Ninth Circuit Holds Credit Agency Responsible For Erroneous Credit Report
A three-judge panel on the U.S. Court of Appeals for the Ninth Circuit took the unusual step of granting summary judgment against Experian Information Solutions, holding that the credit reporting agency violated a federal law that requires credit agencies to take reasonable steps to verify the accuracy of credit reports and review reports that have been challenged, and directed the district court to calculate damages and attorney's fees, the Los Angeles Times and San Francisco Chronicle reported. The company had placed an erroneous filing on Jason Dennis' credit report and refused to change it.
In his opinion, Judge Kozinski wrote "This case illustrates how important it is for Experian, a company that traffics in the reputations of ordinary people, to train its employees to understand the legal significance of the documents they rely on." The court additionally held that Dennis is entitled to a trial on the claim that Experian failed to adopt reasonable procedures to ensure accuracy.