Summarised by Centrist
The US Supreme Court’s recent ruling on 8 February 2024 has major implications for consumer rights, as it rejected the Biden administration’s attempt to shield federal agencies from lawsuits.
The landmark 9-0 decision reaffirms that federal agencies can be sued under the Fair Credit Reporting Act (FCRA), granting consumers the right to seek legal recourse against creditors for inaccuracies in credit information. The case, initiated by Reginald Kirtz, relates to the impact of erroneous credit reporting by the Department of Agriculture’s Rural Housing Service on individuals’ credit scores.
The court found Congress’s amendments to consumer protection laws, thirty years ago, waived US sovereign immunity, allowing citizens to hold federal agencies accountable for their actions in matters concerning consumer rights and fair credit reporting.
