“The Supreme Court’s decision confirms that federal agencies cannot escape accountability when they fail to comply with their responsibilities to consumers under the FCRA. Those responsibilities include investigating consumer disputes and correcting inaccurate information.” Public Citizen Litigation Group attorney Nandan Joshi

The United States Supreme Court held that federal agencies can be sued for failing to comply with the requirements of the Fair Credit Reporting Act, including requirements that creditors investigate consumer disputes and correct inaccurate account information.

Public Citizen Litigation Group attorney Nandan Joshi served as lead counsel for the consumer in the Supreme Court.

A 2021 study cited by the Consumer Financial Protection Bureau found that more than 34% of consumers surveyed identified at least one error in their credit reports. Such mistakes can lead lenders to insist on higher interest rates or other terms that make it difficult or impossible for consumers to obtain a mortgage, auto loan, student loan, or other credit. Because federal agencies are among the largest furnishers of credit information to consumer reporting agencies, the Court’s decision is an important victory for consumers.

In this case, Pennsylvania attorney Matthew Weisberg filed suit on behalf of Reginald Kirtz, who had a loan account with U.S. Department of Agriculture Rural Development Rural Housing Service (USDA). USDA furnished information about the account to the credit reporting agency TransUnion. After discovering that the furnished information contained errors that lowered his credit score, Kirtz disputed the accuracy of TransUnion’s reporting of his USDA account status. As FCRA requires, TransUnion then notified USDA of the dispute.

Alleging that TransUnion and USDA did not take actions required by FCRA to investigate his dispute and correct his account information, Kirtz filed suit. USDA moved to dismiss the claim against it, arguing that it had federal sovereign immunity from suit. The district court granted USDA’s motion, and Kirtz appealed.

On appeal, Public Citizen’s Nandan Joshi took the lead in drafting the briefs for Kirtz and presenting oral argument. The Third Circuit issued a strong decision largely tracking his arguments and holding that FCRA waives federal agencies’ immunity by authorizing suit against “any person” and defining “person” to include government agencies.

USDA petitioned for certiorari to the U.S. Supreme Court. The Court granted the petition, and Joshi again took the lead in briefing and oral argument. In a unanimous opinion issued on February 8, 2024, the Court ruled in favor of Kirtz.