Experian defeats FCRA lawsuit in Second Circuit based on holding that alleged legal inaccuracy is not actionable under FCRA

Client(s) Experian Information Solutions, Inc.

Jones Day successfully defended Experian Information Solutions, Inc. in a Fair Credit Reporting Act ("FCRA") liability lawsuit premised on an alleged legal inaccuracy. The plaintiff alleged that his private educational loan was discharged in bankruptcy and Experian should not have reported the loan as due and owing. The district court granted Experian's summary judgment motion on the ground plaintiff's private loan was non-dischargeable, and thus Experian reported accurate information. The Second Circuit affirmed on a different basis: it held that "claims under the FCRA require factual inaccuracies to be actionable," and that this case turned on a legal dispute not cognizable under the FCRA. This decision was the first time the Second Circuit expressly held that FCRA claims premised on a legal inaccuracy are generally not cognizable under the FCRA, a rule that had been adopted by other circuits.

Mader v. Experian Information Solutions, Inc., 56 F.4th 264, 270 (2d Cir. 2023)