Advertising Notice: Prior results do not guarantee a similar outcome. Statement in compliance with Texas Rules of Professional Conduct. Unless otherwise noted, attorneys are not certified by the Texas Board of Legal Specialization, nor can NLR attest to the accuracy of any notation of Legal Specialization or other Professional Credentials.
The National Law Review - National Law Forum LLC 2070 Green Bay Rd., Suite 178, Highland Park, IL 60035 Telephone (708) 357-3317 or toll-free (877) 357-3317. If you would like to contact us via email please click here.
Copyright ©2024 National Law Forum, LLC
